Reckitt Benckiser Group plc (RKT.L) stock analysis

In our weekly check, Reckitt Benckiser Group plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.

About Reckitt Benckiser Group plc

Reckitt Benckiser Group plc is a Consumer Defensive company (Household & Personal Products) based in the United Kingdom, listed on LSE as RKT.L.

What our checks show for RKT.L

Red flags

• Analysts expect revenue to shrink about 0.6% a year.
• Analysts expect the net margin to shrink by 4.3 points from today's 22.4%.
• Revenue fell 0.6% a year over the last 3 years.

Warning signs

• Net debt is 1.7x a year of EBITDA (debt/equity 1.79). That limits room in a downturn and raises refinancing risk.
• Operating cash flow is only 0.72x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 7.5% a year.
• The stock has fallen as much as 50% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Operating profit covers interest 10.6 times over.
• The net margin rose by 22.6 points over 5 years, to 22.4%.
• The gross margin is 59.8% and has risen by 1.7 points: pricing power is holding.
• Earnings per share grew 14.3% a year over the last 3 years.
• Net profit grew 10.9% a year over the last 3 years.
• The company keeps 22.4% of its revenue as net profit.

Similar companies

KMB · KVUE · HEN3.DE · EL · CHD · BEI.DE

Questions

What grade does Reckitt Benckiser Group plc (RKT.L) have?

In our weekly check, Reckitt Benckiser Group plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RKT.L stock?

This week's biggest flags for Reckitt Benckiser Group plc: Weak revenue forecast, Margins expected to shrink, Weak revenue growth. In total 8 of 25 checks show a warning or a red flag.

What does Reckitt Benckiser Group plc do?

Reckitt Benckiser Group plc is a Consumer Defensive company (Household & Personal Products) based in the United Kingdom, listed on LSE as RKT.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis