Rentokil Initial (RTO) AI Stock Analysis

• Market Cap: $13.90B
• Dividend Yield: 2.51%
• Average Volume (3M): 573.59K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 0.77
• 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: 487,750
• 30 Day Avg. Volume: 573,594
• 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: 1.19
• Enterprise Value/Revenue: 2.71
• Enterprise Value/Gross Profit: 20.72
• Enterprise Value/Ebitda: 15.37
• 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: $28.00 ▲(4.52% 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.

Rentokil Initial Business Overview & Revenue Model

Company Description

Rentokil Initial (RTO) is a leading global provider of pest control, hygiene, and interior landscaping services, operating in over 70 countries. The company focuses on offering comprehensive solutions to businesses and consumers to enhance public health and protect environments. Core services include pest management, washroom hygiene, and plant care, catering to a diverse range of sectors such as healthcare, food service, and hospitality.

How the Company Makes Money

Rentokil Initial generates revenue through multiple streams, primarily from its pest control and hygiene services. The company operates on a subscription-based model, where clients pay for ongoing service contracts for pest management and hygiene solutions, providing a steady and recurring income. Additionally, Rentokil Initial earns revenue from one-time services, product sales, and specialized treatments. Partnerships with businesses in various sectors, including hospitality and food production, enhance its customer base and revenue potential. The company's focus on innovation, such as the development of smart pest control technologies, also contributes to its earnings by attracting new clients and retaining existing ones.

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, though rising debt levels require attention. Overall, the financial profile is robust, supporting strategic investments for 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: Neutral
• Last Price: 26.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RTO, the sentiment is Neutral. The current price of 26.79 is below the 20-day moving average (MA) of 27.44, above the 50-day MA of 26.48, and above the 200-day MA of 24.23, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RTO.

Rentokil Initial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBZ	68 Neutral	$2.74B	33.20	7.44%	―	59.19%	-35.47%
UNF	68 Neutral	$2.75B	19.81	6.93%	0.90%	0.20%	2.72%
RTO	66 Neutral	$13.90B	41.66	5.86%	2.51%	1.56%	-32.50%
ABM	66 Neutral	$2.48B	22.00	6.32%	2.62%	4.27%	-24.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACTG	63 Neutral	$316.34M	―	0.90%	―	71.28%	-89.20%
BV	58 Neutral	$1.12B	354.93	3.03%	―	-2.99%	-72.13%

Rentokil Initial Corporate Events

Rentokil Initial Announces Change in Major Holdings

On October 28, 2025, Rentokil Initial plc announced a change in major holdings, with GIC Private Limited reducing its voting rights from 5.908063% to 5.241262%. This adjustment in holdings reflects a decrease in GIC’s influence over Rentokil Initial, potentially impacting strategic decisions and stakeholder dynamics within the company.

Rentokil Initial Announces Change in Major Shareholdings by BlackRock

On October 28, 2025, Rentokil Initial plc reported a change in major shareholdings, with BlackRock, Inc. adjusting its voting rights in the company. This adjustment, which occurred on October 24, 2025, resulted in BlackRock holding 10.02% of the voting rights, slightly up from a previous position of 9.93%. This change in holdings could influence Rentokil’s strategic decisions and shareholder dynamics, potentially impacting its market position and stakeholder interests.

BlackRock Adjusts Stake in Rentokil Initial

On October 23, 2025, BlackRock, Inc. adjusted its holdings in Rentokil Initial plc, reducing its total voting rights to 9.93% from a previous 10.04%. This change, notified on October 24, 2025, reflects a minor shift in BlackRock’s investment strategy, potentially impacting Rentokil’s shareholder dynamics and market perception.

Rentokil Initial Announces Change in Major Holdings by GIC

On October 21, 2025, Rentokil Initial announced a change in its major holdings, as GIC Private Limited, based in Singapore, adjusted its voting rights in the company. The notification revealed that GIC’s total voting rights now stand at 5.908063%, down from a previous position of 6.103843%, indicating a slight decrease in their stake. This adjustment may impact Rentokil Initial’s shareholder dynamics and reflects ongoing changes in investment strategies by major stakeholders.

Rentokil Initial Announces Change in Major Holdings

On October 14, 2025, Rentokil Initial plc announced a change in its major holdings, with GIC Private Limited adjusting its voting rights in the company. The notification indicates a decrease in GIC’s total voting rights from 6.485739% to 6.103843%, marking a significant shift in shareholder structure. This adjustment in holdings could impact Rentokil’s strategic decisions and influence its market positioning, as GIC holds a substantial stake in the company.

Rentokil Initial Maintains Stability in Performance Share Plan as of October 2025

On October 1, 2025, Rentokil Initial plc released its block listing interim review for the period from April 1 to September 30, 2025. The report indicates that there were no changes in the number of securities allotted under the Rentokil Initial plc 2006 Performance Share Plan, maintaining a balance of 500,000 unallotted securities. This stability in the securities scheme suggests a steady operational phase for the company, reflecting a consistent approach to its performance share plan.