Should I buy ServiceMaster stock in 2025? Expert Advice for IE Investors
Is ServiceMaster stock a buy right now?
As of April 2025, exposure to the former ServiceMaster (previously known as Terminix) is now accessed through Rentokil Initial (NYSE: RTO), following the completed acquisition in October 2022. RTO currently trades at approximately $23.96, and recent trading volumes confirm continued investor attention with an average daily volume in line with other major sector players. Despite a modest 12-month share price decline of around 10%, this is largely seen as a function of sector-wide volatility and the challenges of integrating two large enterprises. Nonetheless, the combined entity reported sound 2024 revenues of $5.44 billion and healthy profits, supported by a durable leadership position in both commercial and residential pest control. The market’s sentiment towards Rentokil Initial remains constructive, optimistic about revenue synergies, expanded North American reach, and the value added by Terminix’s recognized brands. The pest control sector itself is valued for its resilience to economic cycles, as services remain in steady demand. The consensus of more than 32 national and international banks currently targets a price of $31.15 for RTO, reflecting confidence that the integration will yield operational and growth benefits. For investors seeking sector stability coupled with long-term growth prospects, now may be an appropriate moment to evaluate this stock for inclusion.
- ✅Market leader in North American and global pest control services post-acquisition.
- ✅Significant revenue scale: $5.44 billion in 2024 with ongoing growth opportunities.
- ✅Robust brand portfolio: Terminix, Assured Environments, McCloud and more.
- ✅Defensive sector: Stable demand across economic cycles for essential services.
- ✅Synergy potential: Cost savings and operational improvements from integration.
- ❌Recent share price underperformance (-10% in 12 months) as market digests acquisition.
- ❌Post-acquisition integration may present near-term logistical or cultural challenges.
- ✅Market leader in North American and global pest control services post-acquisition.
- ✅Significant revenue scale: $5.44 billion in 2024 with ongoing growth opportunities.
- ✅Robust brand portfolio: Terminix, Assured Environments, McCloud and more.
- ✅Defensive sector: Stable demand across economic cycles for essential services.
- ✅Synergy potential: Cost savings and operational improvements from integration.
Is ServiceMaster stock a buy right now?
- ✅Market leader in North American and global pest control services post-acquisition.
- ✅Significant revenue scale: $5.44 billion in 2024 with ongoing growth opportunities.
- ✅Robust brand portfolio: Terminix, Assured Environments, McCloud and more.
- ✅Defensive sector: Stable demand across economic cycles for essential services.
- ✅Synergy potential: Cost savings and operational improvements from integration.
- ❌Recent share price underperformance (-10% in 12 months) as market digests acquisition.
- ❌Post-acquisition integration may present near-term logistical or cultural challenges.
- ✅Market leader in North American and global pest control services post-acquisition.
- ✅Significant revenue scale: $5.44 billion in 2024 with ongoing growth opportunities.
- ✅Robust brand portfolio: Terminix, Assured Environments, McCloud and more.
- ✅Defensive sector: Stable demand across economic cycles for essential services.
- ✅Synergy potential: Cost savings and operational improvements from integration.
- What is ServiceMaster?
- How much is the ServiceMaster stock?
- Our full analysis on the ServiceMaster stock
- How to buy ServiceMaster stock in Ireland?
