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Reckitt Benckiser Group Plc (RBGLY)
OTHER OTC:RBGLY
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Reckitt Benckiser Group
(OTC:RBGLY)
73Outperform
Reckitt Benckiser Group (RBGLY) vs. S&P 500 (SPY)
Market Cap
$44.67B
Dividend Yield3.52%
Average Volume (3M)6.62K
Price to Earnings (P/E)25.3
Beta (1Y)0.29
Revenue Growth-0.29%
EPS Growth-8.82%
CountryUS
Employees37,900
SectorConsumer Defensive
Sector Strength94
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.51
Shares Outstanding3,412,409,400
10 Day Avg. Volume0
30 Day Avg. Volume6,616
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.48
Price to Cash Flow (P/CF)18.10
P/FCF Ratio18.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.24Price Target Upside15.89% Upside
Rating ConsensusHold
Number of Analyst Covering2
Reckitt Benckiser Group Business Overview & Revenue Model
Company DescriptionReckitt 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 MoneyReckitt Benckiser Group generates revenue primarily through the sale of its consumer goods products across the health, hygiene, and home sectors. The company's key revenue streams include health products, such as over-the-counter medications, vitamins, and dietary supplements. In the hygiene sector, Reckitt Benckiser earns money from cleaning and disinfectant products, including hand sanitizers, surface cleaners, and air fresheners. The home segment contributes to revenue through products like dishwashing detergents and laundry care solutions. The company leverages strong brand recognition, strategic marketing, and widespread distribution networks to ensure its products are available across various retail channels, including supermarkets, pharmacies, and e-commerce platforms. Additionally, Reckitt Benckiser often forms strategic partnerships and alliances to expand its market reach and enhance product offerings, further supporting its revenue growth.
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%.75
Positive
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.70
Positive
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.80
Positive
| 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 | ||||
| 1.71B | 1.39B | 1.16B | 1.26B | 1.65B | 1.55B | Total Assets |
| 38.58B | 27.14B | 28.74B | 26.95B | 31.29B | 32.14B | Total Debt |
| 12.31B | 8.54B | 8.88B | 9.56B | 10.56B | 12.20B | Net Debt |
| 10.60B | 7.38B | 7.73B | 8.30B | 8.91B | 10.65B | Total Liabilities |
| 24.11B | 18.67B | 19.26B | 19.49B | 22.13B | 22.73B | Stockholders Equity |
| 14.43B | 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
Negative
13.15
Price Trends
13.31
Negative
12.73
Positive
12.15
Positive
Market Momentum
0.06
Positive
54.33
Neutral
89.15
Negative
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 13.15 is below the 20-day moving average (MA) of 13.44, below the 50-day MA of 13.31, and above the 200-day MA of 12.15, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 89.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBGLY.
Reckitt Benckiser Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $74.34B | 26.12 | 704.02% | 2.18% | 3.30% | 26.83% | |
76 Outperform | $383.97B | 26.09 | 31.05% | 2.46% | 0.49% | 5.02% | |
76 Outperform | $151.50B | 24.04 | 30.53% | 3.10% | 1.99% | -10.59% | |
73 Outperform | $44.67B | 25.28 | 18.96% | 3.52% | -0.29% | -8.82% | |
71 Outperform | $45.74B | 18.26 | 290.03% | 3.57% | -1.83% | 45.13% | |
70 Outperform | $42.68B | 41.49 | 9.87% | 3.65% | 0.08% | -32.67% | |
62 Neutral | $20.22B | 13.99 | -16.14% | 3.22% | 1.15% | 3.41% |
* Consumer Defensive Sector Average
Performance Comparison
RBGLY
Reckitt Benckiser Group
13.15
2.83
27.42%
CL
Colgate-Palmolive
91.66
5.81
6.77%
KMB
Kimberly Clark
137.91
16.19
13.30%
PG
Procter & Gamble
163.75
11.47
7.53%
UL
Unilever
59.92
13.27
28.45%
KVUE
Kenvue, Inc.
22.33
3.03
15.70%
Reckitt Benckiser Group Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -1.42% | Next Earnings Date: Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with significant achievements in earnings growth, market share gains, and innovation successes. However, challenges persist in the Nutrition segment and Essential Home, along with impacts from a weak cold and flu season. Overall, the positive aspects slightly outweigh the negative ones, indicating cautious optimism for future performance.Highlights
Strong Earnings Growth
Adjusted operating profit increased by 8.6% and EPS grew by 7.9% due to effective cost management and successful implementation of the Fuel for Growth program.
Market Share Gains
55% of top CMUs held or gained market share across Health and Hygiene, indicating effective market strategies and product positioning.
Innovation Success
New products and category creations, such as Lysol Air Sanitizer and Durex Intensity, drove higher-margin growth and strong market performance.
Record Cash Returns to Shareholders
£2.7 billion returned to shareholders through dividends and share buybacks, a 75% increase from the previous year.
Emerging Markets Growth
Strong performance in China with double-digit net revenue growth and promising expansion in regions like Africa and Latin America.
Lowlights
Decline in Nutrition Segment
Nutrition segment saw a like-for-like net revenue decline of 7.3% due to supply disruptions from the Mount Vernon tornado and evolving regulatory environment challenges.
Weak Cold and Flu Season Impact
Health segment growth was partly offset by a weak cold and flu season, affecting sales of products like Mucinex.
Challenges in the Essential Home Segment
The Essential Home segment faced a competitive market, particularly in air care, contributing to anticipated negative like-for-like growth in the first half of 2025.
Biofreeze Impairment Charges
£838 million of impairment charges reported for IFCN and Biofreeze due to a more challenging marketplace in topical pain relief.
Company Guidance
During the call, Reckitt provided detailed guidance for its fiscal year 2025, emphasizing its expectations for continued growth and strategic shifts. The company aims for 3% to 4% like-for-like net revenue growth in its Core Reckitt segment, with balanced delivery across the first and second halves of the year. Essential Home and Mead Johnson Nutrition are expected to see low single-digit growth, with both businesses showing declines in the first half. The adjusted operating profit is projected to grow ahead of net revenue, supported by the Fuel for Growth program, which targets a 300 basis point reduction in fixed costs by 2027. In 2024, the group achieved a 1.4% net revenue growth, consistent with prior guidance of 1% to 3%. The adjusted operating profit increased by 8.6%, and the company returned £2.7 billion to shareholders, reflecting a 75% increase from the previous year. Regionally, strong performances were noted in Europe and developing markets, notably China, while North America faced challenges due to a weak cold and flu season. The company also announced plans to exit Essential Home and Mead Johnson Nutrition, with new leadership in place at Essential Home and ongoing litigation defense in Nutrition.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.