Rentokil Initial (RTO) AI Stock Analysis

• Market Cap: $15.50B
• Dividend Yield: 2.2%
• Average Volume (3M): 792.30K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 0.72
• Revenue Growth: 1.56%
• EPS Growth: -32.50%
• Country: US
• Employees: 68,485
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.62
• Shares Outstanding: 505,207,980
• 10 Day Avg. Volume: 681,139
• 30 Day Avg. Volume: 792,301
• PEG Ratio: -1.67
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 20.18
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.61
• Enterprise Value/Gross Profit: 19.97
• Enterprise Value/Ebitda: 14.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $34.00 ▲(3.79% Upside)

Rentokil Initial's overall stock score reflects strong financial performance and effective cash flow management, which are offset by technical indicators showing mixed signals and a high valuation. The company's strategic focus on revenue growth and market expansion supports its competitive positioning, but attention to rising debt levels and valuation concerns is necessary.

Positive Factors

Scale & Global Market Position

Rentokil's presence across 70+ countries provides durable scale advantages: broad commercial contracts, local regulatory know-how, and cross-border service standardization. Scale lowers unit costs, supports national account relationships, and creates higher barriers to entry for smaller competitors over months to years.

Recurring Revenue & Cash Generation

A subscription-based model for pest and hygiene services drives recurring revenue and predictable cash inflows. Robust operating cash flow and positive free cash flow conversion support reinvestment, working capital management and steady funding of capex or dividends, strengthening long-term financial flexibility.

Profitability and Margin Sustainability

Consistent revenue growth combined with healthy gross and net margins indicates effective pricing power and service mix. Sustained margins enable reinvestment in technology and field operations, preserving competitive advantage and return on equity across multi-quarter horizons despite industry cyclicality.

Negative Factors

Rising Debt Levels

An increasing debt load reduces financial flexibility and raises interest expense sensitivity if rates rise. Elevated leverage can constrain M&A optionality, capital allocation and buffer against downturns, making balance sheet management a structural risk over the next several quarters if deleveraging is not prioritized.

Inconsistent Free Cash Flow Growth

While operating cash flow is robust, uneven free cash flow growth signals variability in capex, working capital or one-off items. Persistent FCF volatility can limit reliable funding for dividends, buybacks or strategic investments and complicates long-term planning and investor confidence over multiple quarters.

Earnings Volatility (EPS Decline)

A substantial decline in EPS growth points to margin pressure, cost or pricing challenges, or non-operational impacts. Continued EPS volatility undermines retained earnings accumulation and can limit capital deployed to growth initiatives, making earnings recovery a medium-term operational priority.

Rentokil Initial Business Overview & Revenue Model

Company Description

Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. It offers a range of pest control services for rodents, and flying and crawling insects, as well as other forms of wildlife management for commercial and residential customers. The company also provides hygiene services, including the provision and maintenance of products, such as soap and hand sanitizer dispensers, hand dryers, air care and purification, cubicle and surface sanitizers, feminine hygiene units, toilet paper dispensers, and floor protection mats. In addition, it engages in the supply and laundering of workwear, uniforms, cleanroom uniforms, and protective equipment. Further, the company installs and services interior and exterior plant displays, flowers, replica foliage, Christmas decorations, and ambient scenting for commercial businesses; offers property care services consisting of damp proofing, property conservation, and woodworm and wood rot treatment; and provides a range of specialist cleaning services, such as graffiti removal deep cleaning of kitchens and washrooms, trauma cleaning, and flood or fire damage cleaning, as well as specialist industrial cleaning and disinfection services, including the professional and discreet disinfection of areas that have been exposed to bio-hazardous situations, such as crime and trauma scenes, prison cells, void properties, emergency vehicles, and healthcare establishments. Additionally, it offers a range of healthcare waste management services comprising the collection, disposal, and recycling of hazardous and offensive waste produced by businesses and organizations associated with the provision of healthcare; and color-coded sharps disposal bins to deal with various types of waste. Rentokil Initial plc was founded in 1903 and is headquartered in Crawley, the United Kingdom.

