# Reckitt Benckiser Group (RKT.LSE)

Canonical: https://gigainvestors.com/s/RKT.LSE

Analysis as of: 2026-10-16T07:33:58.902Z. Financial observations: FY2002–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 5,486.00 per share; close as of 2026-10-15.

Estimated value: low GBX 2,943.65 per share, central GBX 3,313.24 per share, high GBX 3,805.24 per share. Buy at or below the central value GBX 3,313.24 per share. Valuation as of 2026-10-16T07:33:58.902Z; scenarios are not confidence intervals.

Expected annual return: 7.0% at the stated quote. About 7.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 2

- Operating margin variation: 0.48×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.24×

- FY2017: 0.24×

- FY2018: 0.24×

- FY2019: 0.26×

- FY2020: 0.15×

- FY2021: -0.06×

- FY2022: 0.22×

- FY2023: 0.17×

- FY2024: 0.17×

- FY2025: 0.24×

### moat: pass

- ROIC, median of available years: 18.6%

- ROIC, second-lowest year: 11.1%

- Typical minus recent gross margin: 0.6 pp

- Typical gross margin (annual median): 60.4%

- Recent gross margin (lower of latest and 3-year median): 59.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: 10.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 29.1%

- FY2017: 21.4%

- FY2018: 18.0%

- FY2019: 19.2%

- FY2020: 11.1%

- FY2021: -6.1%

- FY2022: 21.6%

- FY2023: 15.8%

- FY2024: 15.3%

- FY2025: 27.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 8.4B

- Net income, five-year total: GBP 8.5B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -2.3 pp

- Working capital / revenue, final three-year average: 2.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 3.71×

- FY2022: 1.04×

- FY2023: 0.97×

- FY2024: 0.96×

- FY2025: 0.97×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 21.4% vs 15.8%

- Per-share earnings: 2.56 to 2.29 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.0%

- Ordinary dilution, 5-year annual growth: -2.1%

- Market cap gain: GBP -10B

- Cumulative retained earnings: GBP -13B

- Diluted shares, 10-year annual growth: -1.0%

- Diluted shares, 5-year annual growth: -2.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -1.4%

- Per-share value change: GBP -0.28

- Per-share value, starting three-year median: GBP 2.56

- Per-share value, ending three-year median: GBP 2.29

- Buybacks concentrated in cheaper years (correlation): 0.66

- Average buyback yield: 1.3%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 20B

- Cumulative net income, 10 years: GBP 14B

- ROIC, first three-year median: 21.4%

- ROIC, last three-year median: 15.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 2.56

- FY2017: GBP 4.75

- FY2018: GBP 3.05

- FY2019: GBP -3.91

- FY2020: GBP 1.64

- FY2021: GBP -0.04

- FY2022: GBP 3.24

- FY2023: GBP 2.29

- FY2024: GBP 2.03

- FY2025: GBP 4.88

### accounting: pass

- Sloan accruals: 3.5%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.72×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.3%

- FY2017: 2.4%

- FY2018: -0.8%

- FY2019: -13.0%

- FY2020: -7.4%

- FY2021: -6.4%

- FY2022: -0.2%

- FY2023: -3.7%

- FY2024: -5.0%

- FY2025: 3.5%

## Holders

## Price story

Down 21% since Aug 2022 · "Reckitt raising prices to offset cost pressures amid Iran war" (uk.finance.yahoo.com, Jul 2026) · sales +0.3%

Story as of 2026-10-16T09:59:58.570Z; price observation 2026-10-15.

Price needs cash profits to grow 7.6% a year for ten years

- 2025-07-24: Reckitt Benckiser Shares Jump After Core Unit Beat, Guidance Upgrade ([finance.yahoo.com](https://finance.yahoo.com/m/936c960c-1b8e-3465-a4fa-392e901d7572/reckitt-benckiser-shares-jump.html))

- 2026-04-22: Reckitt cautions over impact of Iran war on costs and consumer demand ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/reckitt-cautions-over-impact-iran-070511030.html))

- 2026-07-29: Reckitt raising prices to offset cost pressures amid Iran war ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/reckitt-raising-prices-offset-cost-074810541.html))

### Sales · FY2024–2025

sales +0.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: GBP 9.5B 

- FY2017: GBP 11B 

- FY2018: GBP 13B 

- FY2019: GBP 13B 

- FY2020: GBP 14B 

- FY2021: GBP 13B 

- FY2022: GBP 14B 

- FY2023: GBP 15B 

- FY2024: GBP 14B 

- FY2025: GBP 14B 

### Gross margin · FY2025

gross margin 59.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 61.2% 

- FY2017: 61.0% 

- FY2018: 60.6% 

- FY2019: 60.5% 

- FY2020: 60.3% 

- FY2021: 58.1% 

- FY2022: 57.8% 

- FY2023: 60.0% 

- FY2024: 60.7% 

- FY2025: 59.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in household & personal products; annual sales are GBP 14.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2025: revenue 14205000000; grossProfit 8491000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RKT.LSE: Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products in the United Kingdom and internationally. The company offers germ protection under Dettol name; intimate wellness under Durex and KY brand names; over the counter under the Biofreeze, Gaviscon, Mucinex, Nurofen, Delsym, Cepacol, and Strepsils names. It also provides personal care products under Clearasil and Veet brand names; vitamins, minerals, and supplements under MegaRed, Airborne, Digestive-Advantage, Movefree, and neuriva names; stain removal under Vanish brand name; and disinfectant products under the Finish, Harpic, and Lysol brands. In addition, the company offers nutritious complementary foods and milk formulas for infant and young children under the Enfamil and Nutramigen brands. Reckitt Benckiser Group plc was founded in 1819 and is headquartered in Slough, the United Kingdom.

### Why customers stay

Margins ranged from 59.8% to 60.7% during 2023–25; it earns 18.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2023: grossProfit / revenue = 60%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2024: grossProfit / revenue = 60.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2025: grossProfit / revenue = 59.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); 10-year return on capital observations [[2016,0.2906423224025843],[2017,0.21436403508771928],[2018,0.18012535436256386],[2019,0.19168302945301544],[2020,0.11092675989570988],[2021,-0.06123204473151451],[2022,0.21588169550285527],[2023,0.15764332919359825],[2024,0.15316214598840966],[2025,0.27173960717414847]]; median 0.18590419190778965. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 0.2% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2016: growth capex 0; upkeep 176000000; owner earnings 1833000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2017: growth capex 18000000; upkeep 268000000; owner earnings 3376000000. Growth capex / owner earnings = 0.00533175355450237.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2018: growth capex 28000000; upkeep 409000000; owner earnings 2161000000. Growth capex / owner earnings = 0.012956964368347987.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2019: growth capex 0; upkeep 443000000; owner earnings 2288400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2020: growth capex 16000000; upkeep 470000000; owner earnings 1124400000. Growth capex / owner earnings = 0.014229811454998222.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2022: growth capex 0; upkeep 443000000; owner earnings 2413200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2023: growth capex 0; upkeep 449000000; owner earnings 1598600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2024: growth capex 0; upkeep 465000000; owner earnings 1362000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2025: growth capex 6082571.007498026; upkeep 529917428.992502; owner earnings 3096282571.007498. Growth capex / owner earnings = 0.0019644754210914354.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); Dividend observations: [[2016,1035000000],[2017,1134000000],[2018,1187000000],[2019,1227000000],[2020,1241000000],[2021,1246000000],[2022,1249000000],[2023,1339000000],[2024,1381000000],[2025,1403000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); FY2025: cash repurchases 882000000 GBP.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RKT.LSE SharesStats.PercentInsiders = 0.038 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.6% yearly over ten years; actual growth was 6.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.902Z); Ten-year compound average after fade. Initial solved rate 0.09677585478101991. Price 5486; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.4442475467254026 → FY2025 4.747166787288532. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-11: GBX 7,044.79 per share

