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Rentokil Initial (RTO) Stock Analysis

This is a peer-relative look at Rentokil Initial (RTO): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Commercial & Professional Services peers, so every number reads in context rather than in isolation.

Company Profile

Rentokil Initial (RTO) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Rentokil Initial (RTO)
Profile ItemRTO
NameRentokil Initial plc American Depositary Shares (each representing five Ordinary Shares)
Country/RegionUnited Kingdom
GICS SectorIndustrials
GICS Industry GroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
GICS Sub-IndustryEnvironmental & Facilities Services
Market Capitalization11.87 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateNovember 18, 1996
Security TypeADR

Price Performance

Cumulative Growth

RTO
GSPC
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Rentokil Initial (RTO) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Rentokil Initial (RTO) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Rentokil Initial (RTO) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Rentokil Initial (RTO) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RTOIndustry group median
Total Return (1Y)-10.02%10.68%
Total Return (3Y, Annualized)-1.88%12.68%
Total Return (5Y, Annualized)-8.85%3.62%

Risk Profile

Drawdown History

RTO
GSPC
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Rentokil Initial (RTO) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Rentokil Initial (RTO) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Rentokil Initial (RTO) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RTOIndustry group median
Volatility (1Y, Annualized)33.85%42.02%
Beta (5Y)0.980.79
Max Drawdown (5Y)-50.93%-54.59%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. RTO is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Rentokil Initial (RTO) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RTOIndustry group median
Sharpe Ratio (1Y)-0.420.19
Sortino Ratio (1Y)-0.570.27

Profitability

ROE (TTM)

Rentokil Initial (RTO) posts ROE of 5.97%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

RTO

Commercial & Professional Services industry group

5.97%

Group distribution
Max
47.06%
Q3
25.43%
Median
14.11%
RTO
5.97%
Q1
3.92%
Min
-20.15%
Largest peers
RELX
131.86%
ADP
78.94%
CTAS
41.38%
WM
31.68%
RSG
18.48%
TRI
14.11%
RTO
5.97%
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Where Rentokil Initial (RTO) stands on ROE within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Rentokil Initial (RTO) keeps 6.70% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

RTO

Commercial & Professional Services industry group

6.70%

Group distribution
Max
23.28%
Q3
11.35%
RTO
6.70%
Median
5.65%
Q1
0.87%
Min
-8.60%
Largest peers
RELX
23.27%
ADP
20.33%
TRI
19.69%
CTAS
17.82%
RSG
12.92%
WM
11.78%
RTO
6.70%
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Where Rentokil Initial (RTO) stands on net margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Rentokil Initial (RTO) turns 12.79% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

RTO

Commercial & Professional Services industry group

12.79%

Group distribution
Max
38.50%
Q3
18.84%
RTO
12.79%
Median
10.40%
Q1
5.59%
Min
-12.00%
Largest peers
RELX
32.01%
ADP
26.73%
CTAS
24.10%
TRI
21.93%
RSG
20.29%
WM
19.08%
RTO
12.79%
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Where Rentokil Initial (RTO) stands on operating margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Rentokil Initial (RTO) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RTOIndustry group median
ROE (TTM)5.97%14.11%
ROA (TTM)4.00%5.83%
Net Margin (TTM)6.70%5.65%
Operating Margin (TTM)12.79%10.40%
Gross Margin (TTM)14.01%36.58%

Growth

Revenue Growth

Rentokil Initial (RTO) grew revenue 4.40%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Rentokil Initial (RTO): Revenue Growth across different time periods, set against Commercial & Professional Services industry-group medians.

EPS Growth

Rentokil Initial (RTO) grew earnings per share 21.70%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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Rentokil Initial (RTO): EPS Growth across different time periods, set against Commercial & Professional Services industry-group medians.

