RTO LN

Rentokil Initial

Industrial/Transportation, Consumer


Presented:10/11/2022
Price:£4.74
Cap:$13.49B
Current Price:£3.50
Cap:$13.51B

Presented

Date10/11/2022
Price£4.74
Market Cap$13.49B
Ent Value$15.73B
P/E Ratio32.63x
Book Value£0.78
Div Yield1.41%
Shares O/S1,854.43M
Ave Daily Vol6,230,732
Short IntN/A

Current

Price£3.50
Market Cap$13.51B
Rentokil Initial Plc engages in the provision of business support services. Its products and services protect people from the pest-borne disease and the risks of poor hygiene. It operates through the following geographical segments: France, Benelux, Germany, Southern Europe, and Latin America. The firm focuses on route-based services, predominately in pest control and hygiene as well as other smaller services including plants, medical, property care. The company was founded by Harold Maxwell-Lefroy in 1925 and is headquartered in Camberley, the United Kingdom.

Publicly traded companies mentioned herein: Rentokil Initial PLC (RTO LN), Rollins Inc (ROL)

Highlights

The presenter is long shares of Rentokil Initial PLC (RTO LN), a global leader of pest control services. Pest control services is a very fragmented $20B market in the US with no clear leader, as market share is allocated to many mom & pops and other small businesses. The company is expanding its presence in US markets through its planned acquisition of Terminix, the second largest pest control company in the US operating in 47 US states. Terminix provides Rentokil with an expansive US footprint and should lead to favorable market share gains. Given Terminix’s history of mismanagement, investors should be excited about the result of the merger and the potential for RTO to improve the business. 

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Idea Discussion

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