Rentokil Initial PLC (GB00B082RF11) | |||
3,54 GBXStand (close): 03.07.25 |
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Datum / Uhrzeit | Titel | Bewertung |
17.04.25 12:31:26 | Do You Think Rentokil Initial plc (RTO) is a Low Volatility Stock? | ![]() |
Oakmark Funds, advised by Harris Associates, released its “Oakmark International Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. For the quarter ended March 31, 2025, the fund's Investor Share Class returned 7.88% compared to the MSCI World ex USA Index’s 6.20% return. Since its inception, the fund returned 8.37% compared to a 6.07% return for the index. Financials and health care sector contributed to the fund’s performance in the quarter, while communication services and information technology detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Oakmark International Fund highlighted stocks such as Rentokil Initial plc (NYSE:RTO). Rentokil Initial plc (NYSE:RTO) is a route-based services provider. The one-month return of Rentokil Initial plc (NYSE:RTO) was -1.40%, and its shares lost 22.69% of their value over the last 52 weeks. On April 16, 2025, Rentokil Initial plc (NYSE:RTO) stock closed at $21.84 per share with a market capitalization of $11.064 billion. Oakmark International Fund stated the following regarding Rentokil Initial plc (NYSE:RTO) in its Q1 2025 investor letter: "Rentokil Initial plc (NYSE:RTO) is the largest pest control company globally. We think pest control is a good business that grows GDP plus with low volatility, earns at tractive margins, and has low capital intensity with strong cash flow generation. As a market leader, Rentokil additionally benefits from scale ad vantages that drive lower procurement and customer acquisition costs, and greater customer monetization, thanks to the breadth of products and ser vices the company can offer at a premium price. Due to industry fragmentation, Rentokil also has a strong pipeline of acquisitions with attractive eco nomics. While most of Rentokil’s mergers and acquisitions are bolt-ons, they have occasionally done large deals. Their most recent large deal, the acquisition of Terminix, has gone poorly to-date and resulted in a share price decline in excess of the deal value. While Terminix’s integration will take several quarters to complete, we believe they will ultimately succeed and that the resulting business will be a stronger and more profitable one that can deliver growth in line with the industry's average. This should drive a re-rating in the shares towards peer and private market multiples. We believe the market has overly discounted the business’s future prospects."Is Billion Dollar Hedge Fund Voss Capital Crazy About Rentokil Initial (RTO)? A specialist cleaning service team in full protective equipment removing hazardous waste. Story Continues Rentokil Initial plc (NYSE:RTO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Rentokil Initial plc (NYSE:RTO) at the end of the fourth quarter compared to 19 in the third quarter. While we acknowledge the potential of Rentokil Initial plc (NYSE:RTO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Rentokil Initial plc (NYSE:RTO) in another article, where we shared Silver Beech Capital's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. View Comments |
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14.04.25 13:24:00 | America's Itchiest Cities: Terminix Unveils List of Top Mosquito Infested Cities | ![]() |
MEMPHIS, Tenn., April 14, 2025 /PRNewswire/ -- Terminix®, a Rentokil Terminix company, announced today its annual list of the Top 50 Most Mosquito-Infested Cities in the U.S. based on 2024 service data from more than 300 branches nationwide.Terminix Unveils List of Top Mosquito Infested Cities California and Texas lead the rankings, with Los Angeles taking the top spot, followed by Dallas (#2). New York City (#3), Atlanta (#4), and Houston (#5) rounding out the top five. Cities like Philadelphia, Washington, D.C., Orlando, and San Francisco also ranked high on the list, underscoring the widespread nature of mosquito problems from coast to coast. "As spring temperatures rise, we're already seeing mosquito activity ramp up across the country," said Dr. Sydney Crawley, Principal Vector Scientist at Terminix. "Mosquitoes aren't just a backyard nuisance—they can also carry diseases that pose real public health risks. Our annual rankings help raise awareness and encourage people to take proactive steps to protect themselves, their families, and their communities." Top 10 Most Mosquito-Infested Cities: Los Angeles Dallas New York City Atlanta Houston Philadelphia Washington, D.C. Orlando, FL Tampa-St. Petersburg, FL San Francisco Tips for Mosquito Prevention To protect against mosquitoes and reduce exposure to a mosquito-borne illness, Terminix recommends the following steps: Add mosquito traps. Well-designed mosquito traps can reduce the number of host-seeking mosquitoes