Rentokil Initial PLC (RTO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Rentokil Initial PLC stock (RTO) is currently trading at $31.41. Rentokil Initial PLC PE ratio is 54.79. Rentokil Initial PLC PS ratio (Price-to-Sales) is 2.33. Analyst consensus price target for RTO is $35.77. WallStSmart rates RTO as Underperform.
- RTO PE ratio analysis and historical PE chart
- RTO PS ratio (Price-to-Sales) history and trend
- RTO intrinsic value — DCF, Graham Number, EPV models
- RTO stock price prediction 2025 2026 2027 2028 2029 2030
- RTO fair value vs current price
- RTO insider transactions and insider buying
- Is RTO undervalued or overvalued?
- Rentokil Initial PLC financial analysis — revenue, earnings, cash flow
- RTO Piotroski F-Score and Altman Z-Score
- RTO analyst price target and Smart Rating
Rentokil Initial
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RTO Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Rentokil Initial PLC (RTO)
RTO trades 22% above its Graham fair value of $26.68, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Rentokil Initial PLC (RTO) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, eps growth. Concerns around return on equity and operating margin. Fundamentals are solid but monitor weak areas for improvement.
Rentokil Initial PLC (RTO) Key Strengths (3)
Growing significantly faster than its price suggests
Earnings per share surging 88.30% year-over-year
Large-cap company with substantial market presence
Supporting Valuation Data
Rentokil Initial PLC (RTO) Areas to Watch (7)
Revenue declining -3.50%, a shrinking business
Near-zero operating margins, business under pressure
Low profitability relative to shareholder equity
Thin profit margins with limited profitability
Low institutional interest, mostly retail-driven
Revenue is fairly priced at 2.33x sales
Fairly priced relative to book value
Supporting Valuation Data
Rentokil Initial PLC (RTO) Detailed Analysis Report
Overall Assessment
This company scores 53/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.7/10) while 7 fall into concern territory (avg 3.4/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, EPS Growth, Market Cap. Valuation metrics including PEG Ratio (0.92) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 88.30%.
The Bear Case
The primary concerns are Revenue Growth, Operating Margin, Return on Equity. Some valuation metrics including Price/Sales (2.33), Price/Book (2.82) suggest expensive pricing. Growth concerns include Revenue Growth at -3.50%, which may limit upside. Profitability pressure is visible in Return on Equity at 5.19%, Operating Margin at 4.74%, Profit Margin at 6.80%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 5.19% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -3.50% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, EPS Growth) and negatives (Revenue Growth, Operating Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
RTO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
RTO's Price-to-Sales ratio of 2.33x sits near its historical average of 2.17x (62th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 77% below its historical high of 10x set in Oct 2007, and 675% above its historical low of 0.3x in Jan 2009. Over the past 12 months, the PS ratio has expanded from ~1.1x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Rentokil Initial PLC (RTO) · INDUSTRIALS › SPECIALTY BUSINESS SERVICES
The Big Picture
Rentokil Initial PLC operates as a stable business with moderate growth and solid fundamentals. Revenue reached 6.9B with 350% decline year-over-year. Profit margins are thin at 6.8%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 519.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 298M in free cash flow and 371M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 350% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Margin expansion: can Rentokil Initial PLC push profit margins above 15% as the business scales?
Valuation compression risk at a P/E of 54.8x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor SPECIALTY BUSINESS SERVICES industry trends, competitive moves, and regulatory changes that could impact Rentokil Initial PLC.
Bottom Line
Rentokil Initial PLC offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Rentokil Initial PLC(RTO)
NYSE
INDUSTRIALS
SPECIALTY BUSINESS SERVICES
USA
Rentokil Initial plc offers route-based services in North America, the UK, the rest of Europe, Asia, the Pacific and internationally. The company is headquartered in Crawley, the United Kingdom.