- 2016-12: GBX 7,172.92 per share

- 2017-01: GBX 7,087.50 per share

- 2017-02: GBX 7,615.63 per share

- 2017-03: GBX 7,589.58 per share

- 2017-04: GBX 7,407.29 per share

- 2017-05: GBX 8,268.75 per share

- 2017-06: GBX 8,108.33 per share

- 2017-07: GBX 7,676.04 per share

- 2017-08: GBX 7,637.50 per share

- 2017-09: GBX 7,096.88 per share

- 2017-10: GBX 7,015.63 per share

- 2017-11: GBX 6,756.25 per share

- 2017-12: GBX 7,207.29 per share

- 2018-01: GBX 7,086.46 per share

- 2018-02: GBX 6,016.67 per share

- 2018-03: GBX 6,285.42 per share

- 2018-04: GBX 5,939.58 per share

- 2018-05: GBX 6,001.04 per share

- 2018-06: GBX 6,498.96 per share

- 2018-07: GBX 7,080.21 per share

- 2018-08: GBX 6,832.29 per share

- 2018-09: GBX 7,308.33 per share

- 2018-10: GBX 6,596.88 per share

- 2018-11: GBX 6,783.33 per share

- 2018-12: GBX 6,263.54 per share

- 2019-01: GBX 6,107.29 per share

- 2019-02: GBX 6,007.29 per share

- 2019-03: GBX 6,647.92 per share

- 2019-04: GBX 6,455.21 per share

- 2019-05: GBX 6,612.50 per share

- 2019-06: GBX 6,472.92 per share

- 2019-07: GBX 6,637.50 per share

- 2019-08: GBX 6,665.63 per share

- 2019-09: GBX 6,608.33 per share

- 2019-10: GBX 6,212.50 per share

- 2019-11: GBX 6,318.75 per share

- 2019-12: GBX 6,384.38 per share

- 2020-01: GBX 6,542.71 per share

- 2020-02: GBX 5,959.38 per share

- 2020-03: GBX 6,406.25 per share

- 2020-04: GBX 6,906.25 per share

- 2020-05: GBX 7,525.00 per share

- 2020-06: GBX 7,741.67 per share

- 2020-07: GBX 8,027.08 per share

- 2020-08: GBX 7,822.92 per share

- 2020-09: GBX 7,875.00 per share

- 2020-10: GBX 7,083.33 per share

- 2020-11: GBX 6,858.33 per share

- 2020-12: GBX 6,814.58 per share

- 2021-01: GBX 6,456.25 per share

- 2021-02: GBX 6,250.00 per share

- 2021-03: GBX 6,768.75 per share

- 2021-04: GBX 6,719.79 per share

- 2021-05: GBX 6,633.33 per share

- 2021-06: GBX 6,663.54 per share

- 2021-07: GBX 5,753.13 per share

- 2021-08: GBX 5,769.79 per share

- 2021-09: GBX 6,072.92 per share

- 2021-10: GBX 6,171.88 per share

- 2021-11: GBX 6,364.58 per share

- 2021-12: GBX 6,606.25 per share

- 2022-01: GBX 6,261.46 per share

- 2022-02: GBX 6,584.38 per share

- 2022-03: GBX 6,075.00 per share

- 2022-04: GBX 6,500.00 per share

- 2022-05: GBX 6,393.75 per share

- 2022-06: GBX 6,427.08 per share

- 2022-07: GBX 6,922.92 per share

- 2022-08: GBX 6,925.00 per share

- 2022-09: GBX 6,225.00 per share

- 2022-10: GBX 6,020.83 per share

- 2022-11: GBX 6,195.83 per share

- 2022-12: GBX 5,993.75 per share

- 2023-01: GBX 6,010.42 per share

- 2023-02: GBX 6,002.08 per share

- 2023-03: GBX 6,414.58 per share

- 2023-04: GBX 6,697.92 per share

- 2023-05: GBX 6,506.25 per share

- 2023-06: GBX 6,158.33 per share

- 2023-07: GBX 6,081.25 per share

- 2023-08: GBX 5,939.58 per share

- 2023-09: GBX 6,035.42 per share

- 2023-10: GBX 5,731.25 per share

- 2023-11: GBX 5,622.92 per share

- 2023-12: GBX 5,645.83 per share

- 2024-01: GBX 5,945.83 per share

- 2024-02: GBX 5,206.25 per share

- 2024-03: GBX 4,700.00 per share

- 2024-04: GBX 4,654.17 per share

- 2024-05: GBX 4,637.50 per share

- 2024-06: GBX 4,460.42 per share

- 2024-07: GBX 4,352.08 per share

- 2024-08: GBX 4,547.92 per share

- 2024-09: GBX 4,767.71 per share

- 2024-10: GBX 4,879.17 per share

- 2024-11: GBX 5,062.50 per share

- 2024-12: GBX 5,034.38 per share

- 2025-01: GBX 5,552.08 per share

- 2025-02: GBX 5,458.33 per share

- 2025-03: GBX 5,447.92 per share

- 2025-04: GBX 5,039.58 per share

- 2025-05: GBX 5,241.67 per share

- 2025-06: GBX 5,161.46 per share

- 2025-07: GBX 5,908.33 per share

- 2025-08: GBX 5,760.42 per share

- 2025-09: GBX 5,956.25 per share

- 2025-10: GBX 6,058.33 per share

- 2025-11: GBX 6,095.83 per share

- 2025-12: GBX 6,252.08 per share

- 2026-01: GBX 6,345.83 per share

- 2026-02: GBX 6,512.00 per share

- 2026-03: GBX 5,088.00 per share

- 2026-04: GBX 4,678.00 per share

- 2026-05: GBX 4,591.00 per share

- 2026-06: GBX 4,911.00 per share

- 2026-07: GBX 5,240.00 per share

- 2026-08: GBX 5,132.00 per share

- 2026-09: GBX 4,992.00 per share

- 2026-10: GBX 5,258.00 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 2,955.44 per share, central GBX 3,355.06 per share, high GBX 3,887.41 per share

- FY2017: low GBX 4,608.18 per share, central GBX 6,349.67 per share, high GBX 7,405.50 per share

- FY2018: low GBX 4,681.61 per share, central GBX 6,112.73 per share, high GBX 7,126.41 per share

- FY2019: low GBX 4,599.42 per share, central GBX 5,775.66 per share, high GBX 6,719.61 per share

- FY2020: low GBX 3,941.40 per share, central GBX 4,458.89 per share, high GBX 5,147.78 per share

- FY2021: low GBX 3,612.90 per share, central GBX 4,091.81 per share, high GBX 4,729.35 per share

- FY2022: low GBX 3,790.78 per share, central GBX 4,296.79 per share, high GBX 4,970.41 per share

- FY2023: low GBX 2,583.02 per share, central GBX 2,918.16 per share, high GBX 3,364.31 per share

- FY2024: low GBX 2,189.35 per share, central GBX 2,481.85 per share, high GBX 2,871.23 per share

- FY2025: low GBX 2,860.94 per share, central GBX 3,220.14 per share, high GBX 3,698.31 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:46.071Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.