ROLLINS INC (ROL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ROL - US7757111049 - Common Stock
60.31 USD
+0.68 (+1.14%)
60.31 USD
0 (0%)
Overall ROL gets a fundamental rating of 7 out of 10. We evaluated ROL against 82 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. This makes ROL very considerable for quality investing!
1. Profitability
1.1 Basic Checks
ROL had positive earnings in the past year.
In the past year ROL had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 16.02%, ROL belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 33.68%, ROL belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
ROL's Return On Invested Capital of 21.18% is amongst the best of the industry. ROL outperforms 96.34% of its industry peers.
ROL had an Average Return On Invested Capital over the past 3 years of 22.15%. This is significantly above the industry average of 10.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | 33.68% | ||
| ROIC | 21.18% |
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
The Profit Margin of ROL (14.02%) is better than 92.68% of its industry peers.
ROL's Profit Margin has improved in the last couple of years.
The Operating Margin of ROL (19.47%) is better than 93.90% of its industry peers.
In the last couple of years the Operating Margin of ROL has grown nicely.
ROL has a better Gross Margin (52.86%) than 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 | 19.47% | ||
| PM (TTM) | 14.02% | ||
| GM | 52.86% |
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.
The number of shares outstanding for ROL remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ROL has less shares outstanding
ROL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.60 indicates that ROL is not in any danger for bankruptcy at the moment.
ROL's Altman-Z score of 12.60 is amongst the best of the industry. ROL outperforms 93.90% of its industry peers.
The Debt to FCF ratio of ROL is 0.72, which is an excellent value as it means it would take ROL, only 0.72 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.72, ROL belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that ROL is not too dependend on debt financing.
ROL has a Debt to Equity ratio of 0.32. This is in the better half of the industry: ROL outperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | 12.6 |
ROIC/WACC2.45
WACC8.65%
2.3 Liquidity
ROL has a Current Ratio of 0.77. 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 Current ratio (0.77) than 81.71% of its industry peers.
A Quick Ratio of 0.71 indicates that ROL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, ROL is doing worse than 80.49% of the companies in the same industry.
ROL does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.77 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.40% over the past year.
Measured over the past years, ROL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.58% on average per year.
ROL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.17%.
ROL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.95% yearly.
EPS 1Y (TTM)13.4%
EPS 3Y13.9%
EPS 5Y15.58%
EPS Q2Q%20.69%
Revenue 1Y (TTM)11.17%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%11.99%
3.2 Future
The Earnings Per Share is expected to grow by 10.77% 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 8.84% yearly.
EPS Next Y15.29%
EPS Next 2Y13.4%
EPS Next 3Y12.65%
EPS Next 5Y10.77%
Revenue Next Year11.67%
Revenue Next 2Y10.37%
Revenue Next 3Y9.62%
Revenue Next 5Y8.84%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 54.83, the valuation of ROL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ROL.
The average S&P500 Price/Earnings ratio is at 25.47. ROL is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 47.37, ROL can be considered very expensive at the moment.
ROL's Price/Forward Earnings is on the same level as the industry average.
ROL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.83 | ||
| Fwd PE | 47.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROL is valued a bit more expensive than the industry average as 63.41% of the companies are valued more cheaply.
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 | 43.3 | ||
| EV/EBITDA | 35.21 |
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 12.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.59
PEG (5Y)3.52
EPS Next 2Y13.4%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
ROL has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.61, ROL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, ROL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
The dividend of ROL is nicely growing with an annual growth rate of 14.46%!
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)14.46%
Div Incr Years22
Div Non Decr Years25
5.3 Sustainability
61.92% of the earnings are spent on dividend by ROL. This is not a sustainable payout ratio.
