ROLLINS INC (ROL) Stock Fundamental Analysis
NYSE:ROL - US7757111049 - Common Stock
57.68 USD
+1.31 (+2.32%)
We assign a fundamental rating of 7 out of 10 to ROL. ROL was compared to 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. While showing a medium growth rate, ROL is valued expensive at the moment. 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.
Each year in the past 5 years ROL had a positive operating cash flow.
1.2 Ratios
ROL has a Return On Assets of 15.39%. This is amongst the best in the industry. ROL outperforms 95.24% of its industry peers.
ROL has a Return On Equity of 33.89%. This is amongst the best in the industry. ROL outperforms 94.05% of its industry peers.
With an excellent Return On Invested Capital value of 20.65%, ROL belongs to the best of the industry, outperforming 95.24% 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 10.65%.
| 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 has a Profit Margin of 13.70%. This is amongst the best in the industry. ROL outperforms 88.10% of its industry peers.
ROL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.14%, ROL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of ROL has grown nicely.
With an excellent Gross Margin value of 52.69%, ROL belongs to the best of the industry, outperforming 91.67% 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 | 19.14% | ||
| 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.
The debt/assets ratio for ROL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.54 indicates that ROL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.54, ROL belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
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's Debt to FCF ratio of 0.86 is amongst the best of the industry. ROL outperforms 84.52% 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 | 11.54 |
ROIC/WACC2.38
WACC8.67%
2.3 Liquidity
ROL has a Current Ratio of 0.68. This is a bad value and indicates that ROL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ROL (0.68) is worse than 85.71% of its industry peers.
ROL has a Quick Ratio of 0.68. 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 Quick ratio of 0.63. This is amonst the worse of the industry: ROL underperforms 88.10% 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 | 0.68 | ||
| 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 8.33%, which is quite good.
The Earnings Per Share has been growing by 15.58% on average over the past years. This is quite good.
Looking at the last year, ROL shows a quite strong growth in Revenue. The Revenue has grown by 10.38% in the last year.
The Revenue has been growing by 10.95% on average over the past years. This is quite good.
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
ROL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.16% yearly.
Based on estimates for the next years, ROL will show a quite strong growth in Revenue. The Revenue will grow by 8.71% on average per year.
EPS Next Y14.39%
EPS Next 2Y13.06%
EPS Next 3Y12.66%
EPS Next 5Y10.16%
Revenue Next Year11.7%
Revenue Next 2Y10.16%
Revenue Next 3Y9.55%
Revenue Next 5Y8.71%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 55.46 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 27.03.
A Price/Forward Earnings ratio of 45.58 indicates a quite expensive valuation of ROL.
The rest of the industry has a similar Price/Forward Earnings ratio as ROL.
When comparing the Price/Forward Earnings ratio of ROL to the average of the S&P500 Index (22.54), we can say ROL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.46 | ||
| Fwd PE | 45.58 |
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 64.29% 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 | 44.26 | ||
| EV/EBITDA | 34.49 |
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 12.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.85
PEG (5Y)3.56
EPS Next 2Y13.06%
EPS Next 3Y12.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, ROL has a reasonable but not impressive dividend return.
ROL's Dividend Yield is a higher than the industry average which is at 2.26.
With a Dividend Yield of 1.16, ROL pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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 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
63.80% 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.
DP63.8%
EPS Next 2Y13.06%
EPS Next 3Y12.66%
NYSE:ROL (9/11/2025, 11:34:59 AM)
57.68
+1.31 (+2.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners53.77%
Inst Owner Change2.98%
Ins Owners4.72%
Ins Owner Change-0.06%
Market Cap27.95B
Analysts75.56
Price Target61.52 (6.66%)
Short Float %2.75%
Short Ratio4.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)5.3%
PT rev (3m)10.45%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)1.04%
EPS NY rev (1m)0.85%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.46 | ||
| Fwd PE | 45.58 | ||
| P/S | 7.83 | ||
| P/FCF | 44.26 | ||
| P/OCF | 42.54 | ||
| P/B | 19.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.49 |
EPS(TTM)1.04
EY1.8%
EPS(NY)1.27
Fwd EY2.19%
FCF(TTM)1.3
FCFY2.26%
OCF(TTM)1.36
OCFY2.35%
SpS7.37
BVpS2.98
TBVpS-1.02
PEG (NY)3.85
PEG (5Y)3.56
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 | 11.54 |
F-Score6
WACC8.67%
ROIC/WACC2.38
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 Year11.7%
Revenue Next 2Y10.16%
Revenue Next 3Y9.55%
Revenue Next 5Y8.71%
EBIT growth 1Y7.42%
EBIT growth 3Y13.66%
EBIT growth 5Y15.67%
EBIT Next Year27.65%
EBIT Next 3Y16.49%
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%