Is NYSE:ROL suited for quality investing?

In this article we will dive into ROLLINS INC (NYSE:ROL) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ROLLINS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Highlighting Notable Quality Metrics of NYSE:ROL.

• The 5-year revenue growth of ROLLINS INC has been remarkable, with 11.03% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• ROLLINS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 122.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• ROLLINS INC maintains a healthy Debt/Free Cash Flow Ratio of 0.97, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 127.0%, ROLLINS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• ROLLINS INC has consistently achieved strong EBIT growth over the past 5 years, with a 13.7% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• ROLLINS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, ROL scores 7 out of 10 in our fundamental rating. ROL was compared to 83 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making ROL a very profitable company, without any liquidiy or solvency issues. ROL is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make ROL a good candidate for quality investing.

Check the latest full fundamental report of ROL for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.