ROLLINS INC (ROL) Stock Fundamental Analysis
NYSE:ROL - New York Stock Exchange, Inc. - US7757111049 - Common Stock - Currency: USD
Overall ROL gets a fundamental rating of 7 out of 10. We evaluated ROL against 84 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
ROL had positive earnings in the past year.
In the past year ROL had a positive cash flow from operations.
In the past 5 years ROL has always been profitable.
Each year in the past 5 years ROL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 15.39%, ROL belongs to the best of the industry, outperforming 94.05% of the companies in the same industry.
ROL's Return On Equity of 33.89% is amongst the best of the industry. ROL outperforms 94.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.65%, ROL belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
ROL had an Average Return On Invested Capital over the past 3 years of 22.15%. This is significantly above the industry average of 11.08%.
| 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
With an excellent Profit Margin value of 13.70%, ROL belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
In the last couple of years the Profit Margin of ROL has grown nicely.
ROL has a Operating Margin of 19.14%. This is amongst the best in the industry. ROL outperforms 91.67% of its industry peers.
ROL's Operating Margin has improved in the last couple of years.
The Gross Margin of ROL (52.69%) is better than 90.48% 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
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 about the same amount of shares outstanding.
Compared to 5 years ago, ROL has less shares outstanding
ROL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.80 indicates that ROL is not in any danger for bankruptcy at the moment.
ROL has a better Altman-Z score (11.80) than 94.05% of its industry peers.
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.
The Debt to FCF ratio of ROL (0.86) is better than 84.52% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that ROL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.38, ROL is in the better half of the industry, outperforming 63.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 11.8 |
ROIC/WACC2.31
WACC8.93%
2.3 Liquidity
A Current Ratio of 0.68 indicates that ROL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.68, ROL is doing worse than 83.33% of the companies in the same industry.
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 worse Quick ratio (0.63) than 86.90% 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%.
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 Y13.43%
EPS Next 2Y12.78%
EPS Next 3Y12.45%
EPS Next 5Y10.16%
Revenue Next Year11.61%
Revenue Next 2Y10.13%
Revenue Next 3Y9.53%
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
With a Price/Earnings ratio of 55.71, ROL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ROL.
ROL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.85.
A Price/Forward Earnings ratio of 46.01 indicates a quite expensive valuation of ROL.
ROL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ROL to the average of the S&P500 Index (34.98), we can say ROL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.71 | ||
| Fwd PE | 46.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROL is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
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 | 44.46 | ||
| EV/EBITDA | 35.44 |
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 12.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.15
PEG (5Y)3.58
EPS Next 2Y12.78%
EPS Next 3Y12.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.15%, ROL has a reasonable but not impressive dividend return.
ROL's Dividend Yield is a higher than the industry average which is at 2.30.
With a Dividend Yield of 1.15, ROL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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 2Y12.78%
EPS Next 3Y12.45%
57.94
+0.85 (+1.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners53.77%
Inst Owner Change3%
Ins Owners4.72%
Ins Owner Change0%
Market Cap28.08B
Analysts75.56
Price Target59.82 (3.24%)
Short Float %2.38%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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)5.27%
PT rev (3m)8.14%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)0.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.71 | ||
| Fwd PE | 46.01 | ||
| P/S | 7.86 | ||
| P/FCF | 44.46 | ||
| P/OCF | 42.73 | ||
| P/B | 19.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.44 |
EPS(TTM)1.04
EY1.79%
EPS(NY)1.26
Fwd EY2.17%
FCF(TTM)1.3
FCFY2.25%
OCF(TTM)1.36
OCFY2.34%
SpS7.37
BVpS2.98
TBVpS-1.02
PEG (NY)4.15
PEG (5Y)3.58
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 | 11.8 |
F-Score6
WACC8.93%
ROIC/WACC2.31
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 Y13.43%
EPS Next 2Y12.78%
EPS Next 3Y12.45%
EPS Next 5Y10.16%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y11.81%
Revenue growth 5Y10.95%
Sales Q2Q%12.06%
Revenue Next Year11.61%
Revenue Next 2Y10.13%
Revenue Next 3Y9.53%
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%