that affect individuals trying to enjoy outdoor spaces. Mosquito trapping should be used in conjunction with a comprehensive integrated mosquito management plan, using multiple tactics to control mosquitoes both in their immature and adult life stages. Tip and Toss. Remove standing water from containers weekly. Female mosquitoes of every species need water to lay their eggs. An item as small as a bottle cap can hold enough water to support the development of mosquito larvae. Reduce breeding areas. Eliminate any standing water after rainfall. Common hot spots include gutters, downspouts and low-lying areas, but don't forget about dogbowls, kiddie pools, bird baths, etc. Use EPA-registered repellents such as DEET. The higher the percentage, the longer the protection. Work with a trusted, local pest expert. Trained professionals can recommend an integrated pest management plan, providing solutions to address the problem at the source. To learn more about mosquito prevention and Terminix's latest product offerings for on-demand protection, please visit: www.terminix.com/mosquito-control. Story Continues About Rentokil Terminix Rentokil Terminix is the leading provider of residential and commercial services in North America. The company provides health, hygiene, and environment services, and pest management services, including protection against termites, mosquitoes, rodents and other pests. The company is part of Rentokil Initial plc (NYSE: RTO), one of the largest business services companies in the world. To learn more, visit EnhancedPestControl.com, or linkedin.com/company/rentokilterminix. MEDIA CONTACT: Hannah Bernhard Hannah.Bernhard@rentokil.com(PRNewsfoto/Terminix)Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/americas-itchiest-cities-terminix-unveils-list-of-top-mosquito-infested-cities-302427644.html SOURCE Terminix View Comments |
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05.04.25 07:18:56 | Is Rentokil Initial plc's (LON:RTO) Recent Price Movement Underpinned By Its Weak Fundamentals? | ![]() |
With its stock down 16% over the past three months, it is easy to disregard Rentokil Initial (LON:RTO). We, however decided to study the company's financials to determine if they have got anything to do with the price decline. Stock prices are usually driven by a company’s financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. In this article, we decided to focus on Rentokil Initial's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. How Do You Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Rentokil Initial is: 7.3% = UK£307m ÷ UK£4.2b (Based on the trailing twelve months to December 2024). The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each £1 of shareholders' capital it has, the company made £0.07 in profit. View our latest analysis for Rentokil Initial Why Is ROE Important For Earnings Growth? We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. Rentokil Initial's Earnings Growth And 7.3% ROE When you first look at it, Rentokil Initial's ROE doesn't look that attractive. Yet, a closer study shows that the company's ROE is similar to the industry average of 7.5%. On the other hand, Rentokil Initial reported a moderate 9.6% net income growth over the past five years. Considering the moderately low ROE, it is quite possible that there might be some other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently. Story Continues We then compared Rentokil Initial's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 21% in the same 5-year period, which is a bit concerning.LSE:RTO Past Earnings Growth April 5th 2025 Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is Rentokil Initial fairly valued compared to other companies? These 3 valuation measures might help you decide. Is Rentokil Initial Using Its Retained Earnings Effectively? The high three-year median payout ratio of 58% (or a retention ratio of 42%) for Rentokil Initial suggests that the company's growth wasn't really hampered despite it returning most of its income to its shareholders. Besides, Rentokil Initial has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 43% over the next three years. The fact that the company's ROE is expected to rise to 13% over the same period is explained by the drop in the payout ratio. Summary On the whole, we feel that the performance shown by Rentokil Initial can be open to many interpretations. While the company has posted a decent earnings growth, We do feel that the earnings growth number could have been even higher, had the company been reinvesting more of its earnings at a higher rate of return. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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27.03.25 12:56:33 | Silver Beech’s Investment Thesis for Rentokil Initial (RTO) | ![]() |
