Rentokil: A Bug Business With Long-Term Bite

Rentokil (RTO) offers a more attractive valuation and diversified growth profile than peer Rollins, trading at a significant discount despite similar growth drivers. RTO reported FY'25 revenues of $6.91B (+3.8% YoY), with organic growth, margin expansion, and strong free cash flow supporting deleveraging and investment-grade credit ratings. Industry tailwinds, operational efficiencies, and a robust M&A pipeline underpin expectations for mid-to-high single-digit EPS growth and margin improvement toward 20%+ by 2027.