Is the business good?
How good a business is RTO?
Rentokil Initial plc earns 6.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.3%
Return on invested capital · cost of capital 9.0% · 2.7 points below what the capital costs: growth destroys value
- Operating margin
- 10%
Operating margin · Specialty Business Services median 10% · fiscal year to FY2024
- Cash conversion
- 1.65×
Cash conversion · 1.50× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.04%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 10% |
| FY2021 | 12% |
| FY2022 | 8.5% |
| FY2023 | 12% |
| FY2024 | 10% |
Details›
- Gross marginfiscal year to FY2024
- 84%
- Operating marginfiscal year to FY2024
- 10%
- Net marginfiscal year to FY2024
- 5.7%
- Free cash flow margin
- 9.3%
- Revenue, trailing twelve months
- $5.44B
- Free cash flow, trailing twelve months
- $507M
- Net income, trailing twelve months
- $307M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Business Services
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