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. Both the health and profitability get an excellent rating, making ROL a very profitable company, without any liquidiy or solvency issues. ROL is quite expensive at the moment. 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.
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
With an excellent Return On Assets value of 16.19%, ROL belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
ROL has a better Return On Equity (35.20%) than 93.98% of its industry peers.
With an excellent Return On Invested Capital value of 21.39%, ROL belongs to the best of the industry, outperforming 95.18% 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 10.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.19% | ||
| ROE | 35.2% | ||
| ROIC | 21.39% |
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 better Profit Margin (13.78%) than 87.95% of its industry peers.
In the last couple of years the Profit Margin of ROL has grown nicely.
ROL has a better Operating Margin (19.27%) than 90.36% of its industry peers.
ROL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 52.70%, ROL belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
ROL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.27% | ||
| PM (TTM) | 13.78% | ||
| GM | 52.7% |
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.
ROL has less shares outstanding than it did 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 12.71 indicates that ROL is not in any danger for bankruptcy at the moment.
ROL's Altman-Z score of 12.71 is amongst the best of the industry. ROL outperforms 95.18% of its industry peers.
The Debt to FCF ratio of ROL is 0.81, which is an excellent value as it means it would take ROL, only 0.81 years of fcf income to pay off all of its debts.
ROL's Debt to FCF ratio of 0.81 is amongst the best of the industry. ROL outperforms 87.95% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that ROL is not too dependend on debt financing.
ROL's Debt to Equity ratio of 0.36 is fine compared to the rest of the industry. ROL outperforms 61.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 12.71 |
ROIC/WACC2.37
WACC9.04%
2.3 Liquidity
A Current Ratio of 0.87 indicates that ROL may have some problems paying its short term obligations.
ROL has a worse Current ratio (0.87) than 79.52% of its industry peers.
ROL has a Quick Ratio of 0.87. 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's Quick ratio of 0.81 is on the low side compared to the rest of the industry. ROL is outperformed by 80.72% 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 | 0.87 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.78% over the past year.
The Earnings Per Share has been growing by 15.58% on average over the past years. This is quite good.
ROL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.46%.
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)9.78%
EPS 3Y13.9%
EPS 5Y15.58%
EPS Q2Q%10%
Revenue 1Y (TTM)9.46%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%9.91%
3.2 Future
The Earnings Per Share is expected to grow by 10.30% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.43% on average over the next years. This is quite good.
EPS Next Y13.44%
EPS Next 2Y12.78%
EPS Next 3Y12.44%
EPS Next 5Y10.3%
Revenue Next Year11.08%
Revenue Next 2Y9.78%
Revenue Next 3Y9.31%
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
A Price/Earnings ratio of 56.59 indicates a quite expensive valuation of ROL.
Compared to the rest of the industry, the Price/Earnings ratio of ROL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.60. ROL is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 45.39 indicates a quite expensive valuation of ROL.
ROL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ROL to the average of the S&P500 Index (22.43), we can say ROL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.59 | ||
| Fwd PE | 45.39 |
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 66.27% of the companies listed in the same industry.
ROL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.17 | ||
| EV/EBITDA | 35.86 |
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.
The excellent profitability rating of ROL may justify a higher PE ratio.
A more expensive valuation may be justified as ROL's earnings are expected to grow with 12.44% in the coming years.
PEG (NY)4.21
PEG (5Y)3.63
EPS Next 2Y12.78%
EPS Next 3Y12.44%
5. Dividend
5.1 Amount
ROL has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.47, ROL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ROL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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
63.98% 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.
DP63.98%
EPS Next 2Y12.78%
EPS Next 3Y12.44%
NYSE:ROL (5/21/2025, 12:57:10 PM)
57.155
-0.16 (-0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners53.78%
Inst Owner Change0.75%
Ins Owners4.99%
Ins Owner Change0.01%
Market Cap27.70B
Analysts71.25
Price Target55.32 (-3.21%)
Short Float %2.38%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend0.62
Dividend Growth(5Y)14.46%
DP63.98%
Div Incr Years22
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.79%
Min EPS beat(2)-1.8%
Max EPS beat(2)0.23%
EPS beat(4)2
Avg EPS beat(4)-1.48%
Min EPS beat(4)-4.7%
Max EPS beat(4)0.36%
EPS beat(8)3
Avg EPS beat(8)0.06%
EPS beat(12)6
Avg EPS beat(12)0.73%
EPS beat(16)8
Avg EPS beat(16)0.82%
Revenue beat(2)1
Avg Revenue beat(2)0.24%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)0.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)0.77%
Revenue beat(8)4
Avg Revenue beat(8)0%
Revenue beat(12)7
Avg Revenue beat(12)0.44%
Revenue beat(16)10
Avg Revenue beat(16)0.69%
PT rev (1m)7.53%
PT rev (3m)10.81%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.59 | ||
| Fwd PE | 45.39 | ||
| P/S | 8 | ||
| P/FCF | 46.17 | ||
| P/OCF | 44.17 | ||
| P/B | 20.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.86 |
EPS(TTM)1.01
EY1.77%
EPS(NY)1.26
Fwd EY2.2%
FCF(TTM)1.24
FCFY2.17%
OCF(TTM)1.29
OCFY2.26%
SpS7.15
BVpS2.8
TBVpS-0.74
PEG (NY)4.21
PEG (5Y)3.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.19% | ||
| ROE | 35.2% | ||
| ROCE | 28.87% | ||
| ROIC | 21.39% | ||
| ROICexc | 23.43% | ||
| ROICexgc | 124.56% | ||
| OM | 19.27% | ||
| PM (TTM) | 13.78% | ||
| GM | 52.7% | ||
| FCFM | 17.32% |
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 Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 23.61% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 23.87 | ||
| Cash Conversion | 80.14% | ||
| Profit Quality | 125.71% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 12.71 |
F-Score7
WACC9.04%
ROIC/WACC2.37
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)9.78%
EPS 3Y13.9%
EPS 5Y15.58%
EPS Q2Q%10%
EPS Next Y13.44%
EPS Next 2Y12.78%
EPS Next 3Y12.44%
EPS Next 5Y10.3%
Revenue 1Y (TTM)9.46%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%9.91%
Revenue Next Year11.08%
Revenue Next 2Y9.78%
Revenue Next 3Y9.31%
Revenue Next 5Y8.43%
EBIT growth 1Y9.67%
EBIT growth 3Y13.66%
EBIT growth 5Y15.67%
EBIT Next Year26.79%
EBIT Next 3Y15.91%
EBIT Next 5Y13.04%
FCF growth 1Y33.64%
FCF growth 3Y15.69%
FCF growth 5Y15.51%
OCF growth 1Y30.87%
OCF growth 3Y14.78%
OCF growth 5Y14.47%