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RTO:LSERentokil Initial plc Analysis

Data as of 2026-08-20 - not real-time

£341.10

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

At £341.10, Rentokil Initial plc shows a bearish moving-average alignment, with shorter averages beneath longer ones. Across the trailing 30 sessions it lost 23.1%. RSI sits at 26.1, which reads as oversold, and MACD momentum is bearish. Recent trading has carved out support near £329.60 and resistance around £443.30.
Multiples put this in fair territory: 37.9 times earnings against the sector's 29.8. Analyst price targets sit 39.5% above the current price. Revenue is growing at 6.7% on a 6.7% profit margin. The 2.73% dividend yield looks stretched against payout coverage.
The composite risk read is 7/10, putting it in elevated territory. With 30-day volatility of 71.1%, a beta of 0.34 and a maximum drawdown of 32.0%, position sizing matters more than entry timing here. The wider market backdrop reads extreme greed at 93 on the fear-greed composite.
Short, medium and long-term reads agree on hold, with conviction of 2/10.

Top Market Events

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Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 2/10

Key Factors

  • Short-term moving averages stacked below long-term ones
  • RSI at 26.1 signals oversold conditions
  • Trading below the 200-day average of 445.75

Medium Term

1–3 years
Neutral
Model confidence: 1/10

Key Factors

  • Short-term moving averages stacked below long-term ones
  • RSI at 26.1 signals oversold conditions
  • P/E of 37.9 versus sector average of 29.8

Long Term

> 3 years
Neutral
Model confidence: 2/10

Key Factors

  • P/E of 37.9 versus sector average of 29.8
  • Dividend yield of 2.73% looks stretched against payout coverage
  • Analyst targets imply +39.5% versus the current price

Key Metrics & Analysis

Financial Health

Revenue Growth6.70%
Profit Margin6.70%
P/E Ratio37.9
ROE5.97%
ROA4.00%
Debt/Equity111.35
P/B Ratio2.1
Op. Cash Flow£930.0M
Free Cash Flow£1.1B
Industry P/E29.8

Technical Analysis

TrendBearish
RSI26.1
Support£329.60
Resistance£443.30
MA 20£374.68
MA 50£414.88
MA 200£445.75
MACDBearish
VolumeDecreasing
Fear & Greed Index92.84

Valuation

Fair Value£569.14
Target Price£475.92
Upside/Downside39.52%
GradeFair
TypeBlend
Dividend Yield2.73%

Risk Assessment

Beta0.34
Volatility71.07%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskMedium
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.