DB:RLS

Stock Analysis Report

Executive Summary

Rollins, Inc., through its subsidiaries, provides pest and termite control services to residential and commercial customers.


Snowflake Analysis

Acceptable track record with moderate growth potential.


Similar Companies

Share Price & News

How has Rollins's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RLS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

RLS

-1.5%

DE Commercial Services

-2.4%

DE Market


1 Year Return

-1.3%

RLS

5.2%

DE Commercial Services

11.8%

DE Market

Return vs Industry: RLS underperformed the German Commercial Services industry which returned 9.1% over the past year.

Return vs Market: RLS underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

RLSIndustryMarket
7 Day1.5%-1.5%-2.4%
30 Day11.3%-4.1%-1.1%
90 Day-3.9%6.2%3.0%
1 Year0.02%-1.3%9.0%5.2%15.3%11.8%
3 Year54.5%48.5%5.6%-3.6%14.4%4.4%
5 Year177.2%157.5%6.8%-8.2%23.8%7.0%

Price Volatility Vs. Market

How volatile is Rollins's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Rollins undervalued compared to its fair value and its price relative to the market?

13.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RLS (€31.24) is trading below our estimate of fair value (€37.94)

Significantly Below Fair Value: RLS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RLS is poor value based on its PE Ratio (56.3x) compared to the Commercial Services industry average (32.4x).

PE vs Market: RLS is poor value based on its PE Ratio (56.3x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: RLS is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: RLS is overvalued based on its PB Ratio (14.2x) compared to the DE Commercial Services industry average (3.2x).


Next Steps

Future Growth

How is Rollins forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RLS's forecast earnings growth (18.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: RLS's earnings (18.5% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: RLS's earnings are forecast to grow, but not significantly.

Revenue vs Market: RLS's revenue (6.9% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: RLS's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RLS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rollins performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RLS has high quality earnings.

Growing Profit Margin: RLS's current net profit margins (10.4%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: RLS's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: RLS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RLS had negative earnings growth (-5.1%) over the past year, making it difficult to compare to the Commercial Services industry average (6.2%).


Return on Equity

High ROE: RLS's Return on Equity (25.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rollins's financial position?


Financial Position Analysis

Short Term Liabilities: RLS's short term assets ($324.2M) do not cover its short term liabilities ($410.9M).

Long Term Liabilities: RLS's short term assets ($324.2M) do not cover its long term liabilities ($547.0M).


Debt to Equity History and Analysis

Debt Level: RLS's debt to equity ratio (40.4%) is considered high.

Reducing Debt: Insufficient data to determine if RLS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RLS's debt is well covered by operating cash flow (93%).

Interest Coverage: RLS's interest payments on its debt are well covered by EBIT (75.5x coverage).


Balance Sheet

Inventory Level: RLS has a high level of physical assets or inventory.

Debt Coverage by Assets: RLS's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Rollins's current dividend yield, its reliability and sustainability?

1.28%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.6%industryaverage3.4%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: RLS's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: RLS's dividend (1.34%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: RLS's dividend payments have been volatile in the past 10 years.

Growing Dividend: RLS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.7%), RLS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RLS's dividends in 3 years are forecast to be covered by earnings (54.8% payout ratio).


Next Steps

Management

What is the CEO of Rollins's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

Gary Rollins (74yo)

18.5yrs

Tenure

US$4,872,075

Compensation

Mr. Gary W. Rollins has been the Chief Executive Officer at Rollins Inc., a subsidiary of Western Pest Services, Inc. since July 24, 2001. Mr. Rollins serves as the Chief Operating Officer of Rollins Holdi ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD4.87M) is about average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.0yrs

Average Tenure

58yo

Average Age

Experienced Management: RLS's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

14.0yrs

Average Tenure

78.5yo

Average Age

Experienced Board: RLS's board of directors are seasoned and experienced ( 14 years average tenure).


Insider Trading

Insider Buying: RLS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€15816 Jan 20
Paul Northen
EntityIndividual
Role
Chief Financial Officer
Senior VP
Shares5
Max Price€31.51
Sell€1,082,09718 Mar 19
John Wilson
EntityIndividual
Role
Member of the Board of Directors
President
Shares30,000
Max Price€36.07

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Gary Rollins (74yo)

    Vice Chairman & CEO

    • Tenure: 18.5yrs
    • Compensation: US$4.87m
  • Beth Chandler (55yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 7yrs
    • Compensation: US$796.45k
  • Lee Crump

    Chief Information Officer

    • Tenure: 10.6yrs
  • Freeman Elliott

    President of Orkin U.S.

    • Tenure: 3.5yrs
  • Eddie Northen (54yo)

    Senior VP

    • Tenure: 4.7yrs
    • Compensation: US$1.50m
  • Kevin Smith

    Chief Marketing Officer

    • John Wilson (61yo)

      President

      • Tenure: 7yrs
      • Compensation: US$2.88m
    • Julie Bimmerman

      VP of Finance & Investor Relations

      • Tenure: 1.8yrs
    • Steven Leavitt

      President of Rollins Emerging Opportunities Group

      • Jerry Gahlhoff

        President of Rollins Specialty Brands


        Board Members

        • R. Rollins (87yo)

          Chairman of the Board

          • Tenure: 28.3yrs
          • Compensation: US$4.29m
        • Gary Rollins (74yo)

          Vice Chairman & CEO

          • Tenure: 18.5yrs
          • Compensation: US$4.87m
        • Henry Tippie (92yo)

          Presiding Director

          • Compensation: US$136.00k
        • James Williams (85yo)

          Independent Director

          • Tenure: 42yrs
          • Compensation: US$84.00k
        • Bill Dismuke (83yo)

          Independent Director

          • Tenure: 36yrs
          • Compensation: US$75.00k
        • Thomas Lawley (72yo)

          Independent Director

          • Tenure: 14yrs
          • Compensation: US$62.50k
        • John Wilson (61yo)

          President

          • Tenure: 7yrs
          • Compensation: US$2.88m
        • Pam Rollins (62yo)

          Director

          • Tenure: 5yrs
          • Compensation: US$62.50k

        Company Information

        Rollins, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Rollins, Inc.
        • Ticker: RLS
        • Exchange: DB
        • Founded: 1948
        • Industry: Environmental and Facilities Services
        • Sector: Commercial Services
        • Market Cap: US$11.988b
        • Listing Market Cap: US$10.878b
        • Shares outstanding: 327.44m
        • Website: https://www.rollins.com

        Number of Employees


        Location

        • Rollins, Inc.
        • 2170 Piedmont Road, NE
        • Atlanta
        • Georgia
        • 30324
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        ROLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
        RLSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

        Biography

        Rollins, Inc., through its subsidiaries, provides pest and termite control services to residential and commercial customers. It offers protection against termite damage, rodents, and insects to homes and businesses, including hotels, food service establishments, food manufacturers, retailers, and transportation companies. The company also provides pest management and sanitation services and products to the food and commodity industries; consulting services on border protection related to Australia’s biosecurity program; and bird control and specialist services, as well as offers specialized services to mining, and oil and gas sectors. In addition, it offers mosquito control, wildlife services, lawn care, insulation, and HVAC services. It serves clients directly, as well as through franchisee operations in North America, Australia, Europe, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Africa, Canada, Australia, and Mexico. Rollins, Inc. was founded in 1948 and is headquartered in Atlanta, Georgia. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/27 22:00
        End of Day Share Price2020/01/27 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.