ROLLINS INC (ROL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ROL - US7757111049 - Common Stock
60.02 USD
-0.41 (-0.68%)
60.02 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ROL. ROL was compared to 81 industry peers in the Commercial Services & Supplies industry. ROL gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, ROL is valued expensive at the moment. With these ratings, ROL could be worth investigating further 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.
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 16.02%, ROL belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
The Return On Equity of ROL (33.68%) is better than 95.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.18%, ROL belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ROL is significantly above the industry average of 10.33%.
| 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 93.83% of its industry peers.
In the last couple of years the Profit Margin of ROL has grown nicely.
Looking at the Operating Margin, with a value of 19.47%, ROL belongs to the top of the industry, outperforming 93.83% of the companies in the same industry.
ROL's Operating Margin has improved in the last couple of years.
ROL's Gross Margin of 52.86% is amongst the best of the industry. ROL outperforms 92.59% 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.
Compared to 1 year ago, ROL has about the same amount of shares outstanding.
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
ROL has an Altman-Z score of 12.48. This indicates that ROL is financially healthy and has little risk of bankruptcy at the moment.
ROL has a Altman-Z score of 12.48. This is amongst the best in the industry. ROL outperforms 93.83% of its industry peers.
ROL has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.72, ROL belongs to the best of the industry, outperforming 86.42% of the companies in the same industry.
ROL has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ROL (0.32) is better than 60.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | 12.48 |
ROIC/WACC2.43
WACC8.73%
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 Current ratio of 0.77. This is in the lower half of the industry: ROL underperforms 79.01% 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 76.54% of the companies in the same industry.
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 | 0.77 | ||
| Quick Ratio | 0.71 |
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.
The Earnings Per Share has been growing by 15.58% on average over the past years. This is quite good.
The Revenue has grown by 11.17% in the past year. This is quite good.
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
ROL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.77% yearly.
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 Y16.11%
EPS Next 2Y14.1%
EPS Next 3Y13.37%
EPS Next 5Y10.77%
Revenue Next Year11.81%
Revenue Next 2Y10.62%
Revenue Next 3Y9.98%
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
A Price/Earnings ratio of 54.56 indicates a quite expensive valuation of ROL.
ROL's Price/Earnings is on the same level as the industry average.
ROL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 46.57, ROL can be considered very expensive at the moment.
ROL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. ROL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.56 | ||
| Fwd PE | 46.57 |
4.2 Price Multiples
61.73% of the companies in the same industry are cheaper than ROL, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.78 | ||
| EV/EBITDA | 34.79 |
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 13.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.39
PEG (5Y)3.5
EPS Next 2Y14.1%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
ROL has a Yearly Dividend Yield of 1.20%.
ROL's Dividend Yield is a higher than the industry average which is at 0.89.
ROL's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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
61.92% of the earnings are spent on dividend by ROL. This is not a sustainable payout ratio.
The dividend of ROL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.92%
EPS Next 2Y14.1%
EPS Next 3Y13.37%
60.02
-0.41 (-0.68%)
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-11.36%
Market Cap28.88B
Revenue(TTM)3.68B
Net Income(TTM)515.94M
Analysts77
Price Target64.52 (7.5%)
Short Float %2.97%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend0.62
Dividend Growth(5Y)14.46%
DP61.92%
Div Incr Years22
Div Non Decr Years25
Ex-DateN/A
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)2.87%
PT rev (3m)4.87%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)1.56%
EPS NY rev (1m)0.71%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.56 | ||
| Fwd PE | 46.57 | ||
| P/S | 7.85 | ||
| P/FCF | 42.78 | ||
| P/OCF | 41.17 | ||
| P/B | 18.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.79 |
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)3.39
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
WACC8.73%
ROIC/WACC2.43
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 Y16.11%
EPS Next 2Y14.1%
EPS Next 3Y13.37%
EPS Next 5Y10.77%
Revenue 1Y (TTM)11.17%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%11.99%
Revenue Next Year11.81%
Revenue Next 2Y10.62%
Revenue Next 3Y9.98%
Revenue Next 5Y8.84%
EBIT growth 1Y10.99%
EBIT growth 3Y13.66%
EBIT growth 5Y15.67%
EBIT Next Year29.01%
EBIT Next 3Y16.88%
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.
Can you provide the valuation status for ROLLINS INC?
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.
What is the expected EPS growth for ROLLINS INC (ROL) stock?
The Earnings per Share (EPS) of ROLLINS INC (ROL) is expected to grow by 16.11% in the next year.
How sustainable is the dividend of ROLLINS INC (ROL) stock?
The dividend rating of ROLLINS INC (ROL) is 5 / 10 and the dividend payout ratio is 61.92%.