ROLLINS INC (ROL)
US7757111049 - Common Stock
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ROL is valied quite expensively at the moment, while it does show a decent growth rate. 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
Looking at the Return On Assets, with a value of 16.67%, ROL belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
With an excellent Return On Equity value of 35.63%, ROL belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
ROL has a Return On Invested Capital of 21.79%. This is amongst the best in the industry. ROL outperforms 96.39% 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 10.00%.
| 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 Profit Margin of 14.18%. This is amongst the best in the industry. ROL outperforms 91.57% of its industry peers.
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 89.16% of its industry peers.
ROL's Operating Margin has improved in the last couple of years.
ROL has a better Gross Margin (52.64%) than 91.57% 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.
ROL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ROL has been reduced compared to 5 years ago.
Compared to 1 year ago, ROL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.33 indicates that ROL is not in any danger for bankruptcy at the moment.
ROL has a better Altman-Z score (11.33) than 96.39% of its industry peers.
The Debt to FCF ratio of ROL is 0.83, which is an excellent value as it means it would take ROL, only 0.83 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.83, ROL belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that ROL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, ROL is in the better half of the industry, outperforming 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 11.33 |
ROIC/WACC2.38
WACC9.16%
2.3 Liquidity
A Current Ratio of 0.78 indicates that ROL may have some problems paying its short term obligations.
ROL's Current ratio of 0.78 is on the low side compared to the rest of the industry. ROL is outperformed by 86.75% of its industry peers.
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 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 | 0.78 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.79% over the past year.
ROL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.61% yearly.
The Revenue has grown by 11.07% in the past year. This is quite good.
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.
ROL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.48% yearly.
EPS Next Y11.67%
EPS Next 2Y12.35%
EPS Next 3Y12.15%
EPS Next 5Y12.56%
Revenue Next Year9.93%
Revenue Next 2Y9.15%
Revenue Next 3Y8.74%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 48.37, the valuation of ROL can be described as expensive.
ROL's Price/Earnings ratio is a bit more expensive when compared to the industry. ROL is more expensive than 60.24% of the companies in the same industry.
ROL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 41.30 indicates a quite expensive valuation of ROL.
ROL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, ROL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.37 | ||
| Fwd PE | 41.3 |
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 68.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.26 | ||
| EV/EBITDA | 30.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ROL may justify a higher PE ratio.
ROL's earnings are expected to grow with 12.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.14
PEG (5Y)3.55
EPS Next 2Y12.35%
EPS Next 3Y12.15%
5. Dividend
5.1 Amount
ROL has a Yearly Dividend Yield of 1.40%.
Compared to an average industry Dividend Yield of 2.08, ROL pays a bit more dividend than its industry peers.
ROL's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| 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 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.
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 2Y12.35%
EPS Next 3Y12.15%
ROLLINS INC
NYSE:ROL (12/20/2024, 8:04:00 PM)
After market: 47 +0.08 (+0.17%)46.92
-0.09 (-0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.25%
Inst Owner Change0.27%
Ins Owners5.02%
Ins Owner Change-0.04%
Market Cap22.72B
Analysts72.5
Price Target50 (6.56%)
Short Float %2.44%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Dividend Growth(5Y)11.71%
DP61.87%
Div Incr Years22
Div Non Decr Years25
Ex-Date
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)-1.86%
PT rev (3m)-2.26%
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 | 48.37 | ||
| Fwd PE | 41.3 | ||
| P/S | 6.86 | ||
| P/FCF | 42.26 | ||
| P/OCF | 39.7 | ||
| P/B | 17.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.58 |
EPS(TTM)0.97
EY2.07%
EPS(NY)1.14
Fwd EY2.42%
FCF(TTM)1.11
FCFY2.37%
OCF(TTM)1.18
OCFY2.52%
SpS6.84
BVpS2.72
TBVpS-0.74
PEG (NY)4.14
PEG (5Y)3.55
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 | 11.33 |
F-Score8
WACC9.16%
ROIC/WACC2.38
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 2Y9.15%
Revenue Next 3Y8.74%
Revenue Next 5Y8.48%
EBIT growth 1Y12.4%
EBIT growth 3Y17.64%
EBIT growth 5Y13.7%
EBIT Next Year29.22%
EBIT Next 3Y16.56%
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%