Growth Metrics

Rentokil Initial (RTO) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RTOIndustry group median
Revenue Growth (YoY)4.40%6.05%
Revenue Growth (3Y CAGR)15.40%6.33%
EPS Growth (YoY)21.70%5.05%
EPS Growth (3Y CAGR)10.00%9.63%

Financial Strength

Current Ratio (MRQ)

Rentokil Initial (RTO) has current ratio of 1.06, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

RTO

Commercial & Professional Services industry group

1.06

Group distribution
Max
3.63
Q3
2.14
Median
1.55
Q1
1.09
RTO
1.06
Min
0.45
Largest peers
CTAS
1.45
TRI
1.08
RTO
1.06
ADP
1.03
WM
0.82
RSG
0.75
RELX
0.45
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Where Rentokil Initial (RTO) stands on current ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Rentokil Initial (RTO) has debt-to-equity ratio of 1.11, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

RTO

Commercial & Professional Services industry group

1.11

Group distribution
Max
2.37
Q3
1.25
RTO
1.11
Median
0.88
Q1
0.35
Min
0.00
Largest peers
RELX
7.10
WM
2.37
RSG
1.17
RTO
1.11
ADP
1.10
CTAS
0.52
TRI
0.36
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Where Rentokil Initial (RTO) stands on debt-to-equity ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Rentokil Initial (RTO) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RTOIndustry group median
Current Ratio (MRQ)1.061.55
Debt / Equity (MRQ)1.110.88
Net Debt / EBITDA2.932.51

Dividends

Dividend Yield (TTM)

Rentokil Initial (RTO) has dividend yield of 0.53%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

RTO

Commercial & Professional Services industry group

0.53%

Group distribution
Max
4.33%
Q3
1.80%
Median
0.60%
RTO
0.53%
Q1
0.00%
Min
0.00%
Largest peers
ADP
2.21%
TRI
2.18%
RELX
1.66%
WM
1.52%
RSG
1.02%
CTAS
0.83%
RTO
0.53%
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Where Rentokil Initial (RTO) stands on dividend yield within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Rentokil Initial (RTO) has payout ratio of 97.56%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

RTO

Commercial & Professional Services industry group

97.56%

Group distribution
Max
99.58%
RTO
97.56%
Q3
41.99%
Median
17.27%
Q1
0.00%
Min
-17.94%
Largest peers
RTO
97.56%
TRI
79.09%
ADP
60.28%
RELX
53.59%
WM
48.03%
CTAS
36.88%
RSG
35.25%
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Where Rentokil Initial (RTO) stands on payout ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Rentokil Initial (RTO) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RTOIndustry group median
Dividend Yield (TTM)0.53%0.60%
Dividend Payout Ratio (TTM)97.56%17.27%

Valuation

P/E Ratio (TTM)

Rentokil Initial (RTO) trades at P/E ratio of 37.48, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

RTO

Commercial & Professional Services industry group

37.48

Group distribution
Max
49.47
RTO
37.48
Q3
33.76
Median
24.16
Q1
16.01
Min
1.89
Largest peers
CTAS
43.86
RTO
37.48
TRI
34.53
RSG
34.19
WM
31.01
ADP
26.89
RELX
24.05
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Where Rentokil Initial (RTO) stands on P/E ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Rentokil Initial (RTO) trades at 1.66 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

RTO

Commercial & Professional Services industry group

1.66

Group distribution
Max
7.17
Q3
3.35
RTO
1.66
Median
1.33
Q1
0.69
Min
0.11
Largest peers
CTAS
7.64
RELX
7.17
TRI
6.09
ADP
5.38
RSG
4.36
WM
3.60
RTO
1.66
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Where Rentokil Initial (RTO) stands on P/S ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Rentokil Initial (RTO) trades at 2.16 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

RTO

Commercial & Professional Services industry group

2.16

Group distribution
Max
11.25
Q3
6.08
Median
2.92
RTO
2.16
Q1
1.55
Min
-2.78
Largest peers
RELX
169.44
ADP
23.57
CTAS
17.07
WM
9.52
RSG
6.15
TRI
4.35
RTO
2.16
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Where Rentokil Initial (RTO) stands on P/B ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Rentokil Initial (RTO) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RTOIndustry group median
P/E Ratio (TTM)37.4824.16
P/S Ratio (TTM)1.661.33
P/B Ratio (MRQ)2.162.92
Free Cash Flow Yield (TTM)8.85%5.35%