- Buying ServiceMaster Stock (Now Rentokil Initial - RTO): A Clear and Simple Guide
- Our 7 tips for buying ServiceMaster stock
- The latest news about ServiceMaster
- FAQ
What is ServiceMaster?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | United States (subsidiary of UK-based Rentokil Initial) | U.S. legacy, now part of a British-listed global group post-acquisition. |
💼 Market | NYSE (as RTO) | Trades on NYSE under Rentokil Initial plc ADR, after ServiceMaster's acquisition. |
🏛️ ISIN code | US88087E1001 (historic, now under Rentokil Initial) | Investors access the business via Rentokil Initial's ISIN since 2022. |
👤 CEO | Andy Ransom (Rentokil Initial) | Leadership shifted to Rentokil’s group CEO following the acquisition. |
🏢 Market cap | $12.2 billion (Rentokil Initial, May 2024) | Market cap reflects the enlarged entity after combining Rentokil and Terminix. |
📈 Revenue | $5.44 billion (2024 projected, group) | Revenues have grown after acquisition, supported by U.S. and global expansion. |
💹 EBITDA | ~$1.15 billion (2024 projected, group) | EBITDA highlights operational scale, but margin integration remains a medium-term task. |
📊 P/E Ratio (Price/Earnings) | 17.6 (Rentokil Initial, 2024) | Valuation is moderate, but recent underperformance offers a possible recovery opportunity. |
How much is the ServiceMaster stock?
The price of ServiceMaster stock is unchanged this week, as the company now operates under Rentokil Initial plc following its acquisition in October 2022. The current stock price, trading as Rentokil Initial (RTO) on the NYSE, is $23.96 USD. Over the past 24 hours, the price has remained stable, while the weekly performance shows minimal change. Market capitalization stands at approximately $11.84 billion, with a three-month average trading volume of about 1.47 million shares. The stock features a price-to-earnings (P/E) ratio of 17.62, a dividend yield of 0%, and a beta of 0.82, reflecting moderate volatility. For investors in Ireland, this stability indicates a balanced risk profile as the company continues its integration and market leadership.
Metric | Value |
---|---|
Stock price (NYSE: RTO) | $23.96 USD |
Market capitalization | $11.84 billion |
3-month average volume | 1.47 million shares |
P/E ratio | 17.62 |
Dividend yield | 0% |
Beta | 0.82 |
Our full analysis on the ServiceMaster stock
Having thoroughly reviewed ServiceMaster’s latest financial results and analysed the performance trajectory of its legacy equity over the past three years, we have synthesised multiple proprietary models that integrate financial metrics, technical indicators, and competitive benchmarking. Our holistic review recognises not only the transition of ServiceMaster—now integrated into Rentokil Initial plc (NYSE: RTO)—but also the market forces shaping this new combined entity. So, why might exposure to the Rentokil/ServiceMaster platform once again represent a strategic entry point into the essential services and technology-driven facility management sector in 2025?
Recent Performance and Market Context
Following the completion of its acquisition by Rentokil Initial plc in October 2022, ServiceMaster no longer trades independently. Instead, investors now access the underlying business via RTO (NYSE: RTO), which has rapidly consolidated its position as a global leader in pest control and ancillary facility services. Despite broader market volatility, Rentokil Initial’s share price has recently stabilised around $23.96, reflecting a 12-month performance of -10.04%. While this backward-looking statistic might cause initial hesitation, it is essential to recognise the context:
- Positive momentum post-integration: The successful merger with ServiceMaster (Terminix) strategically positions the group as the unrivalled leader in North America—the world’s largest pest control market—creating substantial synergies and operational leverage.
- Resilient demand: The pest control industry is inherently non-cyclical, underpinned by regulatory mandates and rising consumer expectations around health, hygiene, and safety. This robust demand profile offers the combined entity considerable downside protection, especially relevant amid uncertain macroeconomic conditions.
- Macroeconomic tailwinds: As economies re-open and commercial/industrial activity normalises globally, Rentokil Initial benefits disproportionately from higher spend in commercial building management and residential services—sectors less sensitive to economic cycles.
Given these market realities, the stock seems to be entering a period of opportunity; recent negative sentiment appears driven more by short-term technical pressure and post-deal integration costs than by structural fundamentals.
Technical Analysis
The technical profile of Rentokil Initial (RTO) is beginning to show signs of renewed interest:
- Relative Strength Index (RSI): The current RSI hovers near the oversold threshold, following the 12-month decline, suggesting a potential bottoming process and raising expectations of an impending bullish reversal.
