Reckitt Benckiser Group PLC Fundamental Analysis (XETRA: 3RB.DE)
Reckitt Benckiser Group PLC Fundamental Analysis (XETRA: 3RB.DE)
Reckitt Benckiser Group PLC (XETRA: 3RB.DE) shows strong financial fundamentals with a PE ratio of 11.57, profit margin of 21.12%, and ROE of 42.93%. The company generates $13.6B in annual revenue with weak year-over-year growth of 0.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3RB.DE's fundamental strength across five key dimensions:
Efficiency Score
Excellent3RB.DE demonstrates superior asset utilization.
Valuation Score
Excellent3RB.DE trades at attractive valuation levels.
Growth Score
Weak3RB.DE faces weak or negative growth trends.
Financial Health Score
Weak3RB.DE carries high financial risk with limited liquidity.
Profitability Score
Excellent3RB.DE achieves industry-leading margins.
Key Financial Metrics
Is 3RB.DE Expensive or Cheap?
P/E Ratio
3RB.DE trades at 11.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 3RB.DE's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Reckitt Benckiser Group PLC at 5.90 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.24 times EBITDA. This is generally considered low.
How Well Does 3RB.DE Make Money?
Net Profit Margin
For every $100 in sales, Reckitt Benckiser Group PLC keeps $21.12 as profit after all expenses.
Operating Margin
Core operations generate 28.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $42.93 in profit for every $100 of shareholder equity.
ROA
Reckitt Benckiser Group PLC generates $11.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Reckitt Benckiser Group PLC produces operating cash flow of $2.09B, showing steady but balanced cash generation.
Free Cash Flow
Reckitt Benckiser Group PLC generates strong free cash flow of $1.54B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.39 in free cash annually.
FCF Yield
3RB.DE converts 4.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.43
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How 3RB.DE Stacks Against Its Sector Peers
| Metric | 3RB.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.57 | 20.66 | Better (Cheaper) |
| ROE | 42.93% | 675.00% | Weak |
| Net Margin | 21.12% | -2311.00% (disorted) | Strong |
| Debt/Equity | 1.79 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.59 | 2.27 | Weak Liquidity |
| ROA | 11.83% | 316.00% | Weak |
3RB.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Reckitt Benckiser Group PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.65%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
192.18%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-28.83%
Industry Style: Defensive, Dividend, Low Volatility
Declining