Silver Beech Capital, a value-oriented investment management firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Since its inception, Silver Beech has achieved a net annualized return of 22.6%, representing an annualized outperformance of 9.5% over the S&P 500. The fund returned 23.9% for the full year, slightly behind the S&P 500’s return of 25.0% and significantly outpacing the Russell 2000’s return of 11.5%. Outsized profits in financials, energy, and consumer sector investments drove the strong performance of the portfolio in 2024. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024. In its fourth quarter 2024 investor letter, Silver Beech Capital emphasized stocks such as Rentokil Initial plc (NYSE:RTO). Rentokil Initial plc (NYSE:RTO) is a route-based services provider. The one-month return of Rentokil Initial plc (NYSE:RTO) was -5.95%, and its shares lost 24.05% of their value over the last 52 weeks. On March 26, 2025, Rentokil Initial plc (NYSE:RTO) stock closed at $22.90 per share with a market capitalization of $11.51 billion. Silver Beech Capital stated the following regarding Rentokil Initial plc (NYSE:RTO) in its Q4 2024 investor letter: "Rentokil Initial plc (NYSE:RTO) is the world’s largest pest services company. The pest services business model is attractive because it is capital-light, revenues are acyclical and mostly recurring with high retention rates, costs are variable, and the sector benefits from structural growth tailwinds. As society grows wealthier, it prioritizes pest control and consumes more pest control services; this durable trend has driven GDP+ growth in the pest services sector for decades and will drive GDP+ growth for years to come. Story Continues Is Billion Dollar Hedge Fund Voss Capital Crazy About Rentokil Initial (RTO)? A specialist cleaning service team in full protective equipment removing hazardous waste. Rentokil Initial plc (NYSE:RTO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Rentokil Initial plc (NYSE:RTO) at the end of the fourth quarter compared to 19 in the third quarter. While we acknowledge the potential of Rentokil Initial plc (NYSE:RTO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Rentokil Initial plc (NYSE:RTO) in another article, where we shared Brown Advisors Global Leaders Strategy's views on the company. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. View Comments |
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26.03.25 10:30:00 | Rentokil Initial PLC Announces Annual Financial Report | ![]() |
Annual Report and Annual General Meeting CRAWLEY, GB / ACCESS Newswire / March 26, 2025 / In compliance with Listing Rule 6.4.1, the Company announces that the following documents, in unedited full text, have today been filed with the Financial Conduct Authority and are available for inspection via the National Storage Mechanism at https://data.fca.org.uk/#/nsm/nationalstoragemechanism: Annual Report and Financial Statements for the year ended 31 December 2024 (the Annual Report 2024); Notice of 2025 Annual General Meeting (AGM); and Proxy Form for the 2025 AGM. The documents will be posted today, and the Annual Report 2024 and the Notice of 2025 AGM have been published on the Company's website at rentokil-initial.com/investors. The 2025 AGM will be held at, and broadcast from, the Company's offices at Compass House, Manor Royal, Crawley, RH10 9PY on Wednesday 7 May 2025 at 2:00pm. Full details of how to participate in the meeting can be found in the Notice of Meeting. In addition, the Company has filed its Annual Report on Form 20-F with the US Securities and Exchange Commission (SEC). The document is available for viewing on the SEC website at www.sec.gov and also on the Company's website at rentokil-initial.com/investors. If you would like to receive a hard copy of the Annual Report 2024 please contact the Company Secretariat team by email at secretariat@rentokil-initial.com or on +44 (0)1293 858000. Additional note Following the printing of the Annual Report, the Carbon Disclosure Project informed the Company about an error in its scoring infrastructure. Following the recalculation, Rentokil Initial's Climate rating was recalculated to C, rather than D. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. SOURCE: Rentokil Initial plc View the original press release on ACCESS Newswire View Comments |
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09.03.25 07:04:38 | Rentokil Initial (LON:RTO) Is Paying Out A Dividend Of £0.0593 | ![]() |
