Reckitt Benckiser Group (RBGLY) AI Stock Analysis

• Market Cap: $43.77B
• Dividend Yield: 3.33%
• Average Volume (3M): 20.41K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.18
• 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): 0.49
• Shares Outstanding: 3,220,516,400
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 20,409
• PEG Ratio: 0.09
• Price to Book (P/B): 5.08
• Price to Sales (P/S): 2.83
• P/FCF Ratio: 22.79
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.78
• Enterprise Value/Gross Profit: 4.57
• Enterprise Value/Ebitda: 8.37
• 1Y Price Target: $14.70
• Price Target Upside: -6.49% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.93
• Revenue Forecast (FY): $17.09B

• Rating: 62 Neutral
• Price Target: $15.50 ▼(-1.40% Downside)
• Action: Downgraded Date: 03/10/26
• Date: Action: Downgraded 03/10/26

The score is held back mainly by weak technical momentum (well below key moving averages with bearish MACD). Fundamentals are steady but not clean—recent revenue and cash-flow pressure plus moderate leverage offset solid profitability. Valuation is a key positive (low P/E and ~3% yield), while the latest call supports a cautiously positive outlook via 2026 growth guidance and cost programs, tempered by near-term margin/FCF and leverage headwinds.

Positive Factors

Innovation & product wins

Sustained R&D and successful new product launches (Durex Intensity, Mucinex NDA) strengthen brand premiumization and category expansion. Durable innovation capability supports long-term pricing power, shelf relevance and higher-margin product mix, aiding revenue resilience across cycles.

Emerging markets outperformance

High growth and expanding margins in Emerging Markets create durable revenue diversification and a margin tailwind. Strong execution in China and India plus online penetration reduces reliance on slower developed markets and supports sustainable top-line and profit expansion over multiple years.

Productivity program delivering savings

Meaningful fixed-cost reduction from a structured productivity program enhances operating leverage and funds targeted brand investment. If sustained, these efficiency gains can offset cost pressures, protect margins and improve cash generation through the 2–3 year execution horizon.

Negative Factors

Elevated leverage and near-term rise

Higher leverage reduces financial flexibility to fund investment or weather demand shocks. A rise toward ~2.5x increases refinancing and interest-rate sensitivity, constraining capital allocation and making consistent cash conversion critical to avoid credit pressure over the medium term.

Declining free cash flow conversion

Lower FCF conversion, driven by elevated CapEx and restructuring cash costs, weakens the firm's ability to delever and sustain buybacks/dividends. Persistent declines would pressure liquidity and limit strategic flexibility, magnifying risks from existing leverage and investment commitments.

Developed-market demand softness & share loss

Softness in Europe and seasonal OTC alongside significant CMU share losses signal structural competitive and demand challenges in core developed markets. Sustained share erosion would pressure organic growth and force higher promotional spend, undermining margins and long-term brand strength.

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 makes money primarily by selling branded consumer packaged goods (CPG) to customers worldwide. Its revenue model is largely product-sales driven: the company manufactures (and in some cases outsources the manufacture of) finished goods, markets them under its brand portfolio, and sells them through a mix of channels including large retailers, wholesalers/distributors, pharmacies, and online platforms. Key revenue streams come from (1) Health—consumer health products such as OTC medicines and wellness-related items sold through pharmacies, drugstores, and retail/e-commerce; and (2) Hygiene—home and personal hygiene products such as disinfecting sprays/wipes and cleaning solutions sold largely through mass retail and e-commerce. Revenue is recognized from the sale of goods, with earnings supported by brand pricing power, advertising and promotion, product innovation, and scale in procurement and manufacturing. Profitability is influenced by factors such as input costs (raw materials, packaging), logistics, retailer terms/trade spend, foreign exchange movements (given global sales), and regulatory/quality requirements particularly in consumer health. Significant partnerships: null.

Reckitt Benckiser Group Financial Statement Overview

Summary

Profitable profile with solid margins and an earnings rebound, but revenue has declined recently and free cash flow is trending down. Balance sheet is moderately leveraged, making sustained cash generation important.

Income Statement

Profitability is solid and improving versus the weaker 2021 base, with 2024 showing healthy gross and net profit margins (~61% gross, ~10% net). However, the top line has been soft: revenue declined in 2024 and again in 2025 (annual), and margins have come down from the stronger 2022 level. 2025 (annual) shows a sharp rebound in earnings versus 2024, but with continued revenue pressure, the quality of the improvement depends on cost discipline rather than growth.

Balance Sheet

Leverage is meaningful for the sector: debt has stayed elevated (~$8.5–$10.6B range) and debt-to-equity was about 1.29x in 2024, up from ~0.94x in 2022. Equity improved in 2024–2025 (annual), which helps cushion leverage, and returns on equity were strong in 2022–2024. Still, the balance sheet remains moderately geared, leaving less flexibility if earnings soften or rates/refinancing conditions tighten.

Cash Flow

Cash generation is consistently positive, with free cash flow exceeding $1B each year, supporting resilience. That said, cash flow has been trending down recently: free cash flow fell in 2025 (annual) and operating cash flow also stepped down versus 2023–2024. Free cash flow as a share of net income was solid (~0.83x in 2023–2024), but the recent decline in absolute cash flow is a watch item given the company’s leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.89B	14.17B	14.61B	14.45B	13.23B
Gross Profit	8.44B	8.60B	8.76B	8.36B	7.69B
EBITDA	4.61B	2.96B	3.19B	3.65B	3.02B
Net Income	3.11B	1.43B	1.64B	2.33B	-32.00M
Balance Sheet
Total Assets	25.02B	25.30B	27.14B	28.74B	26.95B
Cash, Cash Equivalents and Short-Term Investments	1.95B	760.00M	1.39B	1.16B	1.26B
Total Debt	8.42B	8.66B	8.54B	8.88B	9.56B
Total Liabilities	17.26B	18.58B	18.67B	19.26B	19.49B
Stockholders Equity	7.73B	6.70B	8.45B	9.44B	7.40B
Cash Flow
Free Cash Flow	1.72B	2.22B	2.19B	1.95B	1.32B
Operating Cash Flow	2.25B	2.68B	2.64B	2.40B	1.70B
Investing Cash Flow	1.17B	-396.00M	-466.00M	-139.00M	239.00M
Financing Cash Flow	-2.38B	-2.71B	-1.81B	-2.38B	-2.29B

Reckitt Benckiser Group Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBGLY, the sentiment is Negative. The current price of 15.72 is above the 20-day moving average (MA) of 15.44, below the 50-day MA of 16.34, and above the 200-day MA of 15.37, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 21.74 is Positive, neither overbought nor oversold. The STOCH value of 1.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBGLY.

Reckitt Benckiser Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$335.31B	20.05	31.23%	2.92%	1.23%	17.97%
CHD	73 Outperform	$22.41B	27.62	17.16%	1.38%	1.45%	42.04%
UL	69 Neutral	$133.95B	20.76	26.01%	3.74%	-0.30%	-14.60%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RBGLY	62 Neutral	$43.77B	12.61	38.45%	3.33%	0.29%	-14.19%
CL	61 Neutral	$68.23B	-429.64	431.59%	2.67%	-0.05%	2.49%
KMB	61 Neutral	$32.59B	16.63	155.28%	5.03%	-10.04%	-23.41%