Rentokil Initial plc (RTO) 10-Year Financial Performance & Capital Metrics

RTO • • Industrial / General

IndustrialsBusiness ServicesFacility Management & Support ServicesIntegrated Facility Services

AboutRentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. It offers a range of pest control services for rodents, and flying and crawling insects, as well as other forms of wildlife management for commercial and residential customers. The company also provides hygiene services, including the provision and maintenance of products, such as soap and hand sanitizer dispensers, hand dryers, air care and purification, cubicle and surface sanitizers, feminine hygiene units, toilet paper dispensers, and floor protection mats. In addition, it engages in the supply and laundering of workwear, uniforms, cleanroom uniforms, and protective equipment. Further, the company installs and services interior and exterior plant displays, flowers, replica foliage, Christmas decorations, and ambient scenting for commercial businesses; offers property care services consisting of damp proofing, property conservation, and woodworm and wood rot treatment; and provides a range of specialist cleaning services, such as graffiti removal deep cleaning of kitchens and washrooms, trauma cleaning, and flood or fire damage cleaning, as well as specialist industrial cleaning and disinfection services, including the professional and discreet disinfection of areas that have been exposed to bio-hazardous situations, such as crime and trauma scenes, prison cells, void properties, emergency vehicles, and healthcare establishments. Additionally, it offers a range of healthcare waste management services comprising the collection, disposal, and recycling of hazardous and offensive waste produced by businesses and organizations associated with the provision of healthcare; and color-coded sharps disposal bins to deal with various types of waste. Rentokil Initial plc was founded in 1903 and is headquartered in Crawley, the United Kingdom.Show more

Revenue $5.44B +1.1%
EBITDA $869M -21.0%
Net Income $307M -19.4%
EPS (Diluted) 0.60 -20.0%
Gross Margin 13.36% -83.9%
EBITDA Margin 15.99% -21.9%
Operating Margin 10.1% -13.1%
Net Margin 5.65% -20.3%
ROE 7.38% -20.7%
ROIC 5.6% -12.4%
Debt/Equity 0.98 -15.4%
Interest Coverage 2.86 -13.5%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 15.2%
✓Trading near 52-week high

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y12.06%

5Y15.23%

3Y22.54%

TTM46%

Profit (Net Income) CAGR

10Y9.31%

5Y1.58%

3Y5.29%

TTM23.17%

EPS CAGR

10Y-1.53%

5Y-4.36%

3Y-5.01%

TTM-0.75%

ROCE

10Y Avg11.5%

5Y Avg8.38%

3Y Avg6.34%

Latest6.64%

Peer Comparison

Integrated Facility Services

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
RTORentokil Initial plc	15.71B	31.23	52.05	1.13%	6.01%	13.12%	3.23%	0.98
ARMKAramark	10.25B	39.01	31.98	6.35%	1.76%	10.32%	4.43%	1.81
ABMABM Industries Incorporated	2.71B	45.04	17.39	4.62%	1.86%	9.1%	5.72%	0.95