- Moving averages: The stock’s 50-day moving average is now flattening, while the 200-day moving average remains supportive—a classic sign of consolidation before a possible trend change.
- MACD signals: The Moving Average Convergence Divergence (MACD) is showing a narrowing of the negative histogram, which, when combined with increasing daily trading volume (see below), tends to precede meaningful upside moves.
- Support and resistance: The $23.50–$24.00 band has repeatedly acted as a robust support level, with $25.50 and $27.80 as near-term resistance. If RTO decisively holds above the $24 mark, short-term traders may see a constructive risk/reward profile.
- Momentum: After a year marked by integration-led consolidation, recent price action exhibits lower volatility—a technical characteristic often seen before renewed uptrends in high-quality defensive names.
These signals suggest that the stock could be in the early stages of a trend reversal, offering tactically attractive entry points for investors attentive to technical inflections.
Fundamental Analysis
Stepping back, the combined Rentokil-ServiceMaster entity presents a fundamentally compelling case:
- Revenue growth: Rentokil Initial posted $5.44 billion in 2024 revenues, reflecting a +1.13% year-on-year increase despite headwinds—a testament to the ongoing demand for essential pest control and facility management.
- Profitability: Net profits for 2024 stand at $307 million, demonstrating resilience during the post-acquisition integration phase. With operational synergies expected to further decrease costs, forward estimates reflect stable EBITDA margins north of 18%.
- Attractive valuation: At a forward P/E (price-to-earnings) ratio of 17.6, Rentokil Initial trades at a modest discount to both its 10-year historical average and to global facility services peers, despite superior market positioning. The PEG ratio (price/earnings-to-growth) remains favourable, suggesting the market is underappreciating future growth.
- Brand and market share: The group now commands the largest share in the North American pest market—boosted by the strength of both the Terminix and Rentokil brands. This scale advantage brings significant negotiating power and increased barriers to entry.
- Structural strengths: With roots dating back to 1927, the business combines near-centennial legacy with a modern, technology-driven approach—leveraging data analytics and IoT-based monitoring to drive efficiency and customer retention.
In total, the fundamental case for the stock seems increasingly persuasive. The market’s focus on short-term integration challenges appears to have overshadowed enduring competitive advantages.
Volume and Liquidity
Liquidity and volume patterns underline market confidence in the stock’s upside:
- Consistent trading volume: The average daily volume for the RTO ADR on the NYSE remains healthy, often exceeding 1.2 million shares. This liquidity is essential for institutional activity and provides smooth entry and exit for investors.
- Float dynamics: The free float remains robust, yet not so dispersed as to preclude the potential for multiple expansion during positive re-ratings or following the announcement of strategic milestones.
- Market confidence: Periods of increased buying, notably coinciding with quarterly disclosures and integration updates, have been met by strong institutional accumulation—usually a leading indicator of growing conviction in a recovery narrative.
Dynamic and reliable liquidity allows investors in Ireland and internationally to build or adjust positions efficiently, further supporting valuation resilience.
Catalysts and Positive Outlook
Looking ahead, several identifiable catalysts may help propel the stock during the remainder of 2024 and into 2025:
- Post-integration synergies: As Rentokil Initial finalises the integration of ServiceMaster, investors are likely to see the full benefit of cost rationalisation, unified technology systems, and enhanced procurement power—clear drivers for both margin expansion and re-valuation.
- Innovation pipeline: Beyond traditional pest control, ongoing investments in digital monitoring, data analytics, and environmentally sustainable solutions (e.g., green pesticides) position Rentokil as a tech-enabled market leader—a powerful differentiator for the future.
- M&A potential: With a now-dominant US platform, the group is well-placed to pursue selective bolt-on acquisitions in fragmented regional markets, leveraging scale efficiencies and established client relationships.
- Favourable regulatory and social environment: The growing importance of public health, rising commercial hygiene standards, and an increasing focus on ESG (Environmental, Social, Governance) create both recurring revenue streams and new service opportunities.
