ROLLINS INC (ROL) Stock Fundamental Analysis
NYSE:ROL - New York Stock Exchange, Inc. - US7757111049 - Common Stock - Currency: USD
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. ROL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
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 (16.54%) is better than 95.18% of its industry peers.
ROL has a better Return On Equity (35.05%) than 93.98% of its industry peers.
With an excellent Return On Invested Capital value of 22.39%, ROL belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
ROL had an Average Return On Invested Capital over the past 3 years of 22.15%. This is significantly above the industry average of 10.77%.
The last Return On Invested Capital (22.39%) for ROL is above the 3 year average (22.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.54% | ||
| ROE | 35.05% | ||
| ROIC | 22.39% |
ROA(3y)16.89%
ROA(5y)16.49%
ROE(3y)33.93%
ROE(5y)32.31%
ROIC(3y)22.15%
ROIC(5y)21.52%
1.3 Margins
ROL has a Profit Margin of 13.76%. This is amongst the best in the industry. ROL outperforms 89.16% of its industry peers.
ROL's Profit Margin has improved in the last couple of years.
ROL has a Operating Margin of 19.39%. This is amongst the best in the industry. ROL outperforms 90.36% of its industry peers.
In the last couple of years the Operating Margin of ROL has grown nicely.
ROL's Gross Margin of 52.69% is amongst the best of the industry. ROL outperforms 91.57% of its industry peers.
ROL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.39% | ||
| PM (TTM) | 13.76% | ||
| GM | 52.69% |
OM growth 3Y1.65%
OM growth 5Y4.25%
PM growth 3Y-2.19%
PM growth 5Y6.41%
GM growth 3Y0.41%
GM growth 5Y0.77%
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.
Compared to 1 year ago, ROL has about the same amount of shares outstanding.
Compared to 5 years ago, ROL has less shares outstanding
The debt/assets ratio for ROL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 13.15 indicates that ROL is not in any danger for bankruptcy at the moment.
The Altman-Z score of ROL (13.15) is better than 96.39% of its industry peers.
The Debt to FCF ratio of ROL is 0.68, which is an excellent value as it means it would take ROL, only 0.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ROL (0.68) is better than 86.75% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that ROL is not too dependend on debt financing.
The Debt to Equity ratio of ROL (0.30) is better than 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 13.15 |
ROIC/WACC2.51
WACC8.92%
2.3 Liquidity
A Current Ratio of 0.69 indicates that ROL may have some problems paying its short term obligations.
ROL has a Current ratio of 0.69. This is amonst the worse of the industry: ROL underperforms 85.54% of its industry peers.
ROL has a Quick Ratio of 0.69. This is a bad value and indicates that ROL is not financially healthy enough and could expect problems in meeting its short term obligations.
ROL has a worse Quick ratio (0.62) than 84.34% 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 | 0.69 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.00% over the past year.
ROL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.58% yearly.
The Revenue has grown by 10.26% in the past year. This is quite good.
The Revenue has been growing by 10.95% on average over the past years. This is quite good.
EPS 1Y (TTM)10%
EPS 3Y13.9%
EPS 5Y15.58%
EPS Q2Q%9.52%
Revenue 1Y (TTM)10.26%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%10.35%
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 10.30% yearly.
The Revenue is expected to grow by 8.43% on average over the next years. This is quite good.
EPS Next Y13.09%
EPS Next 2Y12.66%
EPS Next 3Y12.61%
EPS Next 5Y10.3%
Revenue Next Year9.97%
Revenue Next 2Y9.1%
Revenue Next 3Y8.93%
Revenue Next 5Y8.43%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
With a Price/Earnings ratio of 56.34, ROL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ROL is valued a bit more expensive than the industry average as 60.24% of the companies are valued more cheaply.
ROL is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 49.82, ROL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as ROL.
When comparing the Price/Forward Earnings ratio of ROL to the average of the S&P500 Index (21.08), we can say ROL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.34 | ||
| Fwd PE | 49.82 |
4.2 Price Multiples
68.67% of the companies in the same industry are cheaper than ROL, based on the Enterprise Value to EBITDA ratio.
ROL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.64 | ||
| EV/EBITDA | 35.52 |
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.
ROL has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ROL's earnings are expected to grow with 12.61% in the coming years.
PEG (NY)4.3
PEG (5Y)3.62
EPS Next 2Y12.66%
EPS Next 3Y12.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, ROL has a reasonable but not impressive dividend return.
ROL's Dividend Yield is a higher than the industry average which is at 2.64.
With a Dividend Yield of 1.22, ROL pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of ROL grows each year by 14.46%, which is quite nice.
