Reckitt Benckiser Group (RBGLD) AI Stock Analysis

• Market Cap: $56.48B
• Dividend Yield: 3.33%
• Average Volume (3M): 20.41K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.06
• 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): 0.40
• Shares Outstanding: 3,223,767,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 20,409
• PEG Ratio: -2.25
• Price to Book (P/B): 5.23
• Price to Sales (P/S): 2.47
• P/FCF Ratio: 15.80
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 3.56
• Enterprise Value/Gross Profit: 5.84
• Enterprise Value/Ebitda: 17.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1
• Revenue Forecast (FY): $18.32B

• Rating: 78 Outperform
• Price Target: $20.00 ▲(27.23% Upside)
• Action: Reiterated Date: 08/19/25
• Date: Action: Reiterated 08/19/25

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.

Positive Factors

Brand portfolio & multi-channel distribution

A diversified portfolio of global consumer brands and multi-channel distribution provides durable pricing power, customer loyalty and scale advantages. These traits support steady demand, margin resilience and easier product innovation rollout across geographies over the next several quarters.

Robust cash generation

Strong operating cash flow and a FCF-to-net-income ratio above 1 indicate sustainable internal funding for capex, R&D, dividends and buybacks. This cash convertibility increases financial resilience, enabling strategic investment and shareholder returns despite cyclical headwinds.

Emerging markets growth and structural cost savings

Double-digit emerging market growth combined with a program that materially reduced fixed costs improves structural revenue diversification and long-term margin potential. These durable shifts reduce reliance on developed markets and sustainably lift adjusted operating profitability.

Negative Factors

Recent revenue contraction

A year-over-year revenue decline signals underlying demand or share challenges that can erode growth unless reversed. Slower top-line trends constrain long-term earnings power and increase reliance on cost cuts or portfolio actions to sustain profit growth over the coming months.

Segment and regional weaknesses

Declines in a major region and key product lines are structural risks: loss of momentum in North America and shrinking nutrition/home categories reduce scale and margin diversity. Recovery may require product repositioning, increased marketing or reallocation of resources, taking time to restore growth.

Moderate leverage and shrinking asset base

Moderate leverage and a declining asset base limit financial flexibility for acquisitions or large investments and raise sensitivity to cashflow shocks. Over time this can constrain strategic optionality and increase refinancing or liquidity risk if operating performance softens.

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 branded consumer products in health, hygiene, and nutrition sectors. The company employs a multi-channel distribution strategy, selling products through retailers, e-commerce platforms, and direct-to-consumer channels. Key revenue streams include over-the-counter health products, household cleaning agents, and personal care items. Additionally, RBGLY benefits from strong brand loyalty and recognition, allowing it to maintain premium pricing on many of its products. Strategic partnerships with retailers and distributors enhance product availability and market penetration. The company also invests in innovation and product development to stay competitive, adapting to consumer trends and preferences, which further drives sales and revenue growth.

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: Positive
• Last Price: 15.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBGLD, the sentiment is Positive. The current price of 15.72 is below the 20-day moving average (MA) of 17.30, below the 50-day MA of 16.77, and above the 200-day MA of 15.24, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 32.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBGLD.

Reckitt Benckiser Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBGLD	78 Outperform	$56.48B	35.72	17.21%	3.33%	0.29%	-14.19%
PG	74 Outperform	$388.57B	24.77	31.58%	2.92%	1.23%	17.97%
CHD	73 Outperform	$24.82B	34.77	17.62%	1.38%	1.45%	42.04%
UL	69 Neutral	$160.38B	23.41	32.63%	3.74%	-0.30%	-14.60%
CL	65 Neutral	$79.47B	37.72	1602.26%	2.67%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	61 Neutral	$36.99B	18.37	147.22%	5.03%	-10.04%	-23.41%