Rentokil Initial (RTO) AI Stock Analysis

• Market Cap: $12.19B
• Dividend Yield: 2.74%
• Average Volume (3M): 744.88K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.96
• Revenue Growth: 1.56%
• EPS Growth: -32.50%
• Country: US
• Employees: 68,485
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.62
• Shares Outstanding: 505,207,980
• 10 Day Avg. Volume: 578,918
• 30 Day Avg. Volume: 744,881
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 3.03
• Enterprise Value/Gross Profit: 22.72
• Enterprise Value/Ebitda: 16.66
• 1Y Price Target: $26.00
• Price Target Upside: 7.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $26.00 ▲(7.88% Upside)

Rentokil Initial's strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and profitability. Technical analysis indicates short-term bearish momentum, while valuation suggests the stock may be overvalued. The absence of earnings call and corporate events data limits additional insights.

Rentokil Initial Business Overview & Revenue Model

Company Description

Rentokil Initial (RTO) is a leading global provider of pest control, hygiene, and interior landscaping services, operating in over 70 countries. The company focuses on offering comprehensive solutions to businesses and consumers to enhance public health and protect environments. Core services include pest management, washroom hygiene, and plant care, catering to a diverse range of sectors such as healthcare, food service, and hospitality.

How the Company Makes Money

Rentokil Initial generates revenue through multiple streams, primarily from its pest control and hygiene services. The company operates on a subscription-based model, where clients pay for ongoing service contracts for pest management and hygiene solutions, providing a steady and recurring income. Additionally, Rentokil Initial earns revenue from one-time services, product sales, and specialized treatments. Partnerships with businesses in various sectors, including hospitality and food production, enhance its customer base and revenue potential. The company's focus on innovation, such as the development of smart pest control technologies, also contributes to its earnings by attracting new clients and retaining existing ones.

Rentokil Initial Financial Statement Overview

Summary

Rentokil Initial exhibits strong financial performance with steady revenue growth and solid profitability margins. Although there are concerns about rising debt levels, the company maintains robust cash flow, supporting strategic investments.

Income Statement

Rentokil Initial has demonstrated steady revenue growth, with a significant increase from 2020 to 2024. The gross profit margin and net profit margin indicate healthy profitability, although there was a slight decline in EBIT and EBITDA margins between 2023 and 2024. The company's ability to maintain a high revenue growth rate and strong margins highlights its competitive positioning in the corporate services industry.

Balance Sheet

The balance sheet reflects a strong equity base with a moderate debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is stable, but there is a noticeable increase in total debt over the years. Return on equity is healthy, driven by consistent net income growth, though the rising debt level poses a potential risk if not managed carefully.

Cash Flow

Operating cash flow remains robust, supporting the company's free cash flow generation. The free cash flow to net income and operating cash flow to net income ratios are favorable, showcasing effective cash conversion. However, the free cash flow growth rate has been inconsistent, suggesting fluctuations in capital expenditures and cash management strategies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.44B	5.38B	3.71B	2.95B	2.79B
Gross Profit	726.00M	4.45B	977.00M	714.80M	653.00M
EBITDA	990.00M	1.16B	767.00M	656.00M	581.00M
Net Income	307.00M	381.00M	232.00M	263.00M	186.00M
Balance Sheet
Total Assets	10.55B	11.13B	11.92B	4.32B	5.58B
Cash, Cash Equivalents and Short-Term Investments	927.00M	1.55B	2.17B	670.00M	2.12B
Total Debt	4.14B	4.73B	5.40B	1.93B	3.14B
Total Liabilities	6.33B	7.04B	7.82B	3.06B	4.45B
Stockholders Equity	4.23B	4.09B	4.10B	1.26B	1.13B
Cash Flow
Free Cash Flow	507.00M	526.00M	414.00M	407.20M	382.60M
Operating Cash Flow	678.00M	737.00M	604.00M	567.10M	535.10M
Investing Cash Flow	-373.00M	-416.00M	-1.20B	-445.00M	-509.20M
Financing Cash Flow	-752.00M	-361.00M	1.32B	-417.10M	253.50M

Rentokil Initial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.10
• 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 RTO, the sentiment is Negative. The current price of 24.1 is below the 20-day moving average (MA) of 24.86, below the 50-day MA of 24.40, and above the 200-day MA of 23.73, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 5.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RTO.

Rentokil Initial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNF	74 Outperform	2.97B	20.52	6.98%	0.84%	4.18%	18.93%
ABM	70 Outperform	2.77B	24.62	6.33%	2.25%	4.27%	-24.06%
RTO	66 Neutral	$12.19B	36.82	5.86%	2.74%	1.56%	-32.50%
CBZ	65 Neutral	2.81B	29.98	5.77%	―	46.49%	-25.62%
BV	59 Neutral	1.25B	392.84	4.21%	―	-2.99%	-72.13%
ACTG	54 Neutral	322.13M	-53.78	-1.19%	―	62.44%	-109.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Rentokil Initial Corporate Events

Rentokil Initial Announces Change in Major Holdings Due to Security Lending

On August 7, 2025, Rentokil Initial announced a change in major holdings due to security lending, involving GIC Private Limited. This notification highlights a slight decrease in the total percentage of voting rights held by GIC, impacting the company’s shareholder structure and potentially influencing future strategic decisions.

Rentokil Initial: Change in Holdings Due to Security Lending

On July 28, 2025, Rentokil Initial plc announced a change in the nature of its holdings due to security lending, as reported by GIC Private Limited. This notification highlights a slight decrease in the percentage of voting rights held by GIC, which now stands at 6.494659% from the previous 6.500133%. This adjustment in holdings reflects ongoing strategic financial maneuvers by stakeholders and may influence the company’s governance and decision-making processes.