Rentokil InitialRTO +2.29%88 Net Margin % is 7.96% as of Dec. 2025, which is 12% above its 10-year median of 7.11. 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 1,074 Business Services companies, Rentokil Initial ranks better than 65.08% on this metric.
The historical rank and industry rank for Rentokil Initial's Net Margin % or its related term are showing as below:
RTO'
s Net Margin % Range Over the Past 10 Years
Min: -3.98 Med: 7.11 Max: 28.3
Current: 6.81
RTO's Net Margin % is ranked better than 65.08% of 1074
companies
in the Business Services industry
Industry Median: 3.83
vs RTO: 6.81
Rentokil Initial (NYSE:RTO) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Rentokil Initial Net Margin % Related Terms
Rentokil Initial Net Margin % Historical Data
* Premium members only.
The historical data trend for Rentokil Initial's Net 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.
For the Specialty Business Services subindustry, Rentokil Initial's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Rentokil Initial's Net Margin % distribution charts can be found below:
* The bar in red indicates where Rentokil Initial's Net 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.
Rentokil Initial (RTO) has a Net Margin % of 7.96% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Rentokil Initial and its competitors. This is 12% above median its historical median of 7.11. According to the industry distribution chart, Rentokil Initial ranks #375 out of 1074 companies in the Business Services industry, placing it in the top 34.9%.
Is Rentokil Initial's Net Margin % too high?
Rentokil Initial's current Net Margin % of 7.96% is 12% above median its 10-year median of 7.11. The Business Services industry median Net Margin % is 3.83. Rentokil Initial's value of 7.96% is 107.8% above this industry median. Based on the distribution chart, Rentokil Initial ranks #375 out of 1074 companies in the Business Services industry, which is above the industry midpoint. 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 Net Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Rentokil Initial ranks #375 out of 1074 companies for Net Margin %. This puts Rentokil Initial in the upper half of its industry. The industry median Net Margin % is 3.83. Rentokil Initial's value of 7.96% is 107.8% above this benchmark. While the company's 10-year median is 7.11 vs. the industry median of 3.83, Rentokil Initial has consistently been above 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 Net Margin % for a Business Services company?
The median Net Margin % among Business Services companies is 3.83, based on 1,074 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rentokil Initial's current Net Margin % of 7.96% is 107.8% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Rentokil Initial and its competitors. For the Business Services industry, the median Net Margin % is 3.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rentokil Initial's current Net Margin % is 7.96%, which is 12% above median its own 10-year median of 7.11. 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 Net Margin % is 7.96%, which is 12% above median its 10-year median of 7.11 and 107.8% above the Business Services industry median of 3.83. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Rentokil Initial (RTO), the current Net Margin % is 7.96% 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:
Net Margin %: 7.96% (12% above median its 10-year median of 7.11)
GF Value™: $29.87 vs. price of $29.00 (2.9% below fair value)
Industry Position: 107.8% above the Business Services median (#375 of 1074)
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
Get the complete analysis for RTO
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RTO has been successfully added to your 
