Rentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares) (RTO)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable, durable businesses with a margin of safety. Rentokil fits the first part: it provides route-based pest control and hygiene services across North America, Europe, the UK, Asia, the Middle East, North Africa, Turkey, and the Pacific, with 63,388 employees. That route density and recurring, compliance-driven demand can create a modest moat. But the numbers do not show a high-quality compounder. At the close on 2026-10-13, the price was $20.37, giving a FairStock P/E of 32.33 and P/B of 1.87 on the provided EPS figure of $0.63. ROE is 5.97% and ROCE is 4.00%, both weak for a business carrying debt-to-equity of 1.11. The Graham Number is $5.57, so the margin of safety is -265.71%; the price is far above that conservative value. Piotroski is 2/9 and Altman Z is 1.75, signs of financial fragility. The FairStock Score is 28/100, and the provided Lynch category is none because only 0 years of filed results are available versus the 3 needed. Growth is unavailable, so I cannot judge trajectory. The 2.98% dividend yield and 0.41 beta are mild positives, and the shares sit near the 52-week low of $19.50. Still, without improving returns, lower leverage, and a wider discount, the price does not look Graham-cheap.

In plain English: Rentokil provides pest control and hygiene services to businesses in many countries. The business has steady, repeat service needs, but its profits and returns are thin and it uses a lot of debt. At the recent price, the shares look expensive compared with the company’s earnings and asset value, and its financial-strength scores are weak.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer