Rentokil reported 3.4% organic growth, with North America contributing 3.2%. Management confirmed guidance, expecting profits in line with market expectations, and announced a $200 million share buyback. Both contributed to an 8% rise in shares in early trading Oct. 22.
The Terminix acquisition bolsters Rentokil’s cost advantage from route density and offers higher margin potential after the integration.
As the industry consolidates, deal multiples could rise on the 40-50 acquisitions that Rentokil completes a year, harming return on invested capital.
|
Metric
|
RTO
|
ECL
|
ROL
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.87 | 36.68 | 29.57 |
Price/Book Value | 2.08 | 7.83 | 11.77 |
Price/Sales | 1.64 | 4.75 | 4.10 |
Price/Cash Flow | 12.99 | 24.55 | 21.97 |
|
Metric
|
RTO
|
ECL
|
ROL
|
|---|---|---|---|
Quick Ratio | 0.97 | 1.50 | 0.44 |
Current Ratio | 1.06 | 1.84 | 0.62 |
Interest Coverage | 2.47 | 8.94 | 20.10 |
|
Metric
|
RTO
|
ECL
|
ROL
|
|---|---|---|---|
Return on Assets (Normalized) | 4.72% | 8.85% | 16.93% |
Return on Equity (Normalized) | 12.53% | 23.06% | 38.66% |
Return on Invested Capital (Normalized) | 7.34% | 12.44% | 23.34% |
|
1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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Capital Allocation
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Economic Moat
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United States