ROLLINS INC (ROL)
US7757111049 - Common Stock
ROL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 85 industry peers in the Commercial Services & Supplies industry. ROL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ROL is quite expensive at the moment. It does show a decent growth rate. 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.
ROL had a positive operating cash flow in the past year.
Each year in the past 5 years ROL has been profitable.
ROL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROL has a better Return On Assets (16.59%) than 97.59% of its industry peers.
ROL has a Return On Equity of 37.78%. This is amongst the best in the industry. ROL outperforms 97.59% of its industry peers.
ROL has a better Return On Invested Capital (21.80%) than 95.18% of its industry peers.
ROL had an Average Return On Invested Capital over the past 3 years of 21.89%. This is significantly above the industry average of 10.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.59% | ||
| ROE | 37.78% | ||
| ROIC | 21.8% |
ROA(3y)17.26%
ROA(5y)15.51%
ROE(3y)32.94%
ROE(5y)30.29%
ROIC(3y)21.89%
ROIC(5y)20.55%
1.3 Margins
The Profit Margin of ROL (13.94%) is better than 91.57% 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 19.24%, ROL belongs to the top of the industry, outperforming 92.77% 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 52.31%, ROL belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
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 | 19.24% | ||
| PM (TTM) | 13.94% | ||
| GM | 52.31% |
OM growth 3Y4.62%
OM growth 5Y2.41%
PM growth 3Y5.46%
PM growth 5Y2.16%
GM growth 3Y0.45%
GM growth 5Y0.5%
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.
Compared to 1 year ago, ROL has less shares outstanding
ROL has less shares outstanding than it did 5 years ago.
ROL has a worse debt/assets ratio than last year.
2.2 Solvency
ROL has an Altman-Z score of 11.17. This indicates that ROL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.17, ROL belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
ROL has a debt to FCF ratio of 0.98. This is a very positive value and a sign of high solvency as it would only need 0.98 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.98, ROL belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
ROL has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
ROL has a better Debt to Equity ratio (0.44) than 61.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 11.17 |
ROIC/WACC2.4
WACC9.09%
2.3 Liquidity
A Current Ratio of 0.72 indicates that ROL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.72, ROL is doing worse than 86.75% of the companies in the same industry.
ROL has a Quick Ratio of 0.72. 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 0.66 is on the low side compared to the rest of the industry. ROL is outperformed by 86.75% 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 | 0.72 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.48% over the past year.
ROL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.61% yearly.
ROL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.49%.
The Revenue has been growing by 11.03% on average over the past years. This is quite good.
EPS 1Y (TTM)19.48%
EPS 3Y18.32%
EPS 5Y13.61%
EPS growth Q2Q11.11%
Revenue 1Y (TTM)14.49%
Revenue growth 3Y12.45%
Revenue growth 5Y11.03%
Revenue growth Q2Q13.73%
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 12.42% yearly.
ROL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.44% yearly.
EPS Next Y12.63%
EPS Next 2Y11.63%
EPS Next 3Y11.66%
EPS Next 5Y12.42%
Revenue Next Year9.12%
Revenue Next 2Y8.43%
Revenue Next 3Y8.21%
Revenue Next 5Y8.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
ROL is valuated quite expensively with a Price/Earnings ratio of 50.80.
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 27.73.
A Price/Forward Earnings ratio of 41.68 indicates a quite expensive valuation of ROL.
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 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.8 | ||
| Fwd PE | 41.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROL is valued a bit more expensive than 67.47% 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 | 43.27 | ||
| EV/EBITDA | 31.87 |
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.
ROL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.02
PEG (5Y)3.73
EPS Next 2Y11.63%
EPS Next 3Y11.66%
5. Dividend
5.1 Amount
ROL has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
ROL's Dividend Yield is a higher than the industry average which is at 2.37.
Compared to an average S&P500 Dividend Yield of 2.41, ROL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of ROL is nicely growing with an annual growth rate of 11.71%!
ROL has been paying a dividend for at least 10 years, so it has a reliable track record.
As ROL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.71%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
ROL pays out 61.86% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ROL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP61.86%
EPS Next 2Y11.63%
EPS Next 3Y11.66%
ROLLINS INC
NYSE:ROL (5/6/2024, 9:36:07 AM)
46.74
+0.62 (+1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.8 | ||
| Fwd PE | 41.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.02
PEG (5Y)3.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.59% | ||
| ROE | 37.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.24% | ||
| PM (TTM) | 13.94% | ||
| GM | 52.31% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.48%
EPS 3Y18.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.49%
Revenue growth 3Y12.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y