How the Company Makes Money

Rentokil Initial generates revenue through multiple streams, primarily from its pest control and hygiene service contracts. The company charges clients on a subscription basis for ongoing pest management services, which includes regular inspections, treatments, and preventative measures. Additionally, Rentokil Initial earns income from one-off services such as pest eradication and hygiene product sales. Strategic partnerships with businesses in various industries, such as food production and healthcare, enhance its service offerings and expand its customer base. Furthermore, the company's focus on innovation, including the development of smart pest control technologies, positions it to capture additional market share and drive revenue growth.

Rentokil Initial Financial Statement Overview

Summary

Rentokil Initial demonstrates strong financial performance with consistent revenue growth and solid profitability. The company maintains effective cash flow management, although increasing debt levels require attention. Continued strategic investments are crucial for sustaining long-term growth.

Income Statement

Rentokil Initial has demonstrated steady revenue growth, with a significant increase from 2020 to 2024. The gross profit margin and net profit margin indicate healthy profitability, although there was a slight decline in EBIT and EBITDA margins between 2023 and 2024. The company's ability to maintain a high revenue growth rate and strong margins highlights its competitive positioning in the corporate services industry.

Balance Sheet

The balance sheet reflects a strong equity base with a moderate debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is stable, but there is a noticeable increase in total debt over the years. Return on equity is healthy, driven by consistent net income growth, though the rising debt level poses a potential risk if not managed carefully.

Cash Flow

Operating cash flow remains robust, supporting the company's free cash flow generation. The free cash flow to net income and operating cash flow to net income ratios are favorable, showcasing effective cash conversion. However, the free cash flow growth rate has been inconsistent, suggesting fluctuations in capital expenditures and cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.09B	5.44B	5.38B	3.71B	2.95B	2.79B
Gross Profit	796.00M	726.00M	4.45B	977.00M	714.80M	653.00M
EBITDA	1.07B	990.00M	1.16B	748.00M	580.00M	517.00M
Net Income	299.00M	307.00M	381.00M	232.00M	263.00M	186.00M
Balance Sheet
Total Assets	14.23B	10.55B	11.13B	11.92B	4.32B	5.58B
Cash, Cash Equivalents and Short-Term Investments	1.69B	927.00M	1.55B	2.17B	670.00M	2.12B
Total Debt	6.04B	4.14B	4.73B	5.47B	1.97B	3.14B
Total Liabilities	8.97B	6.33B	7.04B	7.82B	3.06B	4.45B
Stockholders Equity	5.27B	4.23B	4.09B	4.10B	1.26B	1.13B
Cash Flow
Free Cash Flow	645.00M	507.00M	526.00M	414.00M	407.20M	382.60M
Operating Cash Flow	840.00M	678.00M	737.00M	604.00M	567.10M	535.10M
Investing Cash Flow	-398.00M	-373.00M	-416.00M	-1.20B	-441.00M	-497.00M
Financing Cash Flow	-251.00M	-752.00M	-361.00M	1.32B	-417.10M	229.00M

Rentokil Initial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.76
• 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 RTO, the sentiment is Positive. The current price of 32.76 is above the 20-day moving average (MA) of 31.80, above the 50-day MA of 29.85, and above the 200-day MA of 25.92, indicating a bullish trend. The MACD of 0.69 indicates Positive momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 36.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RTO.

