Latest Ratios: P/E Ratio 21.0x · EV/EBITDA 9.2x · ROE 9.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.0B | $14.9B | $12.8B | $14.5B | $12.4B | $15.0B | $13.3B | $11.3B | $8.0B | $8.1B | $5.0B |
| Enterprise Value | $13.8B | $18.7B | $16.0B | $17.6B | $15.6B | $16.3B | $14.5B | $12.4B | $9.1B | $9.0B | $6.2B |
| P/E Ratio → | 21.00 | 31.01 | 42.20 | 38.15 | 51.35 | 57.33 | 71.20 | 40.63 | — | 11.86 | 29.67 |
| P/S Ratio | 1.45 | 2.16 | 2.36 | 2.69 | 3.34 | 5.07 | 4.76 | 4.18 | 3.22 | 3.37 | 2.32 |
| P/B Ratio | 1.84 | 2.72 | 3.03 | 3.54 | 3.03 | 11.85 | 11.73 | 11.31 | 9.57 | 8.70 | 13.95 |
| P/FCF | 13.04 | 19.40 | 25.25 | 27.49 | 29.98 | 36.79 | 34.67 | 35.17 | 36.82 | 39.53 | 28.75 |
| P/OCF | 10.27 | 15.27 | 18.88 | 19.62 | 20.55 | 26.41 | 24.20 | 22.98 | 21.92 | 21.39 | 13.93 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.71 | 2.95 | 3.28 | 4.21 | 5.51 | 5.18 | 4.56 | 3.68 | 3.75 | 2.86 |
| EV / EBITDA | 9.17 | 12.42 | 18.43 | 16.04 | 27.19 | 29.65 | 28.46 | 26.19 | 20.81 | 18.64 | 13.38 |
| EV / EBIT | 14.64 | 19.81 | 23.91 | 25.87 | 31.91 | 43.06 | 47.72 | 42.20 | 32.16 | 30.02 | 24.13 |
| EV / FCF | — | 24.35 | 31.59 | 33.54 | 37.77 | 39.97 | 37.79 | 38.43 | 42.07 | 44.03 | 35.48 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.8% | 32.8% | 13.4% | 82.8% | 81.0% | 24.7% | 79.6% | 21.3% | 79.2% | 80.3% | 82.7% |
| Operating Margin | 13.7% | 13.7% | 10.1% | 11.6% | 8.5% | 11.7% | 10.5% | 9.8% | 9.9% | 12.1% | 10.7% |
| Net Profit Margin | 6.8% | 6.8% | 5.6% | 7.1% | 6.2% | 8.9% | 6.7% | 10.5% | -4.0% | 28.3% | 7.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.7% | 9.7% | 7.4% | 9.3% | 8.7% | 22.0% | 17.4% | 30.9% | -11.1% | 105.5% | 58.5% |
| ROA | 3.8% | 3.8% | 2.8% | 3.3% | 2.9% | 5.3% | 3.8% | 7.7% | -3.2% | 24.2% | 7.1% |
| ROIC | 8.5% | 8.5% | 5.6% | 6.4% | 4.8% | 10.7% | 10.1% | 9.9% | 9.6% | 12.9% | 12.2% |
| ROCE | 9.9% | 9.9% | 6.6% | 7.1% | 5.3% | 11.9% | 11.0% | 12.3% | 11.6% | 13.7% | 14.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.12 | 1.12 | 0.98 | 1.16 | 1.32 | 1.56 | 2.78 | 2.22 | 1.52 | 1.32 | 3.71 |
| Debt / EBITDA | 4.06 | 4.06 | 4.77 | 4.30 | 9.38 | 3.58 | 6.19 | 4.69 | 2.89 | 2.54 | 2.88 |
| Net Debt / Equity | — | 0.69 | 0.76 | 0.78 | 0.79 | 1.03 | 1.06 | 1.05 | 1.36 | 0.99 | 3.26 |
| Net Debt / EBITDA | 2.52 | 2.52 | 3.70 | 2.90 | 5.61 | 2.37 | 2.35 | 2.22 | 2.60 | 1.91 | 2.54 |
| Debt / FCF | — | 4.94 | 6.34 | 6.06 | 7.79 | 3.19 | 3.12 | 3.26 | 5.25 | 4.50 | 6.73 |
| Interest Coverage | 15.75 | 15.75 | 3.49 | 3.61 | 6.36 | 11.12 | 7.58 | 5.39 | 5.13 | 6.33 | 5.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.16 | 1.16 | 0.81 | 1.05 | 1.14 | 0.97 | 1.05 | 1.01 | 0.60 | 1.21 | 1.21 |
| Quick Ratio | 1.07 | 1.07 | 0.72 | 0.97 | 1.05 | 0.87 | 1.00 | 0.95 | 0.51 | 1.09 | 1.09 |
| Cash Ratio | 0.70 | 0.70 | 0.36 | 0.60 | 0.76 | 0.48 | 0.79 | 0.66 | 0.11 | 0.44 | 0.25 |
| Asset Turnover | — | 0.48 | 0.52 | 0.48 | 0.31 | 0.68 | 0.50 | 0.64 | 0.80 | 0.78 | 0.85 |
| Inventory Turnover | 15.14 | 15.14 | 20.57 | 4.48 | 2.91 | 4.39 | 4.44 | 19.71 | 4.98 | 5.63 | 4.70 |
| Days Sales Outstanding | — | 61.62 | 61.03 | 59.76 | 81.57 | 65.12 | 66.03 | 58.47 | 60.91 | 56.63 | 53.22 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.0% | 2.0% | 1.8% | 1.4% | 1.0% | 0.9% | — | 0.8% | 0.9% | 0.8% | 1.1% |
| Payout Ratio | 64.7% | 64.7% | 74.6% | 52.8% | 52.6% | 52.9% | — | 30.2% | — | 9.4% | 33.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 3.2% | 2.4% | 2.6% | 1.9% | 1.7% | 1.4% | 2.5% | — | 8.4% | 3.4% |
| FCF Yield | 7.7% | 5.2% | 4.0% | 3.6% | 3.3% | 2.7% | 2.9% | 2.8% | 2.7% | 2.5% | 3.5% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.0% | 2.0% | 1.8% | 1.4% | 1.0% | 1.0% | 0.0% | 0.8% | 0.9% | 0.8% | 1.1% |
| Shares Outstanding | — | $507M | $506M | $505M | $403M | $373M | $373M | $372M | $368M | $370M | $369M |
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Quick answers to the most common questions about buying RTO stock.
