- Rentokil expects its full-year adjusted operating margin to be around 15.5%, compared to an estimated 16.2%.
- In North America, the forecasted adjusted operating margin is approximately 17.2%, while the estimate was 18.5%.
- Positive momentum was noted in North America sales activity by the end of 2Q, but trading in July and August fell short of expectations.
- The rest of the group’s performance remains strong and consistent.
- Rentokil anticipates an additional currency headwind of about £10 million for FY 2024, given the current exchange rates.
- The full-year 2024 Group Adjusted PBTA (Profit Before Tax and Amortisation) is now expected to be around £700 million.
- Analyst recommendations: 11 buy ratings, 8 hold ratings, and no sell ratings.
Rentokil Initial on Smartkarma
Analyst coverage of Rentokil Initial on Smartkarma is heating up with a bullish report titled “Trapping the Royal Rat-Catcher” by Jesus Rodriguez Aguilar. The report discusses Philip Jansen’s alleged takeover bid for Rentokil Initial, a renowned pest control company in the FTSE 100. Jansen aims to revitalize Rentokil’s US operations and enhance synergy with Terminix, potentially leading to market consolidation. Rentokil’s valuation comparison with Rollins is highlighted, with Rollins trading at 33.7x EV/NTM EBIT compared to Rentokil’s 15.7x valuation. The report underscores Rentokil’s global leadership in pest control and hygiene services, emphasizing its strong market presence and upcoming H1 results on 25 July.
A look at Rentokil Initial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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In analyzing Rentokil Initial‘s long-term outlook using the Smartkarma Smart Scores, the company appears to have a promising future ahead. With a solid Growth score of 4 and Momentum score of 4, Rentokil Initial is positioned for potential growth and market traction in the coming years. The company’s emphasis on expanding its services in pest control, hygiene, workwear, facilities, and plants can contribute to its ongoing success in providing essential support services to various organizations.
While Rentokil Initial scores lower on Value and Resilience factors with scores of 2 for both, the company’s above-average Dividend score of 3 indicates a moderate yet steady dividend payout. Overall, Rentokil Initial‘s positive scores in Growth and Momentum suggest a bright outlook for its continued evolution and relevance in the facilities management and support services sector.
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Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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