RENTOKIL INITIAL PLC /FI

RTOdata completeness 100%3 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

RENTOKIL INITIAL PLC /FI earns about 7% on invested capital, below its ~9% cost of capital, with a roughly flat share count — no moat visible in the numbers. The estimate methods put fair value between $1.93 and $4.18 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue$6.39B1$6.62B1$6.91B1
Net income$474M2$392M2$470M2
Operating cash flow$916M3$868M3$972M3
Capital expenditure$207M4$219M4$208M4
Free cash flow (derived)$709M3$649M3$764M3
Total debt$4.62B5$5.41B5
Cash & equivalents$1.99B6$1.16B6$2.32B6
Diluted shares2.52B2.52B2.53B

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$21.76
your share of equity
Profit it earned you last year
$1.86
Free cash flow it threw off
$3.02
Debt you’d be carrying
$21.41

10 shares is a claim on $21.76 of net worth that earned you $1.86 and generated $3.02 of cash last year, against $21.41 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
7% avg · 3y
FY23 14%FY24 4%FY25 3%

It earned about 7% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+0% shares · 3y

Share count is roughly flat over 3 years — little dilution, little buyback. Total debt has risen 17% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $1.93 and $4.18 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$4.18
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$709M
DCF · Growth Exit 5Y
$3.76
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$709M
Earnings Power Value
$1.93
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$470M
  • growthAssumed0.0%
Graham Number
$3.01
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $3.76
The three cases
Bear0.0%$2.79
Base5.0%$3.76
Bull10.0%$4.92

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2023-12-31 · accession 0001104659-26-034062 (RevenueFromContractsWithCustomers)
  2. 20-F · period ending 2023-12-31 · accession 0001104659-26-034062 (ProfitLossAttributableToOwnersOfParent)
  3. 20-F · period ending 2023-12-31 · accession 0001104659-26-034062 (CashFlowsFromUsedInOperatingActivities)
  4. 20-F · period ending 2023-12-31 · accession 0001104659-26-034062 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  5. 20-F · period ending 2024-12-31 · accession 0001104659-26-034062 (Borrowings)
  6. 20-F · period ending 2023-12-31 · accession 0001104659-26-034062 (CashAndCashEquivalents)