ROL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.92%
EPS Next 2Y13.4%
EPS Next 3Y12.65%
60.31
+0.68 (+1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners55.1%
Inst Owner Change-0.56%
Ins Owners4.71%
Ins Owner Change-11.4%
Market Cap29.23B
Revenue(TTM)3.68B
Net Income(TTM)515.94M
Analysts75.79
Price Target62.72 (4%)
Short Float %2.61%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend0.62
Dividend Growth(5Y)14.46%
DP61.92%
Div Incr Years22
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.65%
Min EPS beat(2)-1.71%
Max EPS beat(2)5.01%
EPS beat(4)2
Avg EPS beat(4)0.43%
Min EPS beat(4)-1.8%
Max EPS beat(4)5.01%
EPS beat(8)3
Avg EPS beat(8)-0.63%
EPS beat(12)6
Avg EPS beat(12)0.8%
EPS beat(16)8
Avg EPS beat(16)0.72%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.47%
Max Revenue beat(4)0.77%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)6
Avg Revenue beat(12)0.06%
Revenue beat(16)10
Avg Revenue beat(16)0.5%
PT rev (1m)1.94%
PT rev (3m)4.85%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)1.83%
EPS NY rev (1m)1.38%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.83 | ||
| Fwd PE | 47.37 | ||
| P/S | 7.94 | ||
| P/FCF | 43.3 | ||
| P/OCF | 41.66 | ||
| P/B | 19.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.21 |
EPS(TTM)1.1
EY1.82%
EPS(NY)1.27
Fwd EY2.11%
FCF(TTM)1.39
FCFY2.31%
OCF(TTM)1.45
OCFY2.4%
SpS7.59
BVpS3.16
TBVpS-0.88
PEG (NY)3.59
PEG (5Y)3.52
Graham Number8.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | 33.68% | ||
| ROCE | 28.59% | ||
| ROIC | 21.18% | ||
| ROICexc | 22.32% | ||
| ROICexgc | 125.52% | ||
| OM | 19.47% | ||
| PM (TTM) | 14.02% | ||
| GM | 52.86% | ||
| FCFM | 18.34% |
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%
ROICexgc growth 3Y-6.03%
ROICexgc 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-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.72 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 21.46% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 27.15 | ||
| Cash Conversion | 83.48% | ||
| Profit Quality | 130.82% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 12.6 |
F-Score6
WACC8.65%
ROIC/WACC2.45
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)13.4%
EPS 3Y13.9%
EPS 5Y15.58%
EPS Q2Q%20.69%
EPS Next Y15.29%
EPS Next 2Y13.4%
EPS Next 3Y12.65%
EPS Next 5Y10.77%
Revenue 1Y (TTM)11.17%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%11.99%
Revenue Next Year11.67%
Revenue Next 2Y10.37%
Revenue Next 3Y9.62%
Revenue Next 5Y8.84%
EBIT growth 1Y10.99%
EBIT growth 3Y13.66%
EBIT growth 5Y15.67%
EBIT Next Year34.12%
EBIT Next 3Y18.33%
EBIT Next 5Y13.16%
FCF growth 1Y43.63%
FCF growth 3Y15.69%
FCF growth 5Y15.51%
OCF growth 1Y40.6%
OCF growth 3Y14.78%
OCF growth 5Y14.47%
ROLLINS INC / ROL FAQ
Can you provide the ChartMill fundamental rating for ROLLINS INC?
ChartMill assigns a fundamental rating of 7 / 10 to ROL.
What is the valuation status of ROLLINS INC (ROL) stock?
ChartMill assigns a valuation rating of 2 / 10 to ROLLINS INC (ROL). This can be considered as Overvalued.
Can you provide the profitability details for ROLLINS INC?
ROLLINS INC (ROL) has a profitability rating of 9 / 10.
How financially healthy is ROLLINS INC?
The financial health rating of ROLLINS INC (ROL) is 7 / 10.
Can you provide the expected EPS growth for ROL stock?
The Earnings per Share (EPS) of ROLLINS INC (ROL) is expected to grow by 15.29% in the next year.