Rentokil Initial Plc. ADR (RTO) Stock: A Value Analysis

The price-to-earnings ratio for Rentokil Initial Plc. ADR (NYSE: RTO) is 30.14x, which is above its average ratio. Moreover, the 36-month beta value for RTO is 1.06. Analysts have varying opinions on the stock, with 0 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”

The public float for RTO is 502.16M and currently, short sellers hold a 0.84% of that float. On April 18, 2024, RTO’s average trading volume was 771.07K shares.

RTO) stock’s latest price update

Rentokil Initial Plc. ADR (NYSE: RTO)’s stock price has increased by 2.02 compared to its previous closing price of 27.69. However, the company has seen a -1.43% decrease in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-17 that Investors interested in stocks from the Business – Services sector have probably already heard of Geo Group (GEO) and Rentokil Initial PLC (RTO). But which of these two stocks is more attractive to value investors?

RTO’s Market Performance

RTO’s stock has fallen by -1.43% in the past week, with a monthly drop of -7.95% and a quarterly rise of 11.18%. The volatility ratio for the week is 1.87% while the volatility levels for the last 30 days are 1.92% for Rentokil Initial Plc. ADR The simple moving average for the past 20 days is -4.63% for RTO’s stock, with a -10.86% simple moving average for the past 200 days.

Analysts’ Opinion of RTO

Many brokerage firms have already submitted their reports for RTO stocks, with BofA Securities repeating the rating for RTO by listing it as a “Neutral.” The predicted price for RTO in the upcoming period, according to BofA Securities is $29 based on the research report published on January 24, 2024 of the current year 2024.

RTO Trading at -1.70% from the 50-Day Moving Average

After a stumble in the market that brought RTO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -32.01% of loss for the given period.

Volatility was left at 1.92%, however, over the last 30 days, the volatility rate increased by 1.87%, as shares sank -8.46% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +11.75% upper at present.

During the last 5 trading sessions, RTO fell by -1.43%, which changed the moving average for the period of 200-days by -27.58% in comparison to the 20-day moving average, which settled at $29.49. In addition, Rentokil Initial Plc. ADR saw -1.26% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for RTO

Current profitability levels for the company are sitting at:

  • 0.14 for the present operating margin
  • 0.14 for the gross margin

The net margin for Rentokil Initial Plc. ADR stands at 0.07. The total capital return value is set at 0.09. Equity return is now at value 9.34, with 3.32 for asset returns.

Based on Rentokil Initial Plc. ADR (RTO), the company’s capital structure generated 0.52 points at debt to capital in total, while cash flow to debt ratio is standing at 0.17. The debt to equity ratio resting at 1.08. The interest coverage ratio of the stock is 4.03.

Currently, EBITDA for the company is 1.36 billion with net debt to EBITDA at 2.84. When we switch over and look at the enterprise to sales, we see a ratio of 2.71. The receivables turnover for the company is 5.89for trailing twelve months and the total asset turnover is 0.48. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.05.

Conclusion

To wrap up, the performance of Rentokil Initial Plc. ADR (RTO) has been bad in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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