Reckitt Benckiser Group (RBGLY) AI Stock Analysis

• Market Cap: $51.71B
• Dividend Yield: 3.46%
• Average Volume (3M): 15.07K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.09
• Revenue Growth: 0.29%
• EPS Growth: -14.19%
• Country: US
• Employees: 37,900
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.38
• Shares Outstanding: 3,372,622,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 15,069
• PEG Ratio: -2.16
• Price to Book (P/B): 5.02
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 15.17
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 4.15
• Enterprise Value/Gross Profit: 6.81
• Enterprise Value/Ebitda: 20.89
• 1Y Price Target: $15.05
• Price Target Upside: -4.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: $17.00 ▲(8.14% Upside)

Reckitt Benckiser Group's overall stock score is driven by strong financial performance and positive technical indicators. The optimistic earnings call further supports the score, despite high valuation concerns. Challenges in specific markets and product lines are noted but are outweighed by the company's robust growth in emerging markets and cost-saving initiatives.

Reckitt Benckiser Group Business Overview & Revenue Model

Company Description

Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products in the United Kingdom, the United States, China, India, and internationally. The company offers acne treatment creams, facial washes, and cleansing pads; disinfection, hygiene, and first aid products; condoms, sex toys, and lubricants; heartburn and indigestion solutions; and cough and chest congestion, multi-symptom, and sinus remedies for adults and children under the Clearasil, Dettol, Durex, Gaviscon, and Mucinex brands. It also provides analgesics; sore throat medications; and hair removal products under the Nurofen, Strepsils, and Veet brands. In addition, the company offers fragrances and devices; water softeners; home cleaning products; dish washes; toilet cleaners; disinfectants; sprays, baits, and plug-ins for pest control; stain removals; fabric washing; and other hygiene products under the Air Wick, Calgon, Cillit Bang, Finish, Harpic, Lysol, Mortein, Vanish, and Woolite brands, as well as analgesics, adult nutrition products, iron-fortified hypoallergenic baby formula, products for joint issues, and infant and toddler nutrition products, as well as vitamins, minerals, and supplements under the Biofreeze, Airborne, Mead Johnson, Move Free, Enfamil, and Nutramigen brands. Further, it provides probiotics, sore throat pain relief products, Omega products, brain health support products, cleaning and carpet cleaning products, septic tank system treatment products, cough syrups, plant-based laundry products, probiotics, and lubricants under the Digestive Advantage, Cepacol, MegaRed, Neuriva, Easy-Off, RID-X, Delsym, Botanical Origin, Bodi-Ome, and K-Y brands. The company was founded in 1819 and is headquartered in Slough, the United Kingdom.

How the Company Makes Money

Reckitt Benckiser generates revenue primarily through the sale of its consumer products across various categories. The company's revenue model is based on direct sales through retail channels, online platforms, and distribution partnerships. Key revenue streams include health products, which encompass over-the-counter medications and dietary supplements; hygiene products, including disinfectants and personal care items; and home care products, such as laundry detergents and surface cleaners. Additionally, Reckitt Benckiser benefits from its significant investments in marketing and brand development, which help to drive consumer loyalty and repeat purchases. The company also engages in strategic partnerships and collaborations with retailers and e-commerce platforms to enhance its market reach and distribution efficiency, contributing to its overall earnings.

Reckitt Benckiser Group Financial Statement Overview

Summary

Reckitt Benckiser Group shows solid financial health with strong profitability and cash flow metrics, despite a recent dip in revenue. The balance sheet remains stable, with manageable leverage and good return on equity. While the company is well-positioned in terms of profitability and cash generation, future growth may be challenged by the declining revenue trend.

Income Statement

Over the past year, Reckitt Benckiser Group experienced a decline in total revenue from $14.61 billion to $14.17 billion, indicating a revenue contraction of approximately 2.68%. Despite this, their gross profit margin remains robust at 60.66%, underscoring effective cost management. The EBIT margin is healthy at 17.11%, although the net profit margin decreased slightly to 10.06%. Overall, the company maintains strong profitability, but the recent downturn in revenue growth is a concern.

Balance Sheet

The balance sheet shows stability with a debt-to-equity ratio of 1.29, indicating a moderate level of leverage. The equity ratio stands at 26.47%, reflecting a solid capital structure. Return on equity is calculated at 21.28%, demonstrating good returns for shareholders. However, the company's total assets have decreased, which may impact future growth potential.

Cash Flow

Reckitt Benckiser Group's cash flow statement highlights robust free cash flow to net income ratio of 1.56, emphasizing strong cash generation relative to net income. Operating cash flow slightly increased to $2.682 billion, reinforcing the company's ability to generate cash from operations. Nevertheless, the free cash flow growth rate is modest at 1.37%, suggesting limited cash flow expansion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.98B	14.17B	14.61B	14.45B	13.23B	13.99B
Gross Profit	8.51B	8.60B	8.76B	8.36B	7.69B	8.44B
EBITDA	2.78B	2.96B	3.19B	3.65B	3.02B	3.48B
Net Income	1.24B	1.43B	1.64B	2.33B	-32.00M	1.19B
Balance Sheet
Total Assets	24.62B	25.30B	27.14B	28.74B	26.95B	31.29B
Cash, Cash Equivalents and Short-Term Investments	963.00M	760.00M	1.39B	1.16B	1.26B	1.65B
Total Debt	9.29B	8.66B	8.54B	8.88B	9.56B	10.56B
Total Liabilities	18.27B	18.58B	18.67B	19.26B	19.49B	22.13B
Stockholders Equity	6.31B	6.70B	8.45B	9.44B	7.40B	9.12B
Cash Flow
Free Cash Flow	2.02B	2.22B	2.19B	1.95B	1.32B	3.12B
Operating Cash Flow	2.51B	2.68B	2.64B	2.40B	1.70B	3.52B
Investing Cash Flow	-480.00M	-396.00M	-466.00M	-139.00M	239.00M	-512.00M
Financing Cash Flow	-2.02B	-2.71B	-1.81B	-2.38B	-2.29B	-2.86B

Reckitt Benckiser Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.72
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBGLY, the sentiment is Neutral. The current price of 15.72 is above the 20-day moving average (MA) of 15.47, above the 50-day MA of 15.33, and above the 200-day MA of 13.70, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 3.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RBGLY.

Reckitt Benckiser Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBGLY	―	$51.71B	32.98	17.21%	3.46%	0.29%	-14.19%
PG	―	$349.53B	21.72	31.90%	2.79%	1.23%	17.97%
UL	―	$148.56B	24.89	28.36%	3.17%	-0.30%	-14.60%
CL	―	$61.84B	21.29	705.21%	2.69%	0.05%	3.55%
CHD	―	$19.93B	38.60	12.07%	1.39%	1.13%	-34.78%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	―	$39.88B	16.09	196.26%	4.16%	-6.89%	7.52%

Reckitt Benckiser Group Corporate Events

Reckitt Benckiser Reports Strong Half-Year Results

Reckitt Benckiser Group Plc is a global consumer goods company specializing in health, hygiene, and nutrition products. It operates in the fast-moving consumer goods sector, known for its strong brand portfolio including Dettol, Lysol, and Durex.

Reckitt Benckiser’s Earnings Call Highlights Growth and Challenges

Reckitt Benckiser Group Plc-ADR’s latest earnings call revealed a generally positive sentiment, marked by strong performance in Core Reckitt and Emerging Markets. The company has successfully gained market share and enhanced operational efficiency. However, challenges persist in the North American market and the Self Care category. Despite these hurdles, Reckitt’s strategic initiatives and financial metrics indicate a positive trajectory for the company.