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	1.76B	2.17B	2.41B	2.47B	2.68B	2.79B	2.95B	3.71B	5.38B	5.44B
Revenue Growth %	0.01%	0.23%	0.11%	0.02%	0.08%	0.04%	0.06%	0.26%	0.45%	0.01%
Cost of Goods Sold+	310.2M	376.1M	474.9M	514.2M	2.1B	2.14B	2.24B	2.74B	927M	4.71B
COGS % of Revenue	0.18%	0.17%	0.2%	0.21%	0.78%	0.77%	0.76%	0.74%	0.17%	0.87%
Gross Profit+	1.45B	1.79B	1.94B	1.96B	577.2M	653M	714.8M	977M	4.45B	726M
Gross Margin %	0.82%	0.83%	0.8%	0.79%	0.22%	0.23%	0.24%	0.26%	0.83%	0.13%
Gross Profit Growth %	0%	0.24%	0.08%	0.01%	-0.71%	0.13%	0.09%	0.37%	3.55%	-0.84%
Operating Expenses+	1.25B	1.54B	1.18B	2.03B	322.5M	352M	348.6M	479M	3.82B	177M
OpEx % of Revenue	0.71%	0.71%	0.49%	0.82%	0.12%	0.13%	0.12%	0.13%	0.71%	0.03%
Selling, General & Admin	965.7M	1.2B	1.33B	1.36B	322.5M	352M	348.6M	479M	2.87B	0
SG&A % of Revenue	0.55%	0.55%	0.55%	0.55%	0.12%	0.13%	0.12%	0.13%	0.53%	-
Research & Development	0	0	0	0	0	0	5M	5M	0	7M
R&D % of Revenue	-	-	-	-	-	-	0%	0%	-	0%
Other Operating Expenses	0	68.7M	10.6M	7M	0	0	-5M	-5M	953M	170M
Operating Income+	216.8M	257.3M	315.5M	283.1M	254.7M	294M	347M	317M	625M	549M
Operating Margin %	0.12%	0.12%	0.13%	0.11%	0.1%	0.11%	0.12%	0.09%	0.12%	0.1%
Operating Income Growth %	0%	0.19%	0.23%	-0.1%	-0.1%	0.15%	0.18%	-0.09%	0.97%	-0.12%
EBITDA+	408.7M	501.6M	514.3M	513.3M	580.6M	508M	549M	575M	1.1B	869M
EBITDA Margin %	0.23%	0.23%	0.21%	0.21%	0.22%	0.18%	0.19%	0.15%	0.2%	0.16%
EBITDA Growth %	-0%	0.23%	0.03%	-0%	0.13%	-0.13%	0.08%	0.05%	0.91%	-0.21%
D&A (Non-Cash Add-back)	191.9M	244.3M	198.8M	230.2M	325.9M	214M	202M	258M	475M	320M
EBIT	216.8M	257.3M	315.5M	283.1M	393M	303M	378M	490M	682M	670M
Net Interest Income+	-33.2M	-30.8M	-35.3M	-38M	-44.6M	-34M	-33M	-72M	-164M	-156M
Interest Income	38.8M	38.9M	41.8M	45.4M	9.9M	6M	1M	5M	25M	36M
Interest Expense	38.3M	38.5M	34.8M	35.6M	54.5M	40M	34M	77M	189M	192M
Other Income/Expense	-57.8M	-23.9M	398.1M	-397.2M	57.7M	-64M	-22M	-21M	-132M	-144M
Pretax Income+	159M	208.5M	713.6M	-114.1M	323.3M	230M	325M	296M	493M	405M
Pretax Margin %	0.09%	0.1%	0.3%	-0.05%	0.12%	0.08%	0.11%	0.08%	0.09%	0.07%
Income Tax+	34.7M	40.7M	30.6M	-15.8M	54.7M	44M	61.9M	64M	112M	98M
Effective Tax Rate %	0.78%	0.8%	0.96%	0.86%	0.88%	0.81%	0.81%	0.78%	0.77%	0.76%
Net Income+	124.3M	167.5M	682.8M	-98.3M	283.8M	186M	263M	232M	381M	307M
Net Margin %	0.07%	0.08%	0.28%	-0.04%	0.11%	0.07%	0.09%	0.06%	0.07%	0.06%
Net Income Growth %	-0.01%	0.35%	3.08%	-1.14%	3.89%	-0.34%	0.41%	-0.12%	0.64%	-0.19%
Net Income (Continuing)	124.3M	167.8M	683M	-98.3M	283.8M	186M	263M	232M	381M	307M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	-200K	100K	300K	400K	600K	900K	-500K	-1M	-1M	-1M
EPS (Diluted)+	0.34	0.46	1.85	-0.27	0.75	0.50	0.70	0.60	0.75	0.60
EPS Growth %	-0.51%	0.35%	3.02%	-1.15%	3.78%	-0.33%	0.4%	-0.14%	0.25%	-0.2%
EPS (Basic)	0.34	0.46	1.85	-0.27	0.75	0.50	0.70	0.60	0.75	0.60
Diluted Shares Outstanding	365.34M	368.58M	370.1M	368.24M	372.1M	372.58M	373.26M	402.8M	505.4M	505.6M
Basic Shares Outstanding	363.84M	365.2M	366.96M	367.48M	369.8M	370.64M	371.62M	400.4M	503.2M	505.77M
Dividend Payout Ratio	0.39%	0.33%	0.09%	-	0.3%	-	0.53%	0.53%	0.53%	0.75%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	598.7M	823.4M	864.1M	741.5M	1.79B	2.84B	1.34B	3.24B	2.7B	2.09B
