ROLLINS INC (ROL) Stock Fundamental Analysis
USA - NYSE:ROL - US7757111049 - Common Stock
57.61 USD
-0.18 (-0.31%)
57.61 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. Both the health and profitability get an excellent rating, making ROL a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, ROL is valued expensive at the moment. These ratings could make ROL a good candidate 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.
In the past 5 years ROL has always been profitable.
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 15.39%, ROL belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 33.89%, ROL belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
The Return On Invested Capital of ROL (20.65%) is better than 95.12% 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 10.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.39% | ||
| ROE | 33.89% | ||
| ROIC | 20.65% |
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
Looking at the Profit Margin, with a value of 13.70%, ROL belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
In the last couple of years the Profit Margin of ROL has grown nicely.
The Operating Margin of ROL (19.14%) is better than 93.90% of its industry peers.
ROL's Operating Margin has improved in the last couple of years.
ROL's Gross Margin of 52.69% is amongst the best of 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 | 19.14% | ||
| PM (TTM) | 13.7% | ||
| GM | 52.69% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ROL 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.
ROL has a better debt/assets ratio than last year.
2.2 Solvency
ROL has an Altman-Z score of 11.78. This indicates that ROL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.78, ROL belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
ROL has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.86, ROL belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
ROL has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
ROL's Debt to Equity ratio of 0.38 is fine compared to the rest of the industry. ROL outperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 11.78 |
ROIC/WACC2.37
WACC8.7%
2.3 Liquidity
A Current Ratio of 0.68 indicates that ROL may have some problems paying its short term obligations.
The Current ratio of ROL (0.68) is worse than 84.15% of its industry peers.
A Quick Ratio of 0.63 indicates that ROL may have some problems paying its short term obligations.
The Quick ratio of ROL (0.63) is worse than 86.59% of its industry peers.
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 | 0.68 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
ROL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.40%, 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 15.58% on average per year.
Looking at the last year, ROL shows a quite strong growth in Revenue. The Revenue has grown by 10.26% in the last year.
Measured over the past years, ROL shows a quite strong growth in Revenue. The Revenue has been growing by 10.95% on average per year.
EPS 1Y (TTM)13.4%
EPS 3Y13.9%
EPS 5Y15.58%
EPS Q2Q%20.69%
Revenue 1Y (TTM)10.26%
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 10.16% on average per year.
ROL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.71% yearly.
EPS Next Y13.72%
EPS Next 2Y12.79%
EPS Next 3Y12.29%
EPS Next 5Y10.16%
Revenue Next Year11.61%
Revenue Next 2Y10.24%
Revenue Next 3Y9.52%
Revenue Next 5Y8.71%
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
ROL is valuated quite expensively with a Price/Earnings ratio of 52.37.
ROL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.10. ROL is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 45.74, the valuation of ROL can be described as expensive.
ROL's Price/Forward Earnings is on the same level as the industry average.
ROL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.37 | ||
| Fwd PE | 45.74 |
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 62.20% 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 | 44.21 | ||
| EV/EBITDA | 35.35 |
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 12.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.82
PEG (5Y)3.36
EPS Next 2Y12.79%
EPS Next 3Y12.29%
5. Dividend
5.1 Amount
ROL has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.51, ROL pays a better dividend. On top of this ROL pays more dividend than 80.49% of the companies listed in the same industry.
With a Dividend Yield of 1.26, ROL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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 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
ROL pays out 63.80% 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.
DP63.8%
EPS Next 2Y12.79%
EPS Next 3Y12.29%
57.61
-0.18 (-0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners55.1%
Inst Owner Change0.11%
Ins Owners4.71%
Ins Owner Change-0.07%
Market Cap27.92B
Revenue(TTM)3.39B
Net Income(TTM)489.32M
Analysts75.79
Price Target61.52 (6.79%)
Short Float %2.89%
Short Ratio4.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend0.62
Dividend Growth(5Y)14.46%
DP63.8%
Div Incr Years22
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.74%
Min EPS beat(2)-1.71%
Max EPS beat(2)0.23%
EPS beat(4)1
Avg EPS beat(4)-2%
Min EPS beat(4)-4.7%
Max EPS beat(4)0.23%
EPS beat(8)3
Avg EPS beat(8)0.21%
EPS beat(12)6
Avg EPS beat(12)0.86%
EPS beat(16)7
Avg EPS beat(16)-0.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.11%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-0.43%
Max Revenue beat(4)0.77%
Revenue beat(8)4
Avg Revenue beat(8)-0.12%
Revenue beat(12)7
Avg Revenue beat(12)0.19%
Revenue beat(16)10
Avg Revenue beat(16)0.51%
PT rev (1m)0%
PT rev (3m)5.3%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.37 | ||
| Fwd PE | 45.74 | ||
| P/S | 7.82 | ||
| P/FCF | 44.21 | ||
| P/OCF | 42.49 | ||
| P/B | 19.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.35 |
EPS(TTM)1.1
EY1.91%
EPS(NY)1.26
Fwd EY2.19%
FCF(TTM)1.3
FCFY2.26%
OCF(TTM)1.36
OCFY2.35%
SpS7.37
BVpS2.98
TBVpS-1.02
PEG (NY)3.82
PEG (5Y)3.36
Graham Number8.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.39% | ||
| ROE | 33.89% | ||
| ROCE | 28.57% | ||
| ROIC | 20.65% | ||
| ROICexc | 21.74% | ||
| ROICexgc | 129.83% | ||
| OM | 19.14% | ||
| PM (TTM) | 13.7% | ||
| GM | 52.69% | ||
| FCFM | 17.69% |
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 Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 21.45% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 33.81 | ||
| Cash Conversion | 81.88% | ||
| Profit Quality | 129.07% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 11.78 |
F-Score6
WACC8.7%
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)13.4%
EPS 3Y13.9%
EPS 5Y15.58%
EPS Q2Q%20.69%
EPS Next Y13.72%
EPS Next 2Y12.79%
EPS Next 3Y12.29%
EPS Next 5Y10.16%
Revenue 1Y (TTM)10.26%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%11.99%
Revenue Next Year11.61%
Revenue Next 2Y10.24%
Revenue Next 3Y9.52%
Revenue Next 5Y8.71%
EBIT growth 1Y7.42%
EBIT growth 3Y13.66%
EBIT growth 5Y15.67%
EBIT Next Year34.12%
EBIT Next 3Y18.33%
EBIT Next 5Y12.82%
FCF growth 1Y34.33%
FCF growth 3Y15.69%
FCF growth 5Y15.51%
OCF growth 1Y31.61%
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 13.72% in the next year.