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Reckitt Benckiser Group plc (RBGPF)

NEUTRAL
Consumer DefensiveHousehold & Personal ProductsUnited Kingdom

Fundamental

52

Price

$5150.00

Market Cap

$32.48B

Part 1 · What the company is worth

Overview

Reckitt Benckiser makes and sells branded household health and hygiene products: disinfectants and cleaners such as Lysol and Dettol, over-the-counter medicines such as Nurofen and Strepsils, condoms under Durex, and infant formula through its Mead Johnson Nutrition unit. It manufactures its own products and sells them through supermarkets, pharmacies and e-commerce worldwide. On 31 December 2025 it completed the sale of its Essential Home division (Air Wick, Calgon, Cillit Bang and about 75 other brands) to Advent International, keeping a 30% stake in the buyer.

How it makes money

Revenue comes from selling packaged consumer goods through retailers, who buy at wholesale prices and mark them up for shelf sale. Margins depend on brand strength: a well-known name lets Reckitt charge more than an unbranded or store-label equivalent for a nearly identical product. Since January 2025 the group reports by geography — Core Emerging Markets, Core Europe, Core North America — plus Mead Johnson Nutrition as a separate line, after moving away from its former Health/Hygiene/Nutrition split.

Competitive moat

Brand · Narrow

Reckitt owns a portfolio of category-leading brands built over decades — Dettol in disinfection, Durex in condoms, Nurofen in pain relief — that let it command a premium over unbranded rivals. The advantage is narrow rather than wide: retailers' own store brands and generic pharmacy equivalents compete directly on price in most of these categories, and brand loyalty alone does not stop customers from trading down when budgets tighten.

What drives demand

Defensive

Most of the portfolio — disinfectants, pain relief, feminine care — covers routine household purchases that people keep buying even in a downturn, which cushions the group against recessions. The exception is infant nutrition, where demand tracks birth rates rather than the economy: Mead Johnson's growth in 2025 came mainly from price and mix rather than more babies being fed, since volumes actually declined.

The case for

Buyers argue that the 2025 turnaround is real — Core Reckitt like-for-like revenue grew 5.2%, led by double-digit growth in Emerging Markets — and that the Essential Home sale sharpens the portfolio around higher-margin health and hygiene brands while returning capital to shareholders through a special dividend.

The case against

Sellers point to a stalled Europe (like-for-like revenue down 4.5% in 2025) and soft North America, and worry that hundreds of pending U.S. lawsuits alleging Enfamil premature-infant formula causes necrotizing enterocolitis — with a jury already awarding $60 million in one case — could impose costs and reputational damage far beyond what today's price assumes.

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$13.35B

Trailing 12 months to the last reported quarter — estimated from per-share metrics

Net Income

$2.81B

Trailing 12 months to the last reported quarter — estimated from per-share metrics

Free Cash Flow

$3.09B

Total Equity

$5.67B

Total Liabilities

$10.25B

Current Ratio

0.59

Interest Coverage

-

Debt/EBITDA

2.86

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Overvalued

Fair Value

$2156.36

Current Price

$5150.00

Margin of Safety

-138.8%

Fair Value Range

$1401.63 - $2911.08

Estimation Methods

Analyst Target:$6223.26
DCF:$178.69
PE-based:$61.40
Graham Growth:$220.37
EPV:$42.58
Analyst Consensus:Strong Buy (22B / 7H / 0S)
Last Earnings Surprise:-1.27%

Valuation Metrics

P/E Ratio

1169.99

ROE

48.0%

P/B Ratio

580.17

P/FCF

1049.76

Gross Margin

59.6%

ROIC

12.3%

Profitability Radar

Value Creation (Economic Moat)

ROIC

12.3%

WACC

8.5%

ROIC − WACC

+3.8 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (10)

  • ROIC 12.3%
  • Gross Margin 59.6%
  • Debt/Equity ratio
  • Operating Margin 28.5%
  • Positive Free Cash Flow
  • Debt/EBITDA
  • ROE 42.9%
  • Analyst Consensus 76% Buy
  • PEG Ratio 0.47
  • Net Margin Trend 22.4% vs 10.1%

Failed (11)

  • Price CAGR -3.27%
  • P/FCF 1049.76
  • P/B Ratio 580.17
  • CapEx intensity
  • Current Ratio
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Revenue Growth 5Y 0.3%
  • Earnings Surprise avg 2.4%
  • Earnings Quality (OCF/NI) 0.66
  • Piotroski F-Score 1/9

Unavailable (6)

  • EPS data insufficient
  • Dividend Payout NaN%
  • Interest Coverage
  • Return on Tangible Assets
  • Low reliance on intangibles
  • Share Dilution (missing shares data)

Piotroski F-Score

1/9

Serious financial concerns

score
criteria

Earnings Quality

0.66

Moderate: some gap between profits and cash

Share Dilution

-

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Kristoffer Loe LichtCEO & Executive Director49
Ms. Shannon Sue EisenhardtCFO & Executive Director51
Mr. Nicholas James Ashworth C.F.A.Senior Vice President of Investor Relations-
Ms. Catheryn O'RourkeSenior VP, General Counsel & Company Secretary52
Ms. Sheila RedzepiChief Communications & Corporate Affairs Officer46
Mr. Ranjay RadhakrishnanChief Human Resources Officer54
Mr. Jerome LemairePresident North America51
Ms. Angela Naef Ph.D.Chief Research & Development Officer49
Ms. Susan SholtisPresident of Nutrition58
Dr. Alessio Fasano M.D.Chief Science & Medical Officer of Mead Johnson Nutrition (MJN) Business-

Audit Risk

4

Board Risk

2

Compensation Risk

3

Shareholder Rights Risk

1

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for RBGPF, sourced from Markets Gazette.

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