| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 69.60 | -1 |
| Intrinsic value (DCF) | 29.73 | -58 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 12.20 | -83 |
Reckitt Benckiser Group plc (3RB.DE) is a global leader in health, hygiene, and nutrition products, headquartered in Slough, United Kingdom. With a rich history dating back to 1819, the company operates a diversified portfolio of well-known brands such as Dettol, Durex, Mucinex, Nurofen, and Enfamil, serving consumers in over 60 countries. Reckitt Benckiser's product range spans disinfectants, personal care, infant nutrition, over-the-counter medications, and household cleaning solutions, positioning it as a key player in the Consumer Defensive sector. The company's strong brand equity, extensive distribution network, and focus on innovation in health and hygiene make it a resilient performer in both developed and emerging markets. With a market capitalization of approximately €39.87 billion, Reckitt Benckiser continues to leverage its R&D capabilities and strategic acquisitions to maintain its competitive edge in the Household & Personal Products industry.
Reckitt Benckiser presents a stable investment opportunity due to its strong brand portfolio, global presence, and defensive sector positioning. The company's diversified revenue streams across health, hygiene, and nutrition provide resilience against economic downturns. However, investors should be mindful of rising input costs, competitive pressures, and regulatory risks in key markets like infant nutrition. With a beta of 0.117, the stock exhibits low volatility relative to the market, appealing to conservative investors. The dividend yield, supported by a payout of €2.36 per share, adds to its attractiveness. While net margins remain healthy at ~10%, the company's high debt-to-equity ratio (€8.66 billion in total debt) warrants monitoring, particularly in a rising interest rate environment.
Reckitt Benckiser's competitive advantage stems from its portfolio of trusted household brands, extensive distribution network, and strong R&D focus in hygiene and health solutions. The company holds leadership positions in multiple niche categories such as disinfectants (Dettol), sexual wellness (Durex), and infant formula (Enfamil), which provide pricing power and customer loyalty. Its geographic diversification, with significant exposure to both developed markets (UK, US) and high-growth emerging markets (India, China), mitigates regional economic risks. However, the company faces intense competition from larger conglomerates like Procter & Gamble and Unilever in household products, as well as specialized players in nutrition and OTC pharmaceuticals. Reckitt's recent strategic shift toward higher-margin health and hygiene products (divesting non-core assets like IFCN) improves its competitive positioning but increases reliance on innovation-driven categories. Supply chain efficiencies and digital commerce capabilities are areas where competitors may have an edge, requiring continued investment.