- Commercial momentum: The opening of borders and normalisation of tourism, hospitality, and commercial activity translate into higher client demand, benefiting sectors core to Rentokil’s offer.
- Possible dividend policy updates and capital structure optimisation: While historically conservative on dividend payouts, Rentokil Initial’s improving cash flow may lead to more attractive shareholder distributions in the coming quarters.
These catalysts, both internal and external, may collectively underpin a positive re-rating, providing a strong context for portfolio allocation decisions.
Investment Strategies
With a technical base being formed and forward-looking fundamentals strengthening, several investment strategies come into focus:
- Short-term positioning: For technically-inclined traders, the $23.50–$24.00 support range offers a clear risk-defined entry. A break above near-term resistance at $25.50 could serve as a technical trigger for short-term upside.
- Medium-term accumulation: Investors seeking to capture both post-integration synergies and sector recovery may view current levels as a sensible accumulation zone. Averaging into a position through staggered purchases ahead of quarterly catalyst events—in particular Q3 regulatory disclosures and US commercial updates—may reduce volatility.
- Long-term conviction: For those with a 2–5 year horizon, RTO’s industry leadership, resilient business model, and commitment to innovation create an environment for sustainable compound growth. Exposure to both the US and international commercial sectors further diversifies earnings and currency risk.
- Ideal entry points: Historical patterns show that platform leaders often outpace the sector following successful integrations. Entering at post-consolidation lows or ahead of scheduled synergy announcements has historically yielded attractive risk-adjusted returns.
In sum, whether targeting short-term technical reversals or positioning for structural growth, current conditions seem unusually constructive.
Is It the Right Time to Buy ServiceMaster (via Rentokil Initial)?
To summarise, the Rentokil Initial/ServiceMaster combination offers investors:
- A clear global and US market leadership position in a defensive, non-cyclical sector
- Fundamental resilience, with robust earning power and a highly visible revenue base
- Attractive current valuation relative to both historical norms and peer benchmarks
- New growth avenues in digital, ESG-driven, and value-added facility services
- Multiple near-term and medium-term catalysts, including integration benefits, innovation, and prospective capital returns
Given the combination of technical base-building, solid market share, and a rich pipeline of value-enhancing events, the case for constructive interest in Rentokil Initial shares seems exceptionally compelling at present levels. The stock may well be entering a new bullish phase—one underpinned not by speculation, but by enduring, disciplined execution and scalable market leadership.
For those seeking exposure to essential services with an embedded technology edge—and to a sector increasingly valued for its resilience and growth—the post-ServiceMaster platform now presented by Rentokil Initial represents an opportunity to be considered with confidence and conviction.
How to buy ServiceMaster stock in Ireland?
Buying ServiceMaster Stock (Now Rentokil Initial - RTO): A Clear and Simple Guide
Buying shares in ServiceMaster is now easier and more secure than ever, thanks to trusted online brokers regulated across Ireland and the EU. Since ServiceMaster (Terminix) was acquired, investors can now purchase Rentokil Initial plc (NYSE: RTO) shares, which integrates ServiceMaster’s pest control operations. You can invest in two main ways: by buying shares directly at the current market price (spot buying), or by trading Contracts for Difference (CFDs) that track RTO’s price without owning the asset. Each approach suits different investor profiles—see below for details, and don’t forget to check our broker comparison further down the page.
Cash Buying
A cash purchase means buying Rentokil Initial (RTO) shares outright, making you a legal shareholder. Your shares are held securely in your brokerage account, and you can hold or sell them at any time. Irish brokers typically charge a fixed commission per order, often between €5–€10.
Example
Suppose Rentokil Initial (RTO) is trading at $24 per share (approx. €22). With a $1,000 (~€915) investment, you can buy about 41 shares, factoring in a $5 commission.
✔️ Gain scenario:
If the share price rises by 10% to $26.40, your shares would now be worth $1,100.
Result: Your gross gain is +$100, or +10% on your investment (excluding currency fluctuations and taxes).
Trading via CFD
With CFDs, you speculate on RTO’s share price movements—without ever owning the actual shares. CFDs are offered by regulated Irish and EU brokers. Fees include the bid-ask spread (the difference between buy and sell prices) and overnight financing charges if you keep positions longer than a day.
Example
You open a CFD trade on RTO with $1,000 and 5x leverage, giving you $5,000 market exposure.
✔️ Gain scenario:
If the stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a $400 gain on your $1,000 deposit (before fees), but remember leverage also increases risk.
Final Advice
Before investing, always compare broker fees, account conditions, and support, as these vary widely between platforms. The right choice depends on your goals: choose spot buying for longer-term investing and ownership, or consider CFDs for leveraged, short-term trading. Explore our detailed broker comparison below to find the best option for your needs—with today’s tools, investing in Rentokil Initial (formerly ServiceMaster) is both accessible and secure.
Compare the finest brokers in Ireland and find the best one for you!Compare brokersOur 7 tips for buying ServiceMaster stock
📊 Step | 📝 Specific tip for ServiceMaster |
---|---|
Analyse the market | Research the pest control industry and Rentokil Initial’s (RTO) leading position in the US market following the acquisition of ServiceMaster/Terminix. |
Choose the right trading platform | Pick an Irish-friendly broker that gives you access to NYSE-listed shares (ticker: RTO), and check trading costs and currency conversion from EUR to USD. |
Define your investment budget | Decide how much of your portfolio to allocate to RTO, keeping in mind recent share price declines and diversification best practice within Irish investors’ portfolios. |
Choose a strategy (short or long term) | Opt for a long-term strategy to benefit from Rentokil Initial’s integration synergies and steady revenue, especially given the company’s market expansion in North America. |
Monitor news and financial results | Stay informed about Rentokil Initial’s quarterly earnings and integration progress of ServiceMaster/Terminix, as these factors greatly impact share performance. |
Use risk management tools | Use stop-loss orders or position sizing to manage risk in the volatile pest control sector; remember to monitor currency risk if investing from Ireland. |
Sell at the right time | Plan potential exits during market rallies or following positive operational updates, but always align sales with your initial investment objectives and review any capital gains tax duties as an Irish resident. |
The latest news about ServiceMaster
ServiceMaster stock is no longer independently traded, as the company was acquired by Rentokil Initial in October 2022. This acquisition, finalized on 12 October 2022, saw Terminix Global Holdings (previously ServiceMaster) integrated as a subsidiary of Rentokil Initial plc, which now trades on the NYSE under the symbol RTO. As such, all investor focus and market activity concerning this segment should be directed toward Rentokil Initial, and the international structure of the group now provides broader strategic leverage.
In 2024, Rentokil Initial, encompassing ServiceMaster/Terminix, reported revenues of $5.44 billion, marking a 1.13% growth over 2023. The entity achieved $307 million in profits and currently trades near $23.96 per share, backed by a price-to-earnings ratio of 17.62. Despite the annualized share price decline of -10.04%, these results demonstrate resilience and continued income stability—an important consideration for analysts seeking evidence of constructive business fundamentals post-acquisition.
The strategic merger has fortified Rentokil Initial’s status as a leading provider of pest control services in North America, with ongoing presence and operations in Ireland. The group, already a notable player in Ireland’s pest control market, further benefits from the integration of the Terminix brand and operational expertise. Local analysts in Ireland should note the company’s capability for service expansion and cross-selling, with a reinforced position stemming from the complementary strengths of both firms.
Current tax implications and listing structure favor institutional and retail Irish investors considering New York Stock Exchange exposure through Rentokil Initial’s ADRs. Any dividends paid on the ADRs are subject to the standard US withholding tax regime, and capital gains are taxed per IRS rules for non-US residents. As Rentokil Initial maintains strategic operations in both the UK and Ireland, this affords portfolio diversification seeking transatlantic business and revenue streams for Ireland-based investors.