The board of Rentokil Initial plc (LON:RTO) has announced that it will pay a dividend on the 14th of May, with investors receiving £0.0593 per share. The dividend yield will be 2.7% based on this payment which is still above the industry average. See our latest analysis for Rentokil Initial Rentokil Initial's Projected Earnings Seem Likely To Cover Future Distributions Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Before this announcement, Rentokil Initial was paying out 75% of earnings, but a comparatively small 49% of free cash flows. Since the dividend is just paying out cash to shareholders, we care more about the cash payout ratio from which we can see plenty is being left over for reinvestment in the business. Over the next year, EPS is forecast to expand by 89.0%. If the dividend continues along recent trends, we estimate the payout ratio will be 45%, which is in the range that makes us comfortable with the sustainability of the dividend.LSE:RTO Historic Dividend March 9th 2025 Dividend Volatility Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2015, the annual payment back then was £0.0231, compared to the most recent full-year payment of £0.0909. This works out to be a compound annual growth rate (CAGR) of approximately 15% a year over that time. It is great to see strong growth in the dividend payments, but cuts are concerning as it may indicate the payout policy is too ambitious. Rentokil Initial May Find It Hard To Grow The Dividend Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. It's not great to see that Rentokil Initial's earnings per share has fallen at approximately 4.5% per year over the past five years. Declining earnings will inevitably lead to the company paying a lower dividend in line with lower profits. Earnings are forecast to grow over the next 12 months and if that happens we could still be a little bit cautious until it becomes a pattern. Our Thoughts On Rentokil Initial's Dividend Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. This company is not in the top tier of income providing stocks. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. To that end, Rentokil Initial has 3 warning signs (and 1 which is concerning) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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07.03.25 05:20:21 | Rentokil Initial Full Year 2024 Earnings: EPS Misses Expectations | ![]() |
Rentokil Initial (LON:RTO) Full Year 2024 Results Key Financial Results Revenue: UK£5.44b (up 1.1% from FY 2023). Net income: UK£307.0m (down 19% from FY 2023). Profit margin: 5.6% (down from 7.1% in FY 2023). EPS: UK£0.12 (down from UK£0.15 in FY 2023).LSE:RTO Earnings and Revenue History March 7th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Rentokil Initial EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.6%. Looking ahead, revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Commercial Services industry in the United Kingdom. Performance of the British Commercial Services industry. The company's shares are down 13% from a week ago. Risk Analysis You should learn about the 3 warning signs we've spotted with Rentokil Initial (including 1 which is a bit unpleasant). Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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03.03.25 12:29:01 | Do You Think the Merger with Terminix will Strengthen Rentokil Initial plc (RTO)’s Route Density and Scale? | ![]() |
Brown Advisors, an investment management company, released its “Brown Advisors Global Leaders Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the letter the firm discusses its performance, four new investments made in 2024, lessons from one exit, and insights from its annual offsite. The strategy targets double-digit annualized returns over five years, aiming for 10%+ to double investors’ money every seven years. In 2024, the UCITS C-share USD returned 14.7% net of fees, while the MSCI ACWI benchmark returned 17.5%. Since inception, the Global Leaders UCITS C-share USD has delivered an annualized 11.4% net after fees, surpassing firm’s target, compared to the MSCI ACWI's 8.9%. In addition, please check the fund’s top five holdings to know its best picks in 2024. In its fourth quarter 2024 investor letter, Brown Advisors Global Leaders Strategy emphasized stocks such as Rentokil Initial plc (NYSE:RTO). Rentokil Initial plc (NYSE:RTO) is a route-based services provider. The one-month return of Rentokil Initial plc (NYSE:RTO) was 2.90%, and its shares lost 7.82% of their value over the last 52 weeks. On February 28, 2025, Rentokil Initial plc (NYSE:RTO) stock closed at $25.21 per share with a market capitalization of $12.684 billion. Brown Advisors Global Leaders Strategy stated the following regarding Rentokil Initial plc (NYSE:RTO) in its Q4 2024 investor letter: "Rentokil Initial plc (NYSE:RTO) is the global leader in pest control and became the largest North American pest control company in both the commercial and residential settings after its acquisition of Terminix in 2022. Pest control is highly non-deferrable in commercial markets with multi-year contracts and underpinned by mid-single digit structural growth. It is much more transactional in residential settings (“get that rat out of here”) with annual contracts at best. It is the industry’s barriers to scale that allow Rentokil, and close rival Rollins, to grow and consolidate the market. Bolt-on acquisitions improve technicians’ route density which reinforce scale economies. In US