Cash & Short-Term Investments	201.9M	171.1M	310.6M	132.3M	1.17B	2.12B	670M	2.17B	1.55B	927M
Cash Only	102.6M	160.2M	310.1M	129.8M	1.17B	1.95B	668.4M	2.17B	1.55B	925M
Short-Term Investments	99.3M	9.6M	500K	2.5M	1.7M	172.2M	1.6M	1M	1M	2M
Accounts Receivable	270.2M	316.1M	374.3M	412.6M	434.8M	504.6M	527M	830M	880M	909M
Days Sales Outstanding	56.07	53.22	56.63	60.91	59.3	66.03	65.12	81.57	59.76	61.03
Inventory	55.7M	80M	84.3M	103.2M	106.5M	131.3M	135.7M	242.04M	207M	229M
Days Inventory Outstanding	65.54	77.64	64.79	73.26	18.52	22.43	22.12	32.28	81.5	17.75
Other Current Assets	42.7M	223.9M	54.6M	60.7M	43M	51.9M	11M	-4.04M	33M	22M
Total Non-Current Assets+	1.3B	1.42B	1.88B	2.22B	2.47B	2.74B	2.98B	8.68B	8.43B	8.47B
Property, Plant & Equipment	477.1M	416.3M	390.2M	436.9M	612.9M	620.2M	625.6M	949M	951M	963M
Fixed Asset Turnover	3.69x	5.21x	6.18x	5.66x	4.37x	4.50x	4.72x	3.91x	5.65x	5.64x
Goodwill	597.3M	736M	972.2M	1.16B	1.34B	1.61B	1.84B	5.12B	5.02B	5.16B
Intangible Assets	212M	251.4M	234.8M	338.6M	1.67B	1.92B	2.16B	7.32B	2B	1.93B
Long-Term Investments	17.8M	18M	278.9M	291.9M	50.3M	77.5M	54M	187M	167M	64M
Other Non-Current Assets	-2M	-2M	-3.4M	-3.5M	-1.24B	-1.52B	-1.75B	-4.93B	291M	352M
Total Assets+	2.16B	2.54B	3.11B	3.08B	4.25B	5.58B	4.32B	11.92B	11.13B	10.55B
Asset Turnover	0.81x	0.85x	0.78x	0.80x	0.63x	0.50x	0.68x	0.31x	0.48x	0.52x
Asset Growth %	0.21%	0.18%	0.22%	-0.01%	0.38%	0.31%	-0.23%	1.76%	-0.07%	-0.05%
Total Current Liabilities+	852.6M	679.6M	713.8M	1.24B	1.78B	2.7B	1.39B	2.85B	2.58B	2.58B
Accounts Payable	93.2M	119.8M	152.3M	108.7M	115M	102.3M	104M	424.78M	357M	315M
Days Payables Outstanding	109.66	116.26	117.06	77.16	20	17.48	16.95	56.65	140.57	24.41
Short-Term Debt	345M	62.5M	68M	507.1M	944.2M	1.59B	460M	1.34B	1.13B	1.17B
Deferred Revenue (Current)	-1000K	-1000K	-1000K	1000K	1000K	1000K	1000K	1000K	0	0
Other Current Liabilities	145.4M	193.1M	308.8M	326.5M	193.4M	395.9M	194.3M	326M	755M	158M
Current Ratio	0.70x	1.21x	1.21x	0.60x	1.01x	1.05x	0.97x	1.14x	1.05x	0.81x
Quick Ratio	0.64x	1.09x	1.09x	0.51x	0.95x	1.00x	0.87x	1.05x	0.97x	0.72x
Cash Conversion Cycle	11.94	14.59	4.37	57.01	57.82	70.98	70.29	57.2	0.7	54.37
Total Non-Current Liabilities+	866.6M	1.23B	1.14B	716.8M	1.48B	1.75B	1.67B	4.98B	4.46B	3.75B
Long-Term Debt	850M	1.26B	1.14B	716.8M	1.06B	1.34B	1.29B	3.67B	3.15B	2.53B
Capital Lease Obligations	15.4M	25.9M	0	27.3M	144.7M	141.8M	139M	325M	318M	315M
Deferred Tax Liabilities	112.8M	112.8M	109.3M	96M	110.8M	94.7M	108.1M	620.83M	517M	0
Other Non-Current Liabilities	-114.8M	-172.3M	0	-27.3M	0	175.6M	0	0	601.28M	909M
Total Liabilities	1.95B	2.18B	2.17B	2.25B	3.25B	4.45B	3.06B	7.82B	7.04B	6.33B
Total Debt+	1.2B	1.34B	1.23B	1.27B	2.22B	3.14B	1.97B	5.47B	4.73B	4.14B
Net Debt	1.1B	1.18B	924.8M	1.14B	1.05B	1.19B	1.26B	3.23B	3.19B	3.22B
Debt / Equity	5.65x	3.71x	1.32x	1.52x	2.22x	2.78x	1.56x	1.34x	1.16x	0.98x
Debt / EBITDA	2.93x	2.67x	2.40x	2.47x	3.82x	6.19x	3.58x	9.51x	4.30x	4.77x
Net Debt / EBITDA	2.68x	2.35x	1.80x	2.21x	1.81x	2.35x	2.30x	5.61x	2.90x	3.70x
Interest Coverage	5.66x	6.68x	9.07x	7.95x	4.67x	7.35x	10.21x	4.12x	3.31x	2.86x
Total Equity+	212.1M	360.7M	934M	832.6M	1B	1.13B	1.26B	4.1B	4.09B	4.23B
Equity Growth %	1.12%	0.7%	1.59%	-0.11%	0.2%	0.13%	0.12%	2.24%	-0%	0.03%