ROL has been paying a dividend for at least 10 years, so it has a reliable track record.
ROL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.46%
Div Incr Years22
Div Non Decr Years25
5.3 Sustainability
ROL pays out 63.89% of its income as dividend. This is not a sustainable payout ratio.
ROL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP63.89%
EPS Next 2Y12.66%
EPS Next 3Y12.61%
55.78
+0.77 (+1.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners53.78%
Inst Owner Change0%
Ins Owners4.99%
Ins Owner Change-0.02%
Market Cap27.06B
Analysts71.25
Price Target51.44 (-7.78%)
Short Float %1.99%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend0.62
Dividend Growth(5Y)14.46%
DP63.89%
Div Incr Years22
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.25%
Min EPS beat(2)-4.7%
Max EPS beat(2)-1.8%
EPS beat(4)1
Avg EPS beat(4)-1.68%
Min EPS beat(4)-4.7%
Max EPS beat(4)0.36%
EPS beat(8)3
Avg EPS beat(8)0.66%
EPS beat(12)6
Avg EPS beat(12)1.06%
EPS beat(16)8
Avg EPS beat(16)2.27%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-0.43%
Max Revenue beat(2)0.77%
Revenue beat(4)2
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)0.77%
Revenue beat(8)5
Avg Revenue beat(8)0.29%
Revenue beat(12)8
Avg Revenue beat(12)0.59%
Revenue beat(16)11
Avg Revenue beat(16)0.85%
PT rev (1m)-1.7%
PT rev (3m)3.06%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)0.3%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.34 | ||
| Fwd PE | 49.82 | ||
| P/S | 7.98 | ||
| P/FCF | 46.64 | ||
| P/OCF | 44.53 | ||
| P/B | 20.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.52 |
EPS(TTM)0.99
EY1.77%
EPS(NY)1.12
Fwd EY2.01%
FCF(TTM)1.2
FCFY2.14%
OCF(TTM)1.25
OCFY2.25%
SpS6.99
BVpS2.74
TBVpS-0.77
PEG (NY)4.3
PEG (5Y)3.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.54% | ||
| ROE | 35.05% | ||
| ROCE | 30.22% | ||
| ROIC | 22.39% | ||
| ROICexc | 23.36% | ||
| ROICexgc | 127.41% | ||
| OM | 19.39% | ||
| PM (TTM) | 13.76% | ||
| GM | 52.69% | ||
| FCFM | 17.12% |
ROA(3y)16.89%
ROA(5y)16.49%
ROE(3y)33.93%
ROE(5y)32.31%
ROIC(3y)22.15%
ROIC(5y)21.52%
ROICexc(3y)23.33%
ROICexc(5y)22.85%
ROICexgc(3y)136.66%
ROICexgc(5y)139.1%
ROCE(3y)29.89%
ROCE(5y)29.05%
ROICexcg growth 3Y-6.03%
ROICexcg growth 5Y8.73%
ROICexc growth 3Y0.12%
ROICexc growth 5Y4.25%
OM growth 3Y1.65%
OM growth 5Y4.25%
PM growth 3Y-2.19%
PM growth 5Y6.41%
GM growth 3Y0.41%
GM growth 5Y0.77%
F-Score7
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 24.35% | ||
| Cap/Sales | 0.81% | ||
| Interest Coverage | 20.19 | ||
| Cash Conversion | 78.87% | ||
| Profit Quality | 124.38% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 13.15 |
F-Score7
WACC8.92%
ROIC/WACC2.51
Cap/Depr(3y)30.15%
Cap/Depr(5y)29.05%
Cap/Sales(3y)1%
Cap/Sales(5y)1.04%
Profit Quality(3y)118.83%
Profit Quality(5y)123.95%
High Growth Momentum
Growth
EPS 1Y (TTM)10%
EPS 3Y13.9%
EPS 5Y15.58%
EPS Q2Q%9.52%
EPS Next Y13.09%
EPS Next 2Y12.66%
EPS Next 3Y12.61%
EPS Next 5Y10.3%
Revenue 1Y (TTM)10.26%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%10.35%
Revenue Next Year9.97%
Revenue Next 2Y9.1%
Revenue Next 3Y8.93%
Revenue Next 5Y8.43%
EBIT growth 1Y11.69%
EBIT growth 3Y13.66%
EBIT growth 5Y15.67%
EBIT Next Year26.79%
EBIT Next 3Y15.91%
EBIT Next 5Y13.04%
FCF growth 1Y16.98%
FCF growth 3Y15.69%
FCF growth 5Y15.51%
OCF growth 1Y15.01%
OCF growth 3Y14.78%
OCF growth 5Y14.47%