commercial markets the top three players account for over 80% of revenues, within US residential pest control the top four players are over 70% of industry sales. Terminix merger integration has not gone smoothly so far, which translated into a profit warning during Q3 2024, allowing us to significantly build out our initial position during 4Q24. The integration will likely take time as management combines branches to optimize their network, whilst investing in much-needed back-end technology. On a 5-year view, we expect the merger to strengthen Rentokil’s route density and scale, to deliver margin and Return on Invested Capital (RoIC) improvement with a mid-teens base case IRR." Story Continues Is Billion Dollar Hedge Fund Voss Capital Crazy About Rentokil Initial (RTO)? A specialist cleaning service team in full protective equipment removing hazardous waste. Rentokil Initial plc (NYSE:RTO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Rentokil Initial plc (NYSE:RTO) at the end of the fourth quarter compared to 19 in the third quarter. While we acknowledge the potential of Rentokil Initial plc (NYSE:RTO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we discussed Rentokil Initial plc (NYSE:RTO) and shared Vulcan Value Partners' views on the company. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. View Comments |
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28.02.25 09:00:54 | FTSE 100 LIVE: London markets lower as Trump says UK trade deal without tariffs a possibility | ![]() |
The FTSE 100 (^FTSE) and European markets fell in early trade on Friday following a late Thursday press conference by US president Donald Trump and UK prime minister Keir Starmer, at which the pair said they are working on striking a trade deal without tariffs. Global markets have been jittery in recent weeks as Trump used executive orders to apply broad-brush tariffs to countries such as China and Canada. He also said he would apply a 25% tariff on goods being imported from EU countries and a 25% tax on steel and aluminium imports. The willingness to negotiate with the UK on terms comes with "hard yards" ahead, said health secretary Wes Streeting on BBC Breakfast. The FTSE 100 (^FTSE) fell 0.4% in early trade, dragged down by share price dips for St James's Place (STJ.L) and Rentokil (RTO.L). British Airways owner IAG (IAG.L) was the top riser following results released this morning. Germany's DAX (^GDAXI) fell 0.7% and the CAC 40 (^FCHI) in Paris dropped 0.7%. "Investors remain on edge following president Donald Trump’s unexpected announcement of a 25% tariff on Canadian and Mexican imports, set to take effect on 4 March," said Naeem Aslam, chief investment officer at Zaye Capital Markets. "This move, along with increased duties on goods from China and the European Union, has raised fears of retaliatory measures, further disrupting global supply chains and corporate earnings." FTSE Index - Delayed Quote•USD (^FTSE) Follow View Quote Details 8,748.32 - (-0.09%) As of 9:26:20 AM GMT. Market Open. ^FTSE^GDAXI ^FCHI Advanced ChartLIVE6 updates Today at 8:28 AM UTC Lucy Harley-McKeown British Airways owner stock surges in early trade following results International Consolidated Airlines Group stock rose around 3.7% as markets opened in London, as traders look to quarterly results showing its operating profit surged by 22.1% last year to 4.3bn euros (£3.6bn). The latest figures are an increase from 3.5bn euros (£2.9bn) in 2023. Its passenger revenue per available seat kilometre flown increased by 3.1%, while fuel costs per unit declined by 5.2%, PA reported. Today at 8:23 AM UTC Lucy Harley-McKeown US stocks waver in premarket US stocks were slightly higher in premarket trade, after feeling the pressure during the week. Today at 8:20 AM UTC Lucy Harley-McKeown Cost of borrowing key in house price value Ben Parks, managing director at Orchard Financial Services, said: Steve Humphrey, founder at The Mortgage Pod, said: Today at 8:17 AM UTC Lucy Harley-McKeown UK house prices rise in February ahead of stamp duty deadline UK house prices rose in February to £270,493 as buyers rush to beat the April stamp duty deadline. The average UK house price increased month-on-month for the sixth month in a row, according to Nationwide Building Society. Property values increased by 0.4% month-on-month in February. However, the annual rate of house price growth dropped slightly, rising 3.9% in February compared to 4.1% in January. Robert Gardner, Nationwide’s chief economist, said: “House prices increased by 0.4% month-on-month, after taking account of seasonal effects – the sixth consecutive monthly gain. “Housing market activity has also remained resilient in recent months, despite ongoing affordability challenges. Indeed, the second half of 2024 saw a noticeable pick-up in total housing transactions, which were up 14% compared with the same period in 2023.” Read more on Yahoo Finance UK Today at 8:15 AM UTC Lucy Harley-McKeown How US stocks fared on Thursday From our US team: Stocks plummeted on Thursday as tech sold off following Nvidia's (NVDA) latest earnings report while investors took stock of the economy amid President Trump's latest tariff pledges. The S&P 500 (^GSPC) fell more than 1.6%, while the tech-heavy Nasdaq Composite (^IXIC) dropped 2.8%. The Dow Jones Industrial Average (^DJI) dropped 0.4%. Investors dug into Nvidia's quarterly earnings beat, which signalled plenty of scope for growth as it eased worries about DeepSeek and faltering AI demand. The results initially met a muted response as its profit outlook raised doubts on Wall Street. Nvidia's stock erased early morning gains to drop more than 8%. Meanwhile, more signs emerged of a sluggish US economy. Data released Thursday showed GDP grew at an unrevised 2.3% annualized pace last quarter, confirming a slowdown from the previous quarter. Weekly initial jobless claims jumped to 242,000, higher than the 221,000 expected by economists in a sign of a softening labor market. Today at 8:13 AM UTC Lucy Harley-McKeown Good morning! Hello from London. Lucy Harley-McKeown here, ready to bring the markets news of the day. Overnight we had news out of Washington. prime minister Kier Starmer met president Donald Trump to talk tech and trade. In a press conference last night the pair said they would continue talks on tariffs. This morning we've also had the latest on house prices from Nationwide, with more property transaction data coming later on. The corporate calendar is looking less interesting today, following Nvidia (NVDA) results on Wednesday. Let's get to it. View Comments |
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12.02.25 05:57:55 | Here's Why We Think Rentokil Initial (LON:RTO) Might Deserve Your Attention Today | ![]() |
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Rentokil Initial (LON:RTO). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. See our latest analysis for Rentokil Initial Rentokil Initial's Improving Profits Even modest earnings per share growth (EPS) can create meaningful value, when it is sustained reliably from year to year. So it's no surprise that some investors are more inclined to invest in profitable businesses. Rentokil Initial boosted its trailing twelve month EPS from UK£0.13 to UK£0.16, in the last year. There's little doubt shareholders would be happy with that 24% gain. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. EBIT margins for Rentokil Initial remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 12% to UK£5.4b. That's a real positive. You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.LSE:RTO Earnings and Revenue History February 12th 2025 You don't drive with your eyes on the rear-view mirror, so you might be more interested in this freereport showing analyst forecasts for Rentokil Initial's future profits. Are Rentokil Initial Insiders Aligned With All Shareholders? Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. Of course, we can never be sure what insiders are thinking, we can only judge their actions. It's nice to see that there have been no reports of any insiders selling shares in Rentokil Initial in the previous 12 months. So it's definitely nice that Independent Non-Executive Director Sally Kate Johnson bought UK£12k worth of shares at an average price of around UK£4.62. Purchases like this can help the investors understand the views of the management team; in which case they see some potential in Rentokil Initial. Story Continues It's reassuring that Rentokil Initial insiders are buying the stock, but that's not the only reason to think management are fair to shareholders. Namely, Rentokil Initial has a very reasonable level of CEO pay. The median total compensation for CEOs of companies similar in size to Rentokil Initial, with market caps over UK£6.4b, is around UK£4.6m. Rentokil Initial's CEO took home a total compensation package worth UK£3.3m in the year leading up to December 2023. That is actually below the median for CEO's of similarly sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense. Is Rentokil Initial Worth Keeping An Eye On? One important encouraging feature of Rentokil Initial is that it is growing profits. And there's more to Rentokil Initial, with the insider buying and modest CEO pay being a great look for those with an eye on the company. The sum of all that, points to a quality business, and a genuine prospect for further research. We don't want to rain on the parade too much, but we did also find 2 warning signs for Rentokil Initial (1 shouldn't be ignored!) that you need to be mindful of. Keen growth investors love to see insider activity. Thankfully, Rentokil Initial isn't the only one. You can see a a curated list of British companies which have exhibited consistent growth accompanied by high insider ownership. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |