Rentokil Initial PLC (LON:RTO)


🦟 Rentokil Initial PLC: Global Leader in Pest Control & Hygiene

Founded in 1927, Rentokil Initial is a multinational business services company specializing in pest control, hygiene, and workwear solutions. Headquartered in Surrey, UK, it operates in over 80 countries and is a constituent of the FTSE 100, reflecting its scale and stability.

📈 Share Price & Performance (as of 31 July 2025)

  • Share Price: 382.0p
  • 1 Day: +10.21%
  • 52-Week High: 502.4p
  • 52-Week Low: 306.0p

The stock surged today, possibly in anticipation of its earnings report, showing strong investor sentiment.

💰 Valuation Metrics

  • P/E Ratio: 31.36
    • Well above the FTSE average, indicating premium pricing for consistent earnings.
  • PEG Ratio: ~6.10
    • Suggests that growth is already priced in, typical for mature service firms with stable margins.

💸 Dividend & Yield

  • Dividend Yield: 2.62%
  • Payout Ratio: ~74.6%
    • Reflects a generous dividend policy, though leaves less room for reinvestment.

🧠 Conclusion

Rentokil Initial offers defensive stability and global diversification, but its high PEG ratio implies limited upside unless growth accelerates. For portfolios seeking steady income and low volatility, it remains a reliable pick, though not necessarily undervalued at current levels.


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