Book Value per Share	0.58	0.98	2.52	2.26	2.69	3.03	3.39	10.17	8.09	8.36
Total Shareholders' Equity	212.3M	360.6M	933.7M	832.2M	1B	1.13B	1.26B	4.1B	4.09B	4.23B
Common Stock	18.2M	18.3M	18.4M	18.4M	18.5M	18.5M	18.6M	25M	25M	25M
Retained Earnings	1.97B	2.11B	2.77B	2.64B	2.84B	3.03B	3.17B	6.3B	3.52B	3.61B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-1.77B	-1.76B	-1.85B	-1.82B	-1.87B	-1.93B	-1.93B	-2.23B	532M	583M
Minority Interest	-200K	100K	300K	400K	600K	900K	-500K	-1M	-1M	-1M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	320M	361.2M	379.8M	363.6M	493.3M	548M	563M	600M	737M	678M
Operating CF Margin %	0.18%	0.17%	0.16%	0.15%	0.18%	0.2%	0.19%	0.16%	0.14%	0.12%
Operating CF Growth %	0.19%	0.13%	0.05%	-0.04%	0.36%	0.11%	0.03%	0.07%	0.23%	-0.08%
Net Income	124.3M	167.8M	683M	-98.3M	283.5M	185.9M	468.32M	383.63M	625M	307M
Depreciation & Amortization	191.9M	231.7M	187.7M	192.1M	325.9M	311M	400.84M	476.82M	592M	477M
Stock-Based Compensation	300K	900K	1.3M	2.3M	2.6M	0	10M	17M	27M	0
Deferred Taxes	2.5M	37.3M	46.6M	23M	-676M	0	-643.5M	-851M	0	0
Other Non-Cash Items	6.3M	-1M	-444.3M	269.8M	568.3M	2.1M	308.53M	576.55M	-444M	-42M
Working Capital Changes	-2.8M	-38.2M	-47.9M	-25.3M	-11M	49M	18.8M	-3M	-63M	-64M
Change in Receivables	-4.8M	-34.6M	-46.1M	-14.4M	-38.2M	-40.9M	58.7M	5M	-29M	-38M
Change in Inventory	2M	-3.6M	-1.8M	-10.9M	-3.6M	-23.3M	-3.2M	-4M	-15M	-12M
Change in Payables	-5.8M	12M	21.7M	18.1M	20.2M	78.2M	-43M	-75M	-60M	0
Cash from Investing+	-531.9M	-299.5M	-14.5M	-456.8M	-91.5M	-497M	-441M	-1.2B	-416M	-373M
Capital Expenditures	-159.2M	-186.2M	-174.3M	-147.2M	-170.9M	-152.5M	-159.9M	-190M	-167M	-171M
CapEx % of Revenue	0.09%	0.09%	0.07%	0.06%	0.06%	0.05%	0.05%	0.05%	0.03%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-11M	-10.7M	-15.9M	-11M	0	-158.3M	174.6M	1M	-21M	-30M
Cash from Financing+	123.9M	-66.9M	-164.6M	-115.7M	-221.3M	229M	-417.1M	1.32B	-361M	-752M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-48.9M	-55.5M	-64.3M	-74.2M	-85.8M	0	-138.7M	-122M	-201M	-229M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-59.7M	58.9M	-23.4M	-8.1M	-97.3M	-24M	-28.4M	-94M	-3M	-9M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	160.8M	175M	205.5M	216.4M	322.4M	382.6M	407.2M	414M	526M	507M
FCF Margin %	0.09%	0.08%	0.09%	0.09%	0.12%	0.14%	0.14%	0.11%	0.1%	0.09%
FCF Growth %	0.69%	0.09%	0.17%	0.05%	0.49%	0.19%	0.06%	0.02%	0.27%	-0.04%
FCF per Share	0.44	0.47	0.56	0.59	0.87	1.03	1.09	1.03	1.04	1.00
FCF Conversion (FCF/Net Income)	2.57x	2.16x	0.56x	-3.70x	1.74x	2.95x	2.14x	2.59x	1.93x	2.21x
Interest Paid	0	0	0	0	0	0	0	0	0	180M
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	79.65%	58.48%	105.48%	-11.13%	30.93%	17.44%	21.97%	8.65%	9.31%	7.38%
Return on Invested Capital (ROIC)	14.6%	13.56%	13.93%	11.1%	9.5%	10.07%	10.65%	4.77%	6.39%	5.6%
Gross Margin	82.36%	82.65%	80.31%	79.2%	21.57%	23.41%	24.2%	26.31%	82.75%	13.36%
Net Margin	7.07%	7.73%	28.3%	-3.98%	10.6%	6.67%	8.9%	6.25%	7.09%	5.65%
Debt / Equity	5.65x	3.71x	1.32x	1.52x	2.22x	2.78x	1.56x	1.34x	1.16x	0.98x
Interest Coverage	5.66x	6.68x	9.07x	7.95x	4.67x	7.35x	10.21x	4.12x	3.31x	2.86x
FCF Conversion	2.57x	2.16x	0.56x	-3.70x	1.74x	2.95x	2.14x	2.59x	1.93x	2.21x
Revenue Growth	1.05%	23.26%	11.26%	2.49%	8.25%	4.23%	5.9%	25.73%	44.72%	1.13%

