ROLLINS INC (ROL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ROL - US7757111049 - Common Stock
60.05 USD
+0.56 (+0.94%)
60.05 USD
0 (0%)
ROL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 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. ROL is quite expensive at the moment. 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.
In the past year ROL had a positive cash flow from operations.
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
With an excellent Return On Assets value of 16.02%, ROL belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
The Return On Equity of ROL (33.68%) is better than 95.12% of its industry peers.
With an excellent Return On Invested Capital value of 21.18%, ROL belongs to the best of the industry, outperforming 96.34% 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 10.13%.
| 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
With an excellent Profit Margin value of 14.02%, ROL belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
ROL's Profit Margin has improved in the last couple of years.
ROL has a better Operating Margin (19.47%) 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.
ROL's Gross Margin has been stable in the last couple of years.
| 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
ROL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ROL remains at a similar level compared to 1 year ago.
The number of shares outstanding for ROL has been reduced compared to 5 years ago.
The debt/assets ratio for ROL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.48 indicates that ROL is not in any danger for bankruptcy at the moment.
ROL has a better Altman-Z score (12.48) than 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.
With an excellent Debt to FCF ratio value of 0.72, ROL belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that ROL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.32, ROL is doing good in the industry, outperforming 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | 12.48 |
ROIC/WACC2.41
WACC8.78%
2.3 Liquidity
A Current Ratio of 0.77 indicates that ROL may have some problems paying 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.
With a Quick ratio value of 0.71, ROL is not doing good in the industry: 79.27% of the companies in the same industry are doing better.
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%.
The Revenue has been growing by 10.95% on average over the past years. This is quite good.
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
Based on estimates for the next years, ROL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.77% on average per year.
Based on estimates for the next years, ROL will show a quite strong growth in Revenue. The Revenue will grow by 8.84% on average per year.
EPS Next Y16.54%
EPS Next 2Y14.1%
EPS Next 3Y13.2%
EPS Next 5Y10.77%
Revenue Next Year11.84%
Revenue Next 2Y10.53%
Revenue Next 3Y9.8%
Revenue Next 5Y8.84%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 54.59, which means the current valuation is very expensive for ROL.
ROL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ROL to the average of the S&P500 Index (26.56), we can say ROL is valued expensively.
With a Price/Forward Earnings ratio of 46.59, ROL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as ROL.
The average S&P500 Price/Forward Earnings ratio is at 23.79. ROL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.59 | ||
| Fwd PE | 46.59 |
4.2 Price Multiples
63.41% 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 | 42.81 | ||
| EV/EBITDA | 34.81 |
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 13.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.3
PEG (5Y)3.5
EPS Next 2Y14.1%
EPS Next 3Y13.2%
5. Dividend
5.1 Amount
ROL has a Yearly Dividend Yield of 1.23%.
ROL's Dividend Yield is a higher than the industry average which is at 0.93.
ROL's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of ROL is nicely growing with an annual growth rate of 14.46%!
ROL has been paying a dividend for at least 10 years, so it has 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)14.46%
Div Incr Years22
Div Non Decr Years25
5.3 Sustainability
ROL pays out 61.92% 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.
DP61.92%
EPS Next 2Y14.1%
EPS Next 3Y13.2%
60.05
+0.56 (+0.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners55.85%
Inst Owner Change-0.54%
Ins Owners4.64%
Ins Owner Change-11.35%
Market Cap28.89B
Revenue(TTM)3.68B
Net Income(TTM)515.94M
Analysts77
Price Target63.33 (5.46%)
Short Float %2.63%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)2.93%
PT rev (3m)2.93%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)1.88%
EPS NY rev (1m)1.08%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.59 | ||
| Fwd PE | 46.59 | ||
| P/S | 7.85 | ||
| P/FCF | 42.81 | ||
| P/OCF | 41.19 | ||
| P/B | 18.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.81 |
EPS(TTM)1.1
EY1.83%
EPS(NY)1.29
Fwd EY2.15%
FCF(TTM)1.4
FCFY2.34%
OCF(TTM)1.46
OCFY2.43%
SpS7.65
BVpS3.18
TBVpS-0.88
PEG (NY)3.3
PEG (5Y)3.5
Graham Number8.88
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 | 12.48 |
F-Score6
WACC8.78%
ROIC/WACC2.41
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 Y16.54%
EPS Next 2Y14.1%
EPS Next 3Y13.2%
EPS Next 5Y10.77%
Revenue 1Y (TTM)11.17%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%11.99%
Revenue Next Year11.84%
Revenue Next 2Y10.53%
Revenue Next 3Y9.8%
Revenue Next 5Y8.84%
EBIT growth 1Y10.99%
EBIT growth 3Y13.66%
EBIT growth 5Y15.67%
EBIT Next Year28.94%
EBIT Next 3Y16.74%
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 16.54% in the next year.