RTO
Rentokil Initial·NYSE
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6.65 / 10
Outperform
Fundamental evaluation scores 6.7/10, indicating adequate health. Key strengths include a positive Asset-MV (0.0159) and a healthy equity multiplier (2.5979), both in high-performing groups. Net income-to-revenue is negative (-0.6135), and current assets represent only 25.6% of total assets, suggesting liquidity vulnerabilities. Non-current assets dominate at 74.4%, and net profit margin is high at 87.0%, though historical returns for this metric are modest. Overall, RTO's fundamentals are solid but not exceptional, supporting an 'Outperform' stance with caveats on liquidity.
Analysis Checks(7/10)
Net profit attributable to parent company shareholders / Net profit (%)
Value100.00
Score3/3
Weight8.77%
1M Return4.31%
Value100.00
Score3/3
Weight8.77%
1M Return4.31%
Net income-Revenue
Value-0.61
Score3/3
Weight12.86%
1M Return7.21%
Value-0.61
Score3/3
Weight12.86%
1M Return7.21%
Net cash flow from operating activities / Total liabilities (%)
Value0.05
Score2/3
Weight7.24%
1M Return3.19%
Value0.05
Score2/3
Weight7.24%
1M Return3.19%
Equity multiplier (DuPont analysis %)
Value2.60
Score3/3
Weight15.59%
1M Return7.41%
Value2.60
Score3/3
Weight15.59%
1M Return7.41%
Current ratio
Value1.12
Score3/3
Weight17.62%
1M Return8.33%
Value1.12
Score3/3
Weight17.62%
1M Return8.33%
Net cash flow from operating activities / Operating revenue (%)
Value13.94
Score2/3
Weight8.37%
1M Return3.85%
Value13.94
Score2/3
Weight8.37%
1M Return3.85%
Non-current assets / Total assets (%)
Value74.38
Score1/3
Weight3.27%
1M Return1.56%
Value74.38
Score1/3
Weight3.27%
1M Return1.56%
Asset-MV
Value0.02
Score3/3
Weight23.85%
1M Return10.48%
Value0.02
Score3/3
Weight23.85%
1M Return10.48%
Current assets / Total assets (%)
Value25.62
Score1/3
Weight3.07%
1M Return1.47%
Value25.62
Score1/3
Weight3.07%
1M Return1.47%
Net profit / Total profit (%)
Value87.04
Score1/3
Weight-0.64%
1M Return-0.39%
Value87.04
Score1/3
Weight-0.64%
1M Return-0.39%
Net profit attributable to parent company shareholders / Net profit (%)
Value100.00
Score3/3
Weight8.77%
1M Return4.31%
Value100.00
Score3/3
Weight8.77%
1M Return4.31%
Net cash flow from operating activities / Operating revenue (%)
Value13.94
Score2/3
Weight8.37%
1M Return3.85%
Value13.94
Score2/3
Weight8.37%
1M Return3.85%
Net income-Revenue
Value-0.61
Score3/3
Weight12.86%
1M Return7.21%
Value-0.61
Score3/3
Weight12.86%
1M Return7.21%
Non-current assets / Total assets (%)
Value74.38
Score1/3
Weight3.27%
1M Return1.56%
Value74.38
Score1/3
Weight3.27%
1M Return1.56%
Net cash flow from operating activities / Total liabilities (%)
Value0.05
Score2/3
Weight7.24%
1M Return3.19%
Value0.05
Score2/3
Weight7.24%
1M Return3.19%
Asset-MV
Value0.02
Score3/3
Weight23.85%
1M Return10.48%
Value0.02
Score3/3
Weight23.85%
1M Return10.48%
Equity multiplier (DuPont analysis %)
Value2.60
Score3/3
Weight15.59%
1M Return7.41%
Value2.60
Score3/3
Weight15.59%
1M Return7.41%
Current assets / Total assets (%)
Value25.62
Score1/3
Weight3.07%
1M Return1.47%
Value25.62
Score1/3
Weight3.07%
1M Return1.47%
Current ratio
Value1.12
Score3/3
Weight17.62%
1M Return8.33%
Value1.12
Score3/3
Weight17.62%
1M Return8.33%
Net profit / Total profit (%)
Value87.04
Score1/3
Weight-0.64%
1M Return-0.39%
Value87.04
Score1/3
Weight-0.64%
1M Return-0.39%
Is RTO fundamentally strong?
- RTO scores 6.65/10 on fundamentals and holds a Discounted valuation at present. Backed by its 3.56% ROE, 4.70% net margin, 50.09 P/E ratio, 3.08 P/B ratio, and -35.22% earnings growth, these metrics solidify its Outperform investment rating.
