Should you buy Rentokil stock? (October 2024)

Published first at https://www.3minutebreakdowns.com Rentokil stock analysis. Ticker: $RTO.L This UK stock just plunged 30% percent but activist investors think it's a buy. Rentokil Plc has been in the pest control business for almost 100 years but the company issued a profit warning last month that sent shares lower. At the latest price, Rentokil now has a market value of 9 billion pounds. With 1.6 billion of cash and 4.3 billion of debt on the balance sheet, the total enterprise value is 11.7 billion. Revenue over the last 12 months comes to 5.4 billion with 392 million of net income and 542 million of free cash flow and 1 billion of EBITDA. So Rentokil is now valued at 23 times earnings or 11 times EBITDA. That valuation is at the lower end of the company’s historical range. And it’s sharply lower than Rentokil’s biggest competitor Rollins Inc which currently trades at over 50 times earnings. #investing #stocks #stockmarket #rentokil