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.
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 yearNeutral
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 yearsNeutral
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 yearsNeutral
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
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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.