Rentokil Initial

RTO

Specialty Business Services · Industrials

Price

$30.39

-0.02 (-0.07%)

Market Cap

$15.29B

Exchange

New York Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+35.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 373.3M (2021) → 507.0M (2025)

Rentokil Initial is a British company that helps businesses keep their workplaces clean, safe, and pest-free. Its two main services are pest control — getting rid of rats, insects, and other unwanted animals — and workplace hygiene, which includes things like washroom supplies and cleaning services. It serves a wide range of customers including restaurants, hospitals, offices, and hotels across many industries.

The company charges customers on a recurring service contract basis, meaning clients pay regularly for ongoing visits and maintenance rather than one-time jobs. Rentokil operates in over 90 countries, making it one of the largest pest control and hygiene services companies in the world. Its 2022 acquisition of Terminix made it the biggest pest control provider in North America, but integrating that large deal has pressured profit margins and returns on capital. Successfully cutting costs and improving efficiency from that merger is the key challenge the business faces in the near term.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+29.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+150.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

1.8%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$2.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Rentokil Initial grew revenue 29% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

13.9%

Thin — 13.9% gross margin

Operating Margin

13.9%

Healthy — 13.9% operating margin

ROCE

4.4%

Weak — 4.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+49.1%

Fast-growing sales (49.1% YoY)

EPS YoY

+19.4%

Earnings growing fast (19.4% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

215%

Turns 215% of profit into real cash

FCF Margin

10.3%

Modest free cash flow (10.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

1.01

Elevated debt (1.01)

Interest Cover

3.22x

Tight — interest eats into profit (3.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

19.0x

Fair value — P/E 19.0

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

-3.7

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield

2.08%

Moderate income — 2.08% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+27.5%

Dividend growing fast (27.5% YoY)

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