Rentokil Initial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNF	70 Outperform	$3.73B	28.44	6.50%	0.71%	0.20%	2.72%
ABM	69 Neutral	$2.77B	17.78	9.10%	2.20%	4.62%	102.72%
RTO	66 Neutral	$15.50B	47.67	5.86%	2.20%	1.56%	-32.50%
CBZ	66 Neutral	$2.14B	26.73	7.44%	―	59.19%	-35.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACTG	63 Neutral	$383.91M	81.89	0.90%	―	71.28%	-89.20%
BV	59 Neutral	$1.26B	317.24	3.13%	―	-3.40%	-51.58%

Rentokil Initial Corporate Events

Rentokil Initial Discloses Independent Franchise Partners’ Stake Dip Below 5% Threshold

On 15 January 2026, Independent Franchise Partners LLP marginally reduced its stake in Rentokil Initial plc, taking its holding below the 5% notification threshold to 4.98% of the company’s voting rights, equivalent to 125,795,910 shares, all held via indirect voting rights and with no exposure through financial instruments. The move, formally notified to Rentokil on 16 January and disclosed in a Form 6‑K filed on 19 January, signals only a slight change in the shareholder register but is notable for crossing a key regulatory reporting threshold, offering investors updated visibility on the composition of Rentokil’s institutional investor base and any incremental shifts in governance influence among major shareholders.

The most recent analyst rating on (RTO) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Rentokil Initial stock, see the RTO Stock Forecast page.

BlackRock Lifts Rentokil Initial Stake to 11% of Voting Rights

On 14 January 2026, asset manager BlackRock Inc. increased its stake in Rentokil Initial plc, crossing a major shareholding threshold as defined under UK disclosure rules. The position, notified to the company on 15 January 2026 and disclosed in a January 2026 Form 6-K, shows BlackRock now controls 11.0% of Rentokil’s voting rights in aggregate, up from 10.02%, through a combination of direct shareholdings and various financial instruments, including American Depositary Receipts, securities lending positions and derivatives such as CFDs and ELNs. The move underscores the continued interest of large institutional investors in Rentokil Initial and slightly strengthens BlackRock’s influence among the company’s shareholder base, a development monitored closely by governance-focused stakeholders.

The most recent analyst rating on (RTO) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Rentokil Initial stock, see the RTO Stock Forecast page.

Rentokil Initial Discloses Independent Franchise Partners Crossing 5% Shareholding Threshold

On 14 January 2026, Rentokil Initial plc reported a change in significant shareholding, disclosing that London-based asset manager Independent Franchise Partners LLP had increased its stake in the company. A regulatory filing showed that on 12 January 2026 the investor’s holding rose from 4.9081% to 5.01% of Rentokil Initial’s voting rights, equivalent to 126,470,698 shares, with no additional exposure through financial instruments. Crossing the 5% threshold underscores continuing institutional support for Rentokil Initial and slightly broadens the influence of this shareholder in corporate voting matters, a development that may be closely watched by other investors and governance observers.

The most recent analyst rating on (RTO) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Rentokil Initial stock, see the RTO Stock Forecast page.

Swedbank Robur Fonder AB Adjusts Stake in Rentokil Initial

On December 3, 2025, Swedbank Robur Fonder AB crossed a voting rights threshold in Rentokil Initial plc, holding 3.020865% of the voting rights. This acquisition or disposal of voting rights was formally notified on December 4, 2025, indicating a significant stake in the company, potentially impacting its shareholder dynamics and market perception.

The most recent analyst rating on (RTO) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Rentokil Initial stock, see the RTO Stock Forecast page.

Rentokil Initial Announces Change in Major Shareholder Holdings

On December 5, 2025, Rentokil Initial announced a change in major holdings, with GIC Private Limited crossing a threshold in its voting rights. This change reflects a slight decrease in GIC’s total voting rights from 5.241261% to 4.958379%, impacting the company’s shareholder composition and potentially influencing future corporate decisions.

The most recent analyst rating on (RTO) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Rentokil Initial stock, see the RTO Stock Forecast page.

Rentokil Initial Announces Change in Major Holdings

On November 26, 2025, Rentokil Initial plc announced a change in major holdings due to an acquisition or disposal of voting rights by Independent Franchise Partners, LLP. The notification revealed that on November 22, 2025, the voting rights held by Independent Franchise Partners decreased from 5% to 4.9081%, impacting the company’s shareholder structure.

The most recent analyst rating on (RTO) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Rentokil Initial stock, see the RTO Stock Forecast page.