ROLLINS INC (ROL)
US7757111049 - Common Stock
ROL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 85 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. While showing a medium growth rate, ROL is valued expensive at the moment. These ratings would make ROL suitable for quality investing!
1. Profitability
1.1 Basic Checks
ROL had positive earnings in the past year.
ROL had a positive operating cash flow in the past year.
In the past 5 years ROL has always been profitable.
In the past 5 years ROL always reported a positive cash flow from operatings.
1.2 Ratios
ROL has a Return On Assets of 16.67%. This is amongst the best in the industry. ROL outperforms 96.47% of its industry peers.
Looking at the Return On Equity, with a value of 35.63%, ROL belongs to the top of the industry, outperforming 96.47% of the companies in the same industry.
ROL's Return On Invested Capital of 21.79% is amongst the best of the industry. ROL outperforms 96.47% of its industry peers.
ROL had an Average Return On Invested Capital over the past 3 years of 21.89%. This is significantly above the industry average of 9.80%.
| 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 91.76% of the companies in the same industry.
In the last couple of years the Profit Margin of ROL has grown nicely.
ROL's Operating Margin of 19.50% is amongst the best of the industry. ROL outperforms 89.41% of its industry peers.
In the last couple of years the Operating Margin of ROL has grown nicely.
Looking at the Gross Margin, with a value of 52.64%, ROL belongs to the top of the industry, outperforming 91.76% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ROL is creating value.
ROL has less shares outstanding than it did 1 year ago.
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 11.41. This indicates that ROL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.41, ROL belongs to the top of the industry, outperforming 95.29% of the companies in the same industry.
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's Debt to FCF ratio of 0.83 is amongst the best of the industry. ROL outperforms 85.88% 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.
ROL has a Debt to Equity ratio of 0.34. This is in the better half of the industry: ROL outperforms 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 11.41 |
ROIC/WACC2.43
WACC8.97%
2.3 Liquidity
A Current Ratio of 0.78 indicates that ROL may have some problems paying its short term obligations.
ROL has a worse Current ratio (0.78) than 89.41% of its industry peers.
ROL has a Quick 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.
Looking at the Quick ratio, with a value of 0.72, ROL is doing worse than 87.06% of the companies in the same industry.
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.
ROL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.07%.
The Revenue has been growing by 11.03% on average over the past years. This is quite good.
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
ROL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.42% yearly.
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 Y11.87%
EPS Next 2Y12.43%
EPS Next 3Y12.27%
EPS Next 5Y12.42%
Revenue Next Year9.93%
Revenue Next 2Y9.08%
Revenue Next 3Y8.64%
Revenue Next 5Y8.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
ROL is valuated quite expensively with a Price/Earnings ratio of 49.34.
ROL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 30.20, ROL is valued quite expensively.
The Price/Forward Earnings ratio is 42.07, which means the current valuation is very expensive for ROL.
The rest of the industry has a similar Price/Forward Earnings ratio as ROL.
The average S&P500 Price/Forward Earnings ratio is at 23.28. ROL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.34 | ||
| Fwd PE | 42.07 |
4.2 Price Multiples
ROL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ROL is more expensive than 68.24% of the companies in the same industry.
ROL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.1 | ||
| EV/EBITDA | 30.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ROL has an outstanding profitability rating, which may justify a higher PE ratio.
ROL's earnings are expected to grow with 12.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.16
PEG (5Y)3.63
EPS Next 2Y12.43%
EPS Next 3Y12.27%
5. Dividend
5.1 Amount
ROL has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.26, ROL pays a bit more dividend than its industry peers.
ROL's Dividend Yield is slightly below the S&P500 average, which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
The dividend of ROL is nicely growing with an annual growth rate of 11.71%!
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
ROL pays out 61.87% of its income as dividend. 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 2Y12.43%
EPS Next 3Y12.27%
ROLLINS INC
NYSE:ROL (11/4/2024, 8:04:00 PM)
After market: 47.86 0 (0%)47.86
+0.53 (+1.12%)
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 Cap23.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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)
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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 | 49.34 | ||
| Fwd PE | 42.07 | ||
| 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)4.16
PEG (5Y)3.63
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 Y11.87%
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