ROLLINS INC (ROL) Stock Fundamental Analysis
NYSE:ROL - New York Stock Exchange, Inc. - US7757111049 - Common Stock
We assign a fundamental rating of 7 out of 10 to ROL. ROL was compared to 83 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
In the past year ROL was profitable.
ROL had a positive operating cash flow in the past year.
Each year in the past 5 years ROL has been profitable.
Each year in the past 5 years ROL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ROL (16.67%) is better than 96.34% of its industry peers.
With an excellent Return On Equity value of 35.63%, ROL belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.79%, ROL belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROL is significantly above the industry average of 10.08%.
| 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
ROL has a better Profit Margin (14.18%) than 91.46% of its industry peers.
In the last couple of years the Profit Margin of ROL has grown nicely.
With an excellent Operating Margin value of 19.50%, ROL belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
In the last couple of years the Operating Margin of ROL has grown nicely.
ROL has a Gross Margin of 52.64%. This is amongst the best in the industry. ROL outperforms 91.46% of its industry peers.
In the last couple of years the Gross Margin of ROL has remained more or less at the same level.
| 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.
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
An Altman-Z score of 11.66 indicates that ROL is not in any danger for bankruptcy at the moment.
ROL has a better Altman-Z score (11.66) than 96.34% 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.
The Debt to FCF ratio of ROL (0.83) is better than 87.80% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that ROL is not too dependend on debt financing.
ROL's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. ROL outperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 11.66 |
ROIC/WACC2.37
WACC9.2%
2.3 Liquidity
A Current Ratio of 0.78 indicates that ROL may have some problems paying its short term obligations.
With a Current ratio value of 0.78, ROL is not doing good in the industry: 87.80% 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.
Looking at the Quick ratio, with a value of 0.72, ROL is doing worse than 85.37% 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
ROL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.79%, which is quite good.
Measured over the past years, ROL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.61% on average per year.
Looking at the last year, ROL shows a quite strong growth in Revenue. The Revenue has grown by 11.07% in the last year.
Measured over the past years, ROL shows a quite strong growth in Revenue. The Revenue has been growing by 11.03% on average per year.
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 12.56% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.48% on average over the next years. This is quite good.
EPS Next Y11.67%
EPS Next 2Y12.35%
EPS Next 3Y12.15%
EPS Next 5Y12.56%
Revenue Next Year9.93%
Revenue Next 2Y9.12%
Revenue Next 3Y8.71%
Revenue Next 5Y8.48%
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
With a Price/Earnings ratio of 50.14, ROL can be considered very expensive at the moment.
ROL's Price/Earnings is on the same level as the industry average.
ROL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 42.82, ROL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as ROL.
ROL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.14 | ||
| Fwd PE | 42.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROL indicates a slightly more expensive valuation: ROL is more expensive than 69.51% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.81 | ||
| EV/EBITDA | 31.69 |
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.
A more expensive valuation may be justified as ROL's earnings are expected to grow with 12.15% in the coming years.
PEG (NY)4.3
PEG (5Y)3.69
EPS Next 2Y12.35%
EPS Next 3Y12.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, ROL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.09, ROL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.37, ROL pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.71%
Div Incr Years22
Div Non Decr Years25
5.3 Sustainability
61.87% of the earnings are spent on dividend by ROL. This is not a sustainable payout ratio.
ROL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP61.87%
EPS Next 2Y12.35%
EPS Next 3Y12.15%
ROLLINS INC
NYSE:ROL (1/21/2025, 8:24:30 PM)
After market: 48.64 0 (0%)48.64
+0.21 (+0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.25%
Inst Owner Change0.14%
Ins Owners5.02%
Ins Owner Change-0.04%
Market Cap23.56B
Analysts72.5
Price Target49.91 (2.61%)
Short Float %2.26%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend0.54
Dividend Growth(5Y)11.71%
DP61.87%
Div Incr Years22
Div Non Decr Years25
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.17%
Min EPS beat(2)-4.7%
Max EPS beat(2)0.36%
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)4
Avg EPS beat(8)0.99%
EPS beat(12)6
Avg EPS beat(12)0.82%
EPS beat(16)9
Avg EPS beat(16)2.53%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)0.25%
Revenue beat(8)4
Avg Revenue beat(8)0.09%
Revenue beat(12)8
Avg Revenue beat(12)0.66%
Revenue beat(16)11
Avg Revenue beat(16)0.81%
PT rev (1m)-0.18%
PT rev (3m)-1.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.14 | ||
| Fwd PE | 42.82 | ||
| P/S | 7.12 | ||
| P/FCF | 43.81 | ||
| P/OCF | 41.16 | ||
| P/B | 17.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.69 |
EPS(TTM)0.97
EY1.99%
EPS(NY)1.14
Fwd EY2.34%
FCF(TTM)1.11
FCFY2.28%
OCF(TTM)1.18
OCFY2.43%
SpS6.84
BVpS2.72
TBVpS-0.74
PEG (NY)4.3
PEG (5Y)3.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.67% | ||
| ROE | 35.63% | ||
| ROCE | 29.43% | ||
| ROIC | 21.79% | ||
| ROICexc | 22.78% | ||
| ROICexgc | 113.01% | ||
| OM | 19.5% | ||
| PM (TTM) | 14.18% | ||
| GM | 52.64% | ||
| FCFM | 16.24% |
ROA(3y)17.26%
ROA(5y)15.51%
ROE(3y)32.94%
ROE(5y)30.29%
ROIC(3y)21.89%
ROIC(5y)20.55%
ROICexc(3y)23.28%
ROICexc(5y)21.95%
ROICexgc(3y)145.25%
ROICexgc(5y)130.28%
ROCE(3y)29.57%
ROCE(5y)27.76%
ROICexcg growth 3Y3.39%
ROICexcg growth 5Y-15.49%
ROICexc growth 3Y2.72%
ROICexc growth 5Y-7.57%
OM growth 3Y4.62%
OM growth 5Y2.41%
PM growth 3Y5.46%
PM growth 5Y2.16%
GM growth 3Y0.45%
GM growth 5Y0.5%
F-Score8
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 31.77% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 18.35 | ||
| Cash Conversion | 75.85% | ||
| Profit Quality | 114.53% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 11.66 |
F-Score8
WACC9.2%
ROIC/WACC2.37
Cap/Depr(3y)31.65%
Cap/Depr(5y)31%
Cap/Sales(3y)1.1%
Cap/Sales(5y)1.15%
Profit Quality(3y)112.39%
Profit Quality(5y)126.83%
High Growth Momentum
Growth
EPS 1Y (TTM)12.79%
EPS 3Y18.32%
EPS 5Y13.61%
EPS Q2Q%3.57%
EPS Next Y11.67%
EPS Next 2Y12.35%
EPS Next 3Y12.15%
EPS Next 5Y12.56%
Revenue 1Y (TTM)11.07%
Revenue growth 3Y12.45%
Revenue growth 5Y11.03%
Sales Q2Q%9.02%
Revenue Next Year9.93%
Revenue Next 2Y9.12%
Revenue Next 3Y8.71%
Revenue Next 5Y8.48%
EBIT growth 1Y12.4%
EBIT growth 3Y17.64%
EBIT growth 5Y13.7%
EBIT Next Year29.25%
EBIT Next 3Y16.48%
EBIT Next 5Y14.91%
FCF growth 1Y29.47%
FCF growth 3Y6.32%
FCF growth 5Y13.86%
OCF growth 1Y28.49%
OCF growth 3Y6.63%
OCF growth 5Y13.04%