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Reckitt (RKT) AI Stock Analysis
Reckitt
(LSE:RKT)
Overall score reflects strengthened fundamentals (higher profitability and sharply improved leverage) and an attractive valuation (low P/E and high dividend yield). The rating is held back by cash flow/cash conversion weakness and only neutral-to-mixed near-term technical signals, while the latest earnings call supports a steady outlook with reiterated guidance despite ongoing cost and category headwinds.
Reckitt (RKT) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 34.25B
- Dividend Yield
- 6.16%
- Average Volume (3M)
- 1.53M
- Price to Earnings (P/E)
- 12.1
- Beta (1Y)
- 0.99
- Revenue Growth
- -2.49%
- EPS Growth
- 133.91%
- Country
- UK
- Employees
- 36,200
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Household & Personal Products
Reckitt Business Overview & Revenue Model
Company Description
Reckitt Benckiser Group Plc engages in the manufacture and trade of consumer brand products including Air Wick, Calgon, Cillit Bang, Clearasil, Dettol, Durex, Enfamil, Finish, Gaviscon, Harpic, Lysol, Mortein, Mucinex, Nurofen, Nutramigen, Strepsils,...
How the Company Makes Money
Reckitt makes money primarily by selling branded consumer products to retailers, distributors/wholesalers, pharmacies, and e-commerce platforms, which then sell to end consumers. Revenue is generated across two main segments: (1) Health: sales of con...
Reckitt Earnings Call Summary
The call presented clear evidence of operational recovery and momentum: strong Q2 acceleration, notable outperformance in emerging markets (especially China), successful innovation rollouts, improved-than-expected margin performance versus prior guidance, and continued disciplined capital returns and cost transformation under the Fuel for Growth program. Offsetting these positives were persistent input cost and commodity pressures, regional supply disruptions (Middle East), category challenges in Household Care/Auto Dish and a near-term EPS and free cash flow hit from the Essential Home divestment. Management reiterated full-year guidance and laid out specific mitigation actions, suggesting confidence in execution. Overall, the positive developments (broad-based revenue acceleration, emerging markets strength, innovation wins, and cost program progress) materially outweigh the nearer-term lowlights and structural headwinds.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Reckitt reiterated unchanged full‑year guidance for Core Reckitt of 4–5% like‑for‑like net revenue growth and reiterated adjusted operating profit margin guidance for Core Reckitt and Mead Johnson of 24.9–25.6% for 2026 (with a significantly stronger second half), while expecting emerging markets to deliver H2 growth similar to H1 (emerging markets H1 +8.5% and Q2 +9.4%, or +10.3% excl. Russia Hygiene); Europe is expected to return to like‑for‑like growth in H2 with sequential improvement, North America to be stronger in H2 and weighted to Q4, and seasonal OTC incidence is planned slightly higher than the prior season. Management confirmed Fuel for Growth remains on track (total program cost ~£1.0bn, ~£350m in 2026) with fixed costs at 20.1% of net revenue in H1 and a target of below 19% by end‑2027, announced a new £500m 12‑month share buyback and a 5% interim dividend increase, and flagged H1 metrics including adjusted EPS 152.1p (‑9.7% y/y), free cash flow £419m (cash conversion 42%), net debt/EBITDA 2.5x and cumulative shareholder returns of ~£6.4bn since the strategy launch.
Reckitt Financial Statement Overview
Summary
Strong 2025 profitability step-up (net margin ~22%, EBIT margin ~30%) and materially improved leverage (debt-to-equity ~0.13; ROE ~41%) support a solid financial profile. The main offset is weaker 2025 cash conversion (operating cash flow down and FCF not scaling with earnings), which is a near-term quality watch item.
Income Statement
78PositiveBalance Sheet
74PositiveCash Flow
63Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.63B | 14.21B | 14.17B | 14.61B | 14.45B | 13.23B |
| Gross Profit | 8.11B | 8.49B | 8.60B | 8.76B | 8.36B | 7.69B |
| EBITDA | 4.80B | 3.92B | 2.95B | 3.19B | 3.90B | 436.00M |
| Net Income | 2.88B | 3.18B | 1.43B | 1.64B | 2.33B | -32.00M |
Balance Sheet | ||||||
| Total Assets | 24.43B | 25.07B | 25.30B | 27.14B | 28.74B | 26.95B |
| Cash, Cash Equivalents and Short-Term Investments | 878.00M | 1.95B | 760.00M | 1.39B | 1.16B | 1.26B |
| Total Debt | 10.16B | 8.43B | 8.66B | 8.54B | 8.88B | 9.56B |
| Total Liabilities | 18.72B | 17.29B | 18.58B | 18.67B | 19.26B | 19.49B |
| Stockholders Equity | 5.67B | 7.75B | 6.70B | 8.45B | 9.44B | 7.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.55B | 1.76B | 2.22B | 2.19B | 1.95B | 1.32B |
| Operating Cash Flow | 2.10B | 2.30B | 2.68B | 2.64B | 2.40B | 1.70B |
| Investing Cash Flow | 1.14B | 1.20B | -396.00M | -466.00M | -139.00M | 239.00M |
| Financing Cash Flow | -3.22B | -2.43B | -2.71B | -1.81B | -2.38B | -2.29B |
Reckitt Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RKT, the sentiment is Positive. The current price of 5408.00 is above the 20-day moving average (MA) of 5312.30, above the 50-day MA of 5153.02, and above the 200-day MA of 5120.76, indicating a bullish trend. The MACD of 77.05 indicates Positive momentum. The RSI at 56.45 is Neutral, neither overbought nor oversold. The STOCH value of 44.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RKT.
Reckitt Peers Comparison
Overall Rating
GB:ULVR80Outperform
GB:CCH75Outperform
GB:BATS74Outperform- GB:RKT73Outperform
GB:ABF66Neutral
GB:IMB53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:ULVR | 80Outperform | GBP 104.93B | 13.75 | 58.26% | 3.39% | -20.44% | 4.96% |
| GB:CCH | 75Outperform | GBP 17.14B | 20.37 | 25.10% | 2.18% | 12.76% | 12.70% |
| GB:BATS | 74Outperform | GBP 98.70B | 15.73 | 13.38% | 5.31% | 0.70% | 110.32% |
| GB:RKT | 73Outperform | GBP 34.25B | 12.13 | 42.87% | 6.16% | -2.49% | 133.91% |
| GB:ABF | 66Neutral | GBP 13.44B | 14.35 | 8.44% | 3.28% | -2.16% | -24.87% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| GB:IMB | 53Neutral | GBP 21.98B | 13.79 | 39.24% | 5.57% | 4.73% | -28.94% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:RKT | Reckitt | 5408.00 | -177.28 | -3.17% | |
| GB:ABF | Associated British Foods Plc (UK) | 1922.50 | -287.54 | -13.01% | |
| GB:BATS | British American Tobacco (UK) | 4592.00 | 805.36 | 21.27% | |
| GB:CCH | Coca Cola HBC | 4704.00 | 1328.34 | 39.35% | |
| GB:IMB | Imperial Brands (UK) | 2938.00 | 46.35 | 1.60% | |
| GB:ULVR | Unilever Plc (UK) | 4870.50 | 110.65 | 2.32% |
Reckitt Corporate Events
Reckitt Director Deborah Waterhouse to Take Helm at CSL Limited
PositiveReckitt Benckiser Group plc has announced that non-executive director Deborah Waterhouse will become chief executive officer and managing director of CSL Limited from 1 February 2027. Her move to lead the Australia-listed biotech CSL underscores the...
Reckitt boosts treasury stock with October share buybacks
NeutralReckitt Benckiser has continued its share buyback programme, purchasing 131,181 ordinary shares between 12 and 16 October 2026 from Citigroup Global Markets. The shares, acquired under previously granted shareholder authority, will be held in treasur...
Reckitt Benckiser Updates Market on October Share Buybacks
PositiveReckitt Benckiser Group plc has continued its share buyback programme, repurchasing 164,672 ordinary shares between 5 and 9 October 2026 through Citigroup Global Markets Limited under authority granted at its May 2026 AGM. The shares, bought at price...
Reckitt Tightens Free Float with Further Treasury Share Buybacks
PositiveReckitt Benckiser has continued its share buyback programme, repurchasing around 171,000 ordinary shares between 28 September and 2 October 2026 at prices mostly just under 5,000 pence and placing the shares into treasury. This move reduces the free...
Reckitt updates total voting rights for shareholders
NeutralReckitt Benckiser Group plc reported that as of 30 September 2026 it has 674,005,752 issued ordinary shares, of which 40,095,817 are held in treasury with suspended voting rights. This leaves a total of 633,909,935 voting rights attached to shares cu...
Reckitt Buys Back 168,800 Shares, Updates Voting Rights Count
PositiveReckitt Benckiser Group has continued its share buyback activity, repurchasing 168,800 ordinary shares between 21 and 25 September 2026 via Citigroup Global Markets within the authority granted at its May 2026 annual meeting. The acquired shares will...
Reckitt CEO and CFO Boost Stakes via Dividend Reinvestment Plan
PositiveReckitt Benckiser Group plc, a leading global consumer goods company listed on the London Stock Exchange, is known for its health, hygiene and home brands sold across international markets. The group operates within the consumer staples sector and ma...
Reckitt Benckiser Adds to Treasury Stock in Ongoing Share Buyback
PositiveReckitt Benckiser has continued its share buyback programme, repurchasing 162,000 ordinary shares between 14 and 18 September 2026 from Citigroup Global Markets under an AGM-authorised mandate. The shares, bought at prices around 4,921 to 5,132 pence...
Reckitt Tightens Free Float with Latest Treasury Share Buyback
PositiveReckitt Benckiser has continued its share buyback programme, repurchasing 159,850 ordinary shares between 7 and 11 September 2026 via Citigroup Global Markets and holding the shares in treasury. The transactions, conducted under existing shareholder...
Reckitt Tightens Capital Structure With Treasury Share Buyback
PositiveReckitt Benckiser Group plc has repurchased 114,328 of its ordinary shares between 1 and 4 September 2026 from Citigroup Global Markets in line with authority granted at its May annual meeting, and will hold the bought-back shares in treasury. The mo...
Reckitt Updates Share Capital and Voting Rights Structure
NeutralReckitt has reported that, as of 31 August 2026, it has 674,005,752 issued ordinary shares, of which 39,400,855 are held in treasury with suspended voting rights. This leaves a total of 634,604,897 voting rights, a key reference figure for investors...
Reckitt Increases Treasury Stock After Latest Share Buyback
PositiveReckitt Benckiser Group plc has repurchased just over 155,000 of its ordinary shares between 24 and 28 August 2026 from Citigroup Global Markets, under a previously authorised buyback programme, and will hold the repurchased stock in treasury. Follow...
Reckitt Non-Executive Directors Increase Holdings with Share Purchases
PositiveReckitt Benckiser Group plc disclosed that non-executive directors Gavin Patterson and Deborah Waterhouse purchased ordinary shares in the company on 26 August 2026. Patterson acquired 191 shares at £51.83 each, while Waterhouse bought 152 share...
Reckitt Tightens Capital Base With Latest Share Buyback Tranche
NeutralReckitt Benckiser Group has continued its capital management programme by repurchasing ordinary shares on the market between 17 and 21 August 2026 under authority granted by shareholders. The purchases, executed via Citigroup Global Markets, involved...
Reckitt Tightens Capital Base With New Share Buyback
PositiveReckitt Benckiser Group plc has repurchased a series of its own ordinary shares between 10 August and 14 August 2026, acquiring tranches of around 28,000 to 31,000 shares per day via Citigroup Global Markets. The shares, bought under an existing shar...
Reckitt’s Mead Johnson Unit Cuts 2044 Debt and Drops Parent Guarantee
PositiveReckitt’s subsidiary Mead Johnson Nutrition Company has completed an any-and-all cash tender offer for its 4.600% Senior Notes due 2044, setting total consideration at $898 per $1,000 of principal plus accrued interest. The offer resulted in $4...
Reckitt Increases Treasury Stock After August Share Buyback
NeutralReckitt Benckiser Group plc has repurchased 84,700 ordinary shares between 5 and 7 August 2026 through Citigroup Global Markets, under authority granted at its May 2026 AGM, and will hold the repurchased stock in treasury. Following these transaction...
Reckitt’s Mead Johnson Launches Tender Offer for 2044 Notes and Seeks Indenture Changes
NeutralReckitt’s wholly owned subsidiary Mead Johnson Nutrition Company has launched an any-and-all cash tender offer for its $500 million 4.600% senior notes due 2044, coupled with a consent solicitation to amend the governing indenture.The proposed...
Reckitt launches £500m share buyback to boost shareholder returns
PositiveReckitt Benckiser Group plc has launched a new share buyback programme of up to £500 million over the next 12 months, aimed at increasing returns to shareholders and reducing the company’s share capital. The programme begins with a first t...
Reckitt updates share capital and total voting rights
NeutralReckitt Benckiser has reported that, as of 31 July 2026, it has 674,005,752 issued ordinary shares, of which 38,922,325 are held in treasury and carry no voting rights. This leaves a total of 635,083,427 voting shares in issue, a figure that sharehol...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 29, 2026