One-glance verdict
Undervalued
$16.91 our estimate vs market $14.92
Wall Street consensus: $16.41 (-3.0% lower than our fair-value estimate)
12% below our estimate, below the bear case
Fundamentals snapshot
Reckitt Benckiser Group plc
RBGLY · OQX · Consumer Defensive · Household & Personal Products
Current price
$14.92
52-week range
$12.02 - $17.80
Market cap
$47.27B
Balance sheet
Stretched
8.10x Adequate
Net debt $12.50B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.3% last year.
- Reward Returns 48.0% on equity, ahead of 33% of its peers.
- Risk Forward P/E (15.8x) is higher than trailing (12.5x) - earnings are expected to drop.
- Risk Operating margin compressed from 23.5% to 18.2% over 3 years.
What this company does
Reckitt Benckiser Group plc
Reckitt Benckiser Group plc (RBGLY) makes and sells well-known health, hygiene, and nutrition items like Dettol, Durex, and Enfamil. The money they make primarily comes from selling these everyday products across the globe. This matters because consistent sales of these essential goods can lead to stable profits for the company, even when the economy is uncertain.
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How the company got here
Reckitt Benckiser Group plc, now known as Reckitt, has a history stretching back to the 19th century, with roots in companies like Reckitt & Sons (founded in 1840) and Benckiser NV (founded in 1823). The modern company was formed in 1999 through the merger of Reckitt & Colman and Benckiser NV, creating a powerhouse in health and hygiene products. Over the years, Reckitt has strategically acquired brands like Lysol, Dettol, and Mucinex, and divested non-core businesses to sharpen its focus. This evolution reflects a long-term strategy of consolidating strong brands and streamlining operations to better serve consumer needs.
What it actually does
Reckitt is a global company that makes and sells a wide variety of products designed to improve health, hygiene, and nutrition in households worldwide. You'll find their brands in many everyday situations, from cleaning your home and laundry to providing relief for common ailments and supporting infant development. The company's core mission is to provide trusted, effective products that consumers rely on for their well-being and the cleanliness of their living spaces. They operate on a business model where consumers repeatedly purchase these branded goods, making them a staple in many homes.
Health
The Health segment is a significant part of Reckitt's business, offering products that help people manage their well-being and treat common health issues. This includes over-the-counter (OTC) medicines for pain relief, cold and flu symptoms, and digestive problems, such as Mucinex, Nurofen, and Gaviscon. It also encompasses germ protection products like Dettol, intimate wellness brands such as Durex, and vitamins and supplements (VMS) like MegaRed. Consumers purchase these products to feel better, prevent illness, and maintain personal health, making this a crucial area for the company.
Hygiene
Reckitt's Hygiene segment focuses on keeping homes clean and germ-free, offering a range of products for various household needs. This includes well-known brands like Lysol and Dettol for disinfection and surface cleaning, Harpic for toilet care, and Finish for automatic dishwashing. They also provide fabric care solutions under the Vanish brand. These products are essential for maintaining sanitary living environments, and consumers buy them regularly to ensure the cleanliness and safety of their homes.
Nutrition
The Nutrition segment addresses the dietary needs of infants, children, and individuals requiring specialized nutritional support. This part of the business is anchored by brands like Enfamil and Nutramigen, which provide infant formula and specialized nutritional products. These offerings are critical for infant development and for managing specific dietary requirements, making them essential purchases for parents and caregivers. This segment highlights Reckitt's commitment to health across different life stages.
What management is betting on now
Reckitt's current strategy centers on focusing its resources on a select group of 'Powerbrands' – its most successful and high-growth brands across its Health, Hygiene, and Nutrition categories. Management is simplifying the organization to become faster and more efficient, aiming to grow faster than the overall market categories it competes in. This involves disciplined execution, reinvesting capital into these core brands through innovation and marketing, and returning surplus cash to shareholders. The goal is to drive sustainable long-term value creation by concentrating on areas where the company has a strong competitive advantage and brand loyalty.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $16.91 vs current price $14.92
Wall Street consensus is the average analyst price target: $16.41 (-3.0% lower than our fair-value estimate).
Our most-likely fair value is $16.91 a share — about 13.4% above today's price of $14.92, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $12.5B. Interest coverage 8.1x.
Net debt
$12.50B
Interest coverage
8.10x
Reckitt Benckiser Group plc's profit covers its interest bill about 8.1 times over.
Stretched
Worse cushion
Baseline
Better cushion
RBGLY
BASELINE
Reckitt Benckiser Group plc
Total debt $13.67B Interest coverage 8.10x This is the baseline the peer rows are being compared against.
Total debt $35.02B Interest coverage 22.52x +178% vs RBGLY Carries about 2.8x more debt cushion than RBGLY.
Total debt $7.86B Interest coverage 15.85x +96% vs RBGLY Carries about 2.0x more debt cushion than RBGLY.
Total debt $6.54B Interest coverage 9.18x +13% vs RBGLY Has roughly the same debt cushion as RBGLY.
Total debt $5.60B Interest coverage 6.82x -16% vs RBGLY Carries about 1.2x less debt cushion than RBGLY.
Total debt $2.43B Interest coverage 11.32x +40% vs RBGLY Carries about 1.4x more debt cushion than RBGLY.
What you should know
The case for and against RBGLY
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.3% last year.
-
Returns 48.0% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (15.8x) is higher than trailing (12.5x) - earnings are expected to drop.
-
Operating margin compressed from 23.5% to 18.2% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
12.54x
Forward P/E
15.81x
P/B
6.27x
P/S
3.47x
EV/EBITDA
15.82x
PEG ratio
2.38x
Profitability
How much profit each dollar creates
Gross margin
59.6%
Operating margin
18.2%
Net margin
21.1%
ROE
48.0%
ROA
7.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.80x
Current ratio
0.59x
Quick ratio
0.38x
Total debt
$13.67B
Total cash
$1.17B
Growth
How the business has been compounding
Revenue TTM
$18.17B
Revenue 5Y CAGR
-0.6%
EPS TTM
1.19
EPS 5Y CAGR
12.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.06B
Free CF TTM
$2.24B
FCF margin
12.3%
Dividend
Shareholder payout
Yield
3.9%
Payout ratio
48.7%
Last ex-div date
2026-08-10