Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Rentokil Initial had a gross margin of N/A% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Rentokil Initial Gross Margin % Related Terms
Rentokil Initial Gross Margin % Historical Data
* Premium members only.
The historical data trend for Rentokil Initial's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:RTON vs CTAS, CPRT, GPN: Gross Margin % Comparison
For the Specialty Business Services subindustry, Rentokil Initial's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rentokil Initial Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Rentokil Initial's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rentokil Initial's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Rentokil Initial (MEX:RTON) has a Gross Margin % of 0.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Rentokil Initial and its competitors. Over the past decade, Rentokil Initial's Gross Margin % has ranged from 79.16 to 83.54. According to the industry distribution chart, Rentokil Initial ranks #110 out of 1007 companies in the Business Services industry, placing it in the top 10.9%.
Is Rentokil Initial's Gross Margin % too high?
Rentokil Initial's current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 79.16 to a high of 83.54. Based on the distribution chart, Rentokil Initial ranks #110 out of 1007 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Rentokil Initial has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Rentokil Initial's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Rentokil Initial ranks #110 out of 1007 companies for Gross Margin %. This places Rentokil Initial in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.46. Historically, Rentokil Initial's own Gross Margin % has ranged from 79.16 to 83.54 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Rentokil Initial and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rentokil Initial's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rentokil Initial stock overvalued right now?
Rentokil Initial (MEX:RTON) has a current Gross Margin % of 0.00%. The stock's GF Value™ is MXN117.99, compared to a current price of MXN116.32 — trading 1.4% below its estimated fair value. The current Gross Margin % is 0.00%. Rentokil Initial's overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Rentokil Initial (MEX:RTON), the current Gross Margin % is 0.00% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rentokil Initial (MEX:RTON) Overvalued in 2026?
Based on GuruFocus' analysis, Rentokil Initial stock appears to be undervalued.
The current stock price of MXN116.32 is trading 1.4% below its estimated GF Value™ of MXN117.99.
Key valuation signals for MEX:RTON:
Gross Margin %: 0.00%
GF Value™: MXN117.99 vs. price of MXN116.32 (1.4% below fair value)
No single metric tells the full story. See the MEX:RTON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rentokil Initial is the largest global provider of route-based pest control and commercial hygiene services, operating in over 90 countries, with its largest operations in the United States following the acquisition of Terminix. The group also offers a range of specialist route-based services, including office and commercial space plant care, property care, and workwear rentals. The group serves a diverse client base of global food producers, hotel chains, industrial goods companies, restaurants, and individual residential customers.
87GF Score
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