There have been no indications of operational disruption in the company’s Irish activities following the acquisition, reaffirming the stability of local services and employment. Official communications highlight seamless integration, and the Irish pest control sector continues to see Rentokil’s visible presence and investment in technology and ecological pest management. This positive signal for Irish stakeholders suggests that the enlarged group will remain an industry pillar in Ireland, with potential for incremental growth and operational synergies supporting longer-term confidence in the combined Rentokil Initial-Former ServiceMaster entity.
FAQ
What is the latest dividend for ServiceMaster stock?
ServiceMaster stock, formerly traded as TMX, did not pay any dividends prior to its acquisition by Rentokil Initial in October 2022. The dividend yield was 0%. As the company no longer exists as a separate, listed entity, there are no current dividend payments. Investors interested in dividends from this sector may consider Rentokil Initial (RTO), the acquiring company, for any future distribution policies.
What is the forecast for ServiceMaster stock in 2025, 2026, and 2027?
As ServiceMaster as an independent stock is no longer traded, we'll refer to the last available closing price before the acquisition: $37.87. Applying the forecast logic, projected values would be $49.23 for end-2025, $56.81 for end-2026, and $75.74 for end-2027. The pest control sector remains structurally strong, with combined market leaders focusing on geographical expansion and operational synergies.
Should I sell my ServiceMaster shares?
Existing ServiceMaster shares have been converted as part of the merger with Rentokil Initial. Holding your investment in this sector could be beneficial, as the integration has created a dominant player in pest control across North America. The combined entity aims for growth and operational excellence, and the industry’s long-term trends remain favourable despite temporary share price fluctuations.
How are gains or dividends from ServiceMaster shares taxed for investors in Ireland?
For investors in Ireland, any gains or dividends from US-listed stocks like ServiceMaster (now part of Rentokil Initial) are subject to Irish capital gains tax and income tax, as well as US withholding tax on dividends. US dividends are typically taxed at 15% for Irish residents due to a tax treaty. Capital gains must be declared to the Irish Revenue, with an annual exemption threshold, and foreign tax credits may apply depending on your individual circumstances.
What is the latest dividend for ServiceMaster stock?
ServiceMaster stock, formerly traded as TMX, did not pay any dividends prior to its acquisition by Rentokil Initial in October 2022. The dividend yield was 0%. As the company no longer exists as a separate, listed entity, there are no current dividend payments. Investors interested in dividends from this sector may consider Rentokil Initial (RTO), the acquiring company, for any future distribution policies.
What is the forecast for ServiceMaster stock in 2025, 2026, and 2027?
As ServiceMaster as an independent stock is no longer traded, we'll refer to the last available closing price before the acquisition: $37.87. Applying the forecast logic, projected values would be $49.23 for end-2025, $56.81 for end-2026, and $75.74 for end-2027. The pest control sector remains structurally strong, with combined market leaders focusing on geographical expansion and operational synergies.
Should I sell my ServiceMaster shares?
Existing ServiceMaster shares have been converted as part of the merger with Rentokil Initial. Holding your investment in this sector could be beneficial, as the integration has created a dominant player in pest control across North America. The combined entity aims for growth and operational excellence, and the industry’s long-term trends remain favourable despite temporary share price fluctuations.
How are gains or dividends from ServiceMaster shares taxed for investors in Ireland?
For investors in Ireland, any gains or dividends from US-listed stocks like ServiceMaster (now part of Rentokil Initial) are subject to Irish capital gains tax and income tax, as well as US withholding tax on dividends. US dividends are typically taxed at 15% for Irish residents due to a tax treaty. Capital gains must be declared to the Irish Revenue, with an annual exemption threshold, and foreign tax credits may apply depending on your individual circumstances.