Added to YB: 2026-06-12
Pitch date: 2026-06-10
RTO [neutral]
Rentokil Initial plc
-0.22%
current return
Author Info
Asymmetric Ventures Portfolio is a CFA and investor looking for asymmetric investments in Europe and North America. Sign up for the newsletter.
Company Info
Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, Europe, the United Kingdom, Asia, the Middle East, North Africa, Turkey, and Pacific.
Market Cap
GBP 15.2B
Pitch Price
GBP 4.51
Price Target
N/A
Dividend
2.03%
EV/EBITDA
13.55
P/E
52.93
EV/Sales
2.75
Sector
Commercial Services and Supplies
Category
turnaround
Rentokil Initial plc - $RTO
RTO (overview): World's largest pest-control co post-$6.7B Terminix deal (~83% pest, 17% hygiene). Trades ~10x EV/EBITDA, 23x FCF—1/3 Rollins' multiple. Defensive, recurring rev (70% contracted, 80-90% retention) but ROIC crashed to 6-7% on goodwill, margins 15.5% vs 19%+ guide. Integration lagging, new US-based CEO Duffy + Trian (2.6%) push operational fixes; de-levered to 2.6x. FCF $530M (+29%), 113% conversion. Re-rating hinges on margin/ROIC recovery to ~20%+ over 3-5yrs.
Read full article (23 min)