Value
6.2/10data confidence 83%| Component | Sub-score |
|---|---|
| P/E | 2.4 |
| P/S | 8.9 |
| Fwd P/E | 7.1 |
| PEG | 7.7 |
| Analyst target | 5.0 |
- ▸Forward P/E: 17.7x
- ▸PEG: 0.89
RTO · Why this verdict
Why Rentokil Initial (RTO) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score5.2/10
ConfidenceHIGH
MacroRISK_OFF
Per-dimension breakdown
Quality
4.3/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 1.8 |
| ROA | 2.6 |
| Gross margin | 0.0 |
| Op margin | 5.2 |
| Net margin | 3.4 |
| Current ratio | 4.5 |
| FCF quality | 10.0 |
| Moat | 4.2 |
| Piotroski F | 6.7 |
- ▸Excellent cash conversion: 176% FCF/NI
- ▸No competitive moat
Growth
7.0/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 3.9 |
| EPS growth | 10.0 |
Momentum
2.9/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 8.1 |
| MACD | 0.1 |
| OBV | 1.0 |
| MA position | 4.0 |
| Volume | 1.1 |
- ▸Uptrend pullback (RSI 34) - buy opportunity
- ▸Volume distribution (falling OBV)
- ▸Above 200-day MA
Sentiment
6.7/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 7.1 |
| Price target | 7.8 |
| erm sentiment | 4.7 |
- ▸Light analyst coverage (4.0) — signal dampened
- ▸Analyst upside: 22%
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.1 |
- ▸No net insider activity — $0 (0.000% of mkt cap)
Peer rank
2.4/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 2.9 |
| quality rank | 3.9 |
| growth rank | 2.9 |
Technical
7.9/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 8.0 |
| support resistance | 8.6 |
| 52w position | 7.1 |
Risk (lower is worse)
5.7/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 9.7 |
| days to cover | 7.5 |
| volatility | 7.6 |
| put call | 0.0 |
| implied vol | 0.0 |
| beta | 10.0 |
| debt equity | 4.8 |
- ▸Elevated put/call: 2.00
- ▸High IV: 98%
Catalyst
5.1/10data confidence 50%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| dividend safety | 5.2 |
- ▸Dividend: 209.0%
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (6)
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:NO_DATE
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- MOMENTUM:2.9<4.5
- ASYMMETRY:0.7<1.5@spot
Warning (0)
none
Reward-to-Risk
0.66
Upside
+3.3%
Downside
5.0%
Sizing output
AVOID
SetupUNKNOWN — No clear chart pattern; technical signals are mixed
EdgeNO_EDGE — No clear edge identified
SuitabilityMODERATE — Balanced profile
Investment implication
The F-path SELL output reflects an overall score of 3.5 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Technical at 7.9) was not enough to lift the adjusted overall above the threshold. Co-occurring failed gates ( MOMENTUM:2.9<4.5, ASYMMETRY:0.7<1.5@spot) reinforce the read. Current asymmetry R:R is 0.66 — supplementary context, not the trigger for this path.
The strongest dimensions are Technical at 7.9, Growth at 7.0, and Sentiment at 6.7; the weakest are Peer rank at 2.4, Momentum at 2.9, and Quality at 4.3. The V9 engine flagged 2 failed gates, producing an asymmetric reward-to-risk of 0.66 and an engine sizing output of AVOID.