Reckitt Benckiser Group (RBGLY) AI Stock Analysis

• Market Cap: $46.19B
• Dividend Yield: 3.45%
• Average Volume (3M): 278.50K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.36
• Revenue Growth: -0.16%
• EPS Growth: -26.81%
• Country: US
• Employees: 40,000
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Consumer Products - Household & Personal
• EPS (TTM): 0.55
• Shares Outstanding: 3,419,731,000
• 10 Day Avg. Volume: 254,930
• 30 Day Avg. Volume: 278,496
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.52
• Price to Cash Flow (P/CF): 18.40
• P/FCF Ratio: 18.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.44
• Price Target Upside: 0.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Reckitt Benckiser Group's solid financial standing and robust cash flow management contribute positively to its overall score. However, the modest revenue growth and weak technical indicators highlight some caution for short-term performance. The stock appears fairly valued with an attractive dividend yield.

Reckitt Benckiser Group Business Overview & Revenue Model

Company Description

Reckitt Benckiser Group (RBGLY), commonly known as Reckitt, is a multinational consumer goods company headquartered in the United Kingdom. It operates in the health, hygiene, and nutrition sectors, offering a wide range of products aimed at improving the lives of consumers. The company is known for its strong portfolio of trusted brands, including Dettol, Lysol, Durex, Enfamil, and Nurofen, among others, which are distributed in numerous countries worldwide.

How the Company Makes Money

Reckitt Benckiser Group generates revenue primarily through the sale of its consumer products across its three core sectors: health, hygiene, and nutrition. The company's revenue model involves manufacturing, marketing, and distributing a diverse range of branded products that cater to everyday consumer needs. Key revenue streams include over-the-counter health products, household cleaning agents, and infant and child nutrition products. Reckitt benefits from strong brand recognition and loyalty, which supports stable sales. Additionally, the company leverages strategic partnerships and acquisitions to expand its product offerings and market reach, contributing to its revenue growth. Significant factors such as innovation, consumer trends, and regulatory compliance also play crucial roles in maintaining and enhancing its market position.

Reckitt Benckiser Group Financial Statement Overview

Summary

Reckitt Benckiser has shown strong profitability with a net profit margin of over 11% and improved return on equity. Cash flow management is robust with consistent free cash flow. However, revenue growth remains modest, and there is room to strengthen the equity position further.

Income Statement

Reckitt Benckiser has shown a stable gross profit margin of around 60% in recent years. The net profit margin has improved significantly from a negative figure in 2019 to over 11% in 2023, indicating enhanced operational efficiency and profitability. However, the revenue growth rate has been modest, with a slight increase from 2022 to 2023, reflecting challenges in achieving substantial top-line growth. The EBIT and EBITDA margins demonstrate healthy operational performance, with EBITDA margins consistently above 20%.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, which has improved from 2019 to 2023, suggesting better management of its leverage. The return on equity has rebounded from negative figures in 2019 to a strong positive return by 2023, highlighting improved financial performance and shareholder returns. The equity ratio shows a stable structure with a slight decline over recent years, indicating a balanced approach to financing.

Cash Flow

Reckitt Benckiser has demonstrated robust cash flow management with consistent free cash flow generation. The operating cash flow to net income ratio is strong, reflecting efficient conversion of profits into cash. Additionally, the free cash flow to net income ratio indicates the company's ability to generate solid cash flow relative to its net income, supporting its financial flexibility and potential for reinvestment or returns to shareholders.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
17.91B	14.61B	14.45B	13.23B	13.99B	12.85B
	Gross Profit
10.83B	8.76B	8.36B	7.68B	8.44B	7.78B
	EBIT
4.05B	2.53B	3.25B	3.49B	3.15B	-1.71B
	EBITDA
3.54B	3.17B	3.90B	465.00M	3.61B	3.78B
	Net Income Common Stockholders
1.75B	1.64B	2.33B	-52.00M	1.19B	-2.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.39B	1.39B	1.16B	1.26B	1.65B	1.55B
	Total Assets
27.14B	27.14B	28.74B	26.95B	31.29B	32.14B
	Total Debt
8.54B	8.54B	8.88B	9.56B	10.56B	12.20B
	Net Debt
7.38B	7.38B	7.73B	8.30B	8.91B	10.65B
	Total Liabilities
18.67B	18.67B	19.26B	19.49B	22.13B	22.73B
	Stockholders Equity
8.45B	8.45B	9.44B	7.40B	9.12B	9.36B
Cash Flow		Free Cash Flow
3.05B	2.19B	1.95B	1.25B	3.03B	968.00M
	Operating Cash Flow
3.53B	2.64B	2.40B	1.70B	3.52B	1.41B
	Investing Cash Flow
-526.00M	-466.00M	-139.00M	239.00M	-512.00M	-442.00M
	Financing Cash Flow
-2.80B	-1.81B	-2.38B	-2.29B	-2.86B	-830.00M

Reckitt Benckiser Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.39
• 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 RBGLY, the sentiment is Positive. The current price of 13.39 is above the 20-day moving average (MA) of 13.21, above the 50-day MA of 12.68, and above the 200-day MA of 11.88, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 63.80 is Neutral, neither overbought nor oversold. The STOCH value of 63.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBGLY.

Reckitt Benckiser Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	80 Outperform	$406.08B	27.59	30.25%	2.29%	0.49%	5.02%
CHD	74 Outperform	$27.23B	46.70	13.42%	1.02%	4.08%	-22.34%
CL	74 Outperform	$73.90B	25.95	1362.74%	2.15%	3.30%	26.83%
KMB	71 Outperform	$46.81B	18.69	302.98%	3.40%	-1.83%	45.13%
RBGLY	68 Neutral	$46.19B	24.51	19.45%	3.45%	-0.16%	-26.81%
Sector *	63 Neutral	$20.85B	13.27	-10.88%	7.48%	1.13%	11.50%
EL	50 Neutral	$24.49B	147.29	-16.79%	2.88%	0.07%	-249.21%