Rentokil Initial plc's current P/E ratio is 21.0x. The historical average is 39.4x. This places it at the 15th percentile of its historical range.
Rentokil Initial plc's current EV/EBITDA is 9.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.7x.
Rentokil Initial plc's return on equity (ROE) is 9.7%. The historical average is 96.0%.
Based on historical data, Rentokil Initial plc is trading at a P/E of 21.0x. This is at the 15th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Rentokil Initial plc's current dividend yield is 3.01% with a payout ratio of 64.7%.
Rentokil Initial plc has 32.8% gross margin and 13.7% operating margin. Operating margin between 10-20% is typical for established companies.
Rentokil Initial plc's Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Margin compression from integration
Premium Valuation Amidst Margin Uncertainty
RTO trades at a forward P/E of 22.58 and EV/EBITDA of 12.22, a significant discount to pure-play peer Rollins but a premium to diversified services peers like ABM, suggesting the market is pricing in a margin recovery that has yet to materialize.
The valuation discount to Rollins (Forward P/E 22.58 vs. 33.38) appears to reflect the conglomerate complexity and lower margin profile of RTO's multi-service model. However, the premium to ABM (Forward P/E 22.58 vs. 18.22) indicates the market still assigns value to RTO's stronger brand and recurring revenue base. The PEG ratio of 1.81 suggests the market is pricing in moderate growth, which may be optimistic given the recent -5.47% YoY revenue decline and ongoing integration headwinds.
Structurally Low Margins Under Pressure
RTO's operating margin of 9.7% in 2026Q2 is significantly below the 14.0% net margin of Rollins, indicating that the company's cost structure, likely inflated by integration expenses and a less efficient route density, is preventing it from translating revenue into bottom-line profit at peer levels.
The gross margin of 14.0% is exceptionally low for a service business and suggests that direct labor and consumables are consuming a disproportionate share of revenue, leaving minimal buffer for operating expenses. The compression from a 13.9% operating margin in 2025Q4 to 9.7% in 2026Q2, despite stable gross margins, points to rising SG&A or integration costs that are eroding profitability. This margin profile makes RTO highly vulnerable to wage inflation and limits its ability to invest in growth initiatives without sacrificing near-term earnings.
Depressed Returns on Invested Capital
RTO's ROIC of 2.8% in 2026Q2 is dramatically below Rollins' 25.1%, indicating that the capital deployed in the Terminix acquisition is not yet generating returns commensurate with its cost, a critical concern given the elevated debt load.
The ROIC trend has been volatile, ranging from 0.9% to 5.8% over the past ten quarters, with no clear upward trajectory. This volatility, combined with the current low level, suggests that the company is struggling to efficiently deploy the massive capital base acquired through M&A. The ROE of 3.6% is similarly depressed, confirming that the equity base is not generating adequate returns for shareholders, a situation that may persist until integration synergies are fully realized and route density improves.
Elevated Leverage Constrains Flexibility
With a debt-to-equity ratio of 1.11 and net debt of $3.7B, RTO's balance sheet is significantly more leveraged than its pre-acquisition state, and the interest coverage ratio of 4.46x, while adequate, leaves limited room for error if margins fail to recover.
The leverage profile has stabilized post-Terminix, but the D/E ratio of 1.11 is still materially higher than the 0.76 of Rollins, reflecting the acquisition-driven capital structure. The interest coverage ratio of 4.46x is comfortable but has declined from a peak of 12.40x in 2021Q4, indicating that debt service is consuming a larger portion of operating income. This elevated leverage may limit RTO's financial flexibility for further M&A or share repurchases until the integration is complete and free cash flow generation becomes more predictable.
The Misleading Stability of the Current Ratio
The current ratio of 1.06 appears adequate but is misleading for RTO's business model, as it is inflated by a large cash balance that is likely earmarked for integration costs and debt servicing, not available for general operations.
For a route-based service company with minimal inventory, the current ratio is a poor measure of liquidity. The quick ratio of 0.98, which excludes inventory, is a more relevant metric and shows that RTO's immediate liquidity is tight. Furthermore, the cash balance of $2.5B, while substantial, must be viewed in the context of $6.2B in total debt and ongoing integration expenses. Analysts should instead focus on the free cash flow margin of 10.2% and the cash conversion cycle, which at -2 days indicates efficient working capital management, as better indicators of the company's true liquidity and operational health.