ROLLINS INC (ROL) Stock Fundamental Analysis
USA - NYSE:ROL - US7757111049 - Common Stock
58.13 USD
-0.61 (-1.04%)
58.13 USD
0 (0%)
ROL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 84 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
In the past year ROL was profitable.
In the past year ROL had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 15.39%, ROL belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
With an excellent Return On Equity value of 33.89%, ROL belongs to the best of the industry, outperforming 94.05% of the companies in the same industry.
ROL's Return On Invested Capital of 20.65% is amongst the best of the industry. ROL outperforms 95.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ROL is significantly above the industry average of 10.60%.
| 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
ROL's Profit Margin of 13.70% is amongst the best of the industry. ROL outperforms 88.10% of its industry peers.
In the last couple of years the Profit Margin of ROL has grown nicely.
ROL's Operating Margin of 19.14% is amongst the best of the industry. ROL outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of ROL has grown nicely.
ROL's Gross Margin of 52.69% is amongst the best of the industry. ROL outperforms 91.67% of its industry peers.
ROL's Gross Margin has been stable in the last couple of years.
| 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.
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.
ROL has a better debt/assets ratio than last year.
2.2 Solvency
ROL has an Altman-Z score of 11.94. This indicates that ROL is financially healthy and has little risk of bankruptcy at the moment.
ROL has a Altman-Z score of 11.94. This is amongst the best in the industry. ROL outperforms 92.86% of its industry peers.
The Debt to FCF ratio of ROL is 0.86, which is an excellent value as it means it would take ROL, only 0.86 years of fcf income to pay off all of its debts.
ROL has a Debt to FCF ratio of 0.86. This is amongst the best in the industry. ROL outperforms 85.71% of its industry peers.
ROL has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
ROL has a better Debt to Equity ratio (0.38) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 11.94 |
ROIC/WACC2.36
WACC8.74%
2.3 Liquidity
A Current Ratio of 0.68 indicates that ROL may have some problems paying its short term obligations.
ROL has a Current ratio of 0.68. This is amonst the worse of the industry: ROL underperforms 85.71% 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 88.10% 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
The Earnings Per Share has grown by an nice 8.33% 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 10.38%.
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)8.33%
EPS 3Y13.9%
EPS 5Y15.58%
EPS Q2Q%11.11%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%12.06%
3.2 Future
The Earnings Per Share is expected to grow by 10.16% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.71% on average over the next years. This is quite good.
EPS Next Y14.39%
EPS Next 2Y13.06%
EPS Next 3Y12.66%
EPS Next 5Y10.16%
Revenue Next Year11.67%
Revenue Next 2Y10.14%
Revenue Next 3Y9.54%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 55.89 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.
When comparing the Price/Earnings ratio of ROL to the average of the S&P500 Index (27.79), we can say ROL is valued expensively.
Based on the Price/Forward Earnings ratio of 45.93, the valuation of ROL can be described as expensive.
ROL's Price/Forward Earnings ratio is in line with the industry average.
ROL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.89 | ||
| Fwd PE | 45.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROL is valued a bit more expensive than 64.29% of the companies in the same industry.
ROL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.61 | ||
| EV/EBITDA | 35.92 |
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.
A more expensive valuation may be justified as ROL's earnings are expected to grow with 12.66% in the coming years.
PEG (NY)3.88
PEG (5Y)3.59
EPS Next 2Y13.06%
EPS Next 3Y12.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, ROL has a reasonable but not impressive dividend return.
ROL's Dividend Yield is a higher than the industry average which is at 2.34.
With a Dividend Yield of 1.17, ROL pays less dividend than the S&P500 average, which is at 2.41.
| 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 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
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 2Y13.06%
EPS Next 3Y12.66%
58.13
-0.61 (-1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners55.1%
Inst Owner Change2.98%
Ins Owners4.71%
Ins Owner Change-0.06%
Market Cap28.17B
Analysts75.56
Price Target61.52 (5.83%)
Short Float %2.95%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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)2.85%
PT rev (3m)8.27%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.89 | ||
| Fwd PE | 45.93 | ||
| P/S | 7.89 | ||
| P/FCF | 44.61 | ||
| P/OCF | 42.87 | ||
| P/B | 19.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.92 |
EPS(TTM)1.04
EY1.79%
EPS(NY)1.27
Fwd EY2.18%
FCF(TTM)1.3
FCFY2.24%
OCF(TTM)1.36
OCFY2.33%
SpS7.37
BVpS2.98
TBVpS-1.02
PEG (NY)3.88
PEG (5Y)3.59
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%
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-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 | 11.94 |
F-Score6
WACC8.74%
ROIC/WACC2.36
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)8.33%
EPS 3Y13.9%
EPS 5Y15.58%
EPS Q2Q%11.11%
EPS Next Y14.39%
EPS Next 2Y13.06%
EPS Next 3Y12.66%
EPS Next 5Y10.16%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%12.06%
Revenue Next Year11.67%
Revenue Next 2Y10.14%
Revenue Next 3Y9.54%
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%