ROLLINS INC (ROL)
US7757111049 - Common Stock
ROL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. ROL gets an excellent profitability rating and is at the same time showing great financial health properties. ROL is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, ROL could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ROL was profitable.
ROL had a positive operating cash flow in the past year.
ROL had positive earnings in each of the past 5 years.
ROL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ROL (16.67%) is better than 96.43% of its industry peers.
The Return On Equity of ROL (35.63%) is better than 96.43% of its industry peers.
The Return On Invested Capital of ROL (21.79%) is better than 96.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROL is significantly above the industry average of 9.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.67% | ||
| ROE | 35.63% | ||
| ROIC | 21.79% |
ROA(3y)17.26%
ROA(5y)15.51%
ROE(3y)32.94%
ROE(5y)30.29%
ROIC(3y)21.89%
ROIC(5y)20.55%
1.3 Margins
With an excellent Profit Margin value of 14.18%, ROL belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Profit Margin of ROL has grown nicely.
ROL has a better Operating Margin (19.50%) than 89.29% of its industry peers.
In the last couple of years the Operating Margin of ROL has grown nicely.
The Gross Margin of ROL (52.64%) is better than 91.67% of its industry peers.
ROL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.5% | ||
| PM (TTM) | 14.18% | ||
| GM | 52.64% |
OM growth 3Y4.62%
OM growth 5Y2.41%
PM growth 3Y5.46%
PM growth 5Y2.16%
GM growth 3Y0.45%
GM growth 5Y0.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ROL is creating value.
Compared to 1 year ago, ROL has less shares outstanding
Compared to 5 years ago, ROL has less shares outstanding
The debt/assets ratio for ROL is higher compared to a year ago.
2.2 Solvency
ROL has an Altman-Z score of 11.81. This indicates that ROL is financially healthy and has little risk of bankruptcy at the moment.
ROL has a better Altman-Z score (11.81) than 95.24% of its industry peers.
ROL has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
ROL has a Debt to FCF ratio of 0.83. This is amongst the best in the industry. ROL outperforms 85.71% of its industry peers.
ROL has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ROL (0.34) is better than 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 11.81 |
ROIC/WACC2.42
WACC9.01%
2.3 Liquidity
ROL has a Current Ratio of 0.78. This is a bad value and indicates that ROL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.78, ROL is not doing good in the industry: 88.10% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that ROL may have some problems paying its short term obligations.
ROL's Quick ratio of 0.72 is on the low side compared to the rest of the industry. ROL is outperformed by 85.71% of its industry peers.
The current and quick ratio evaluation for ROL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.79% over the past year.
The Earnings Per Share has been growing by 13.61% on average over the past years. This is quite good.
The Revenue has grown by 11.07% in the past year. This is quite good.
ROL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.03% yearly.
EPS 1Y (TTM)12.79%
EPS 3Y18.32%
EPS 5Y13.61%
EPS Q2Q%3.57%
Revenue 1Y (TTM)11.07%
Revenue growth 3Y12.45%
Revenue growth 5Y11.03%
Sales Q2Q%9.02%
3.2 Future
The Earnings Per Share is expected to grow by 12.42% on average over the next years. This is quite good.
ROL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.44% yearly.
EPS Next Y11.67%
EPS Next 2Y12.3%
EPS Next 3Y12.12%
EPS Next 5Y12.42%
Revenue Next Year9.93%
Revenue Next 2Y9.12%
Revenue Next 3Y8.71%
Revenue Next 5Y8.44%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 51.16, the valuation of ROL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ROL.
ROL is valuated expensively when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 43.72, ROL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROL is on the same level as its industry peers.
ROL is valuated expensively when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.16 | ||
| Fwd PE | 43.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROL is valued a bit more expensive than the industry average as 69.05% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.7 | ||
| EV/EBITDA | 32.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ROL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ROL may justify a higher PE ratio.
A more expensive valuation may be justified as ROL's earnings are expected to grow with 12.12% in the coming years.
PEG (NY)4.38
PEG (5Y)3.76
EPS Next 2Y12.3%
EPS Next 3Y12.12%
5. Dividend
5.1 Amount
ROL has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.10, ROL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.32, ROL pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
On average, the dividend of ROL grows each year by 11.71%, which is quite nice.
ROL has paid a dividend for at least 10 years, which is a reliable track record.
ROL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.71%
Div Incr Years21
Div Non Decr Years24
5.3 Sustainability
61.87% of the earnings are spent on dividend by ROL. This is not a sustainable payout ratio.
The dividend of ROL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP61.87%
EPS Next 2Y12.3%
EPS Next 3Y12.12%
ROLLINS INC
NYSE:ROL (11/21/2024, 8:04:00 PM)
After market: 49.63 0 (0%)49.63
+0.19 (+0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.16 | ||
| Fwd PE | 43.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.38
PEG (5Y)3.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.67% | ||
| ROE | 35.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.5% | ||
| PM (TTM) | 14.18% | ||
| GM | 52.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.79%
EPS 3Y18.32%
EPS 5Y
EPS Q2Q%
EPS Next Y11.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.07%
Revenue growth 3Y12.45%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y