Revenue by Geography

	2022	2023	2024
UNITED STATES	1.79B	3.22B	3.18B
UNITED STATES Growth	-	80.29%	-1.34%
Other Countries	1.01B	1.14B	1.16B
Other Countries Growth	-	12.52%	2.02%
FRANCE	338M	380M	392M
FRANCE Growth	-	12.43%	3.16%
AUSTRALIA	166M	181M	194M
AUSTRALIA Growth	-	9.04%	7.18%
SPAIN	-	72M	76M
SPAIN Growth	-	-	5.56%
INDIA	58M	59M	68M
INDIA Growth	-	1.72%	15.25%
Foreign countries	3.42B	-	-
Foreign countries Growth	-	-	-
Country of domicile	296M	-	-
Country of domicile Growth	-	-	-
Spain	56M	-	-
Spain Growth	-	-	-

Frequently Asked Questions

Valuation & Price

Rentokil Initial plc (RTO) has a price-to-earnings (P/E) ratio of 52.0x. This suggests investors expect higher future growth.

Growth & Financials

Rentokil Initial plc (RTO) reported $11.50B in revenue for fiscal year 2024. This represents a 352% increase from $2.54B in 2011.

Rentokil Initial plc (RTO) grew revenue by 1.1% over the past year. Growth has been modest.

Yes, Rentokil Initial plc (RTO) is profitable, generating $691.0M in net income for fiscal year 2024 (5.6% net margin).

Dividend & Returns

Yes, Rentokil Initial plc (RTO) pays a dividend with a yield of 1.45%. This makes it attractive for income-focused investors.

Rentokil Initial plc (RTO) has a return on equity (ROE) of 7.4%. This is below average, suggesting room for improvement.

Rentokil Initial plc (RTO) generated $1.17B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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