Rentokil InitialRTO +2.29%88 Interest Coverage is 2.37 as of Dec. 2025, which is 53% below its 10-year median of 5.05. GuruFocus rates RTO with a GF Score™ of 88/100 and a GF Value™ of $29.87 (Fairly Valued). The stock has 6 warning signs investors should review. Among 812 Business Services companies, Rentokil Initial ranks worse than 80.79% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Rentokil Initial's
Operating Income
for the
six
months ended in Dec. 2025 was $315 Mil. Rentokil Initial's Interest Expense for the
six
months ended in Dec. 2025 was $-133 Mil.
Rentokil Initial's interest coverage for the quarter that ended in Dec. 2025 was 2.37.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Rentokil Initial's Interest Coverage or its related term are showing as below:
RTO'
s Interest Coverage Range Over the Past 10 Years
Min: 2.63 Med: 5.05 Max: 10.82
Current: 2.63
RTO's Interest Coverage is ranked worse than 80.79% of 812
companies
in the Business Services industry
Industry Median: 12.98
vs RTO: 2.63
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Rentokil Initial Interest Coverage Related Terms
Rentokil Initial Interest Coverage Historical Data
* Premium members only.
The historical data trend for Rentokil Initial's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
RTO vs CTAS, CPRT, GPN: Interest Coverage Comparison
For the Specialty Business Services subindustry, Rentokil Initial's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, Rentokil Initial's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Rentokil Initial's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Rentokil Initial (RTO) has a Interest Coverage of 2.37 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rentokil Initial and its competitors. This is 53% below median its historical median of 5.05. Over the past decade, Rentokil Initial's Interest Coverage has ranged from 2.63 to 10.82. According to the industry distribution chart, Rentokil Initial ranks #656 out of 812 companies in the Business Services industry, placing it in the top 80.8%.
Is Rentokil Initial's Interest Coverage too high?
Rentokil Initial's current Interest Coverage of 2.37 is 53% below median its 10-year median of 5.05. Over the past 10 years, this metric has ranged from a low of 2.63 to a high of 10.82. The Business Services industry median Interest Coverage is 12.98. Rentokil Initial's value of 2.37 is 81.7% below this industry median. Based on the distribution chart, Rentokil Initial ranks #656 out of 812 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Rentokil Initial has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rentokil Initial's Interest Coverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Rentokil Initial ranks #656 out of 812 companies for Interest Coverage. This places Rentokil Initial in the lower half of its industry. The industry median Interest Coverage is 12.98. Rentokil Initial's value of 2.37 is 81.7% below this benchmark. Historically, Rentokil Initial's own Interest Coverage has ranged from 2.63 to 10.82 over the past decade. While the company's 10-year median is 5.05 vs. the industry median of 12.98, Rentokil Initial has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rentokil Initial's current Interest Coverage of 2.37 is 81.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rentokil Initial and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rentokil Initial's current Interest Coverage is 2.37, which is 53% below median its own 10-year median of 5.05. 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?
Based on GuruFocus' analysis, Rentokil Initial (RTO) is currently considered Fairly Valued. The stock's GF Value™ is $29.87, compared to a current price of $29.00 — trading 2.9% below its estimated fair value. The current Interest Coverage is 2.37, which is 53% below median its 10-year median of 5.05 and 81.7% below the Business Services industry median of 12.98. Rentokil Initial's overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Rentokil Initial (RTO), the current Interest Coverage is 2.37 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 (RTO) Overvalued in 2026?
Based on GuruFocus' analysis, Rentokil Initial stock appears to be undervalued.
The current stock price of $29.00 is trading 2.9% below its estimated GF Value™ of $29.87.
GuruFocus considers Rentokil Initial to be Fairly Valued.
Key valuation signals for RTO:
Interest Coverage: 2.37 (53% below median its 10-year median of 5.05)
GF Value™: $29.87 vs. price of $29.00 (2.9% below fair value)
Industry Position: 81.7% below the Business Services median (#656 of 812)
No single metric tells the full story. See the RTO 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.
88GF Score
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