ROL

RollinsNYSE:ROL Stock Report

Market Cap

US$18.3b

7D

-4.6%

1Y

6.3%

Updated

19 Sep, 2021

Data

Company Financials +
ROL fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance6/6
Financial Health4/6
Dividends3/6

ROL Overview

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

Rewards

Earnings are forecast to grow 8.29% per year

Earnings grew by 56.3% over the past year

Risk Analysis

ROL passed our risk checks.

Rollins Competitors

Tetra Tech

NasdaqGS:TTEK

US$7.8b

Ecolab

NYSE:ECL

US$62.5b

Cintas

NasdaqGS:CTAS

US$40.9b

Xylem

NYSE:XYL

US$23.7b

Price History & Performance

Summary of all time highs, changes and price drops for Rollins
Historical stock prices
Current Share PriceUS$37.14
52 Week HighUS$31.44
52 Week LowUS$43.00
Beta0.53
1 Month Change-5.57%
3 Month Change10.11%
1 Year Change6.28%
3 Year Change33.68%
5 Year Change187.07%
Change since IPO5,151.64%

Recent News & Updates

Aug 22
Is Rollins (NYSE:ROL) Using Too Much Debt?

Is Rollins (NYSE:ROL) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 02

Rollins: Strong Q2 But Questionable Valuation

On July 28, ROL presented its Q2 results, with revenue and EPS coming above the consensus estimates, thus bringing the count of consistent quarterly revenue surprises to 9. Total Q2 revenues were up by over 15% to $638.2 million, largely driven by growth in two lines that account for most of the sales: commercial and residential. 2021 has been a challenging year for the company, as the share price has been riding a bumpy rollercoaster. ROL is exhibiting characteristics of a growth stock trading at a huge premium both to the industry and to the peer. But is it worth overpaying? My answer is no. Last year, I said the stock might be considered if EV/EBITDA dips below 30x, and I still think it might be worth considering with the multiple in the twenties. But now, all things considered, ROL is a Hold.

Jul 31
Rollins (NYSE:ROL) Is Due To Pay A Dividend Of US$0.08

Rollins (NYSE:ROL) Is Due To Pay A Dividend Of US$0.08

Rollins, Inc. ( NYSE:ROL ) has announced that it will pay a dividend of US$0.08 per share on the 10th of September...

Jul 06
Does Rollins (NYSE:ROL) Deserve A Spot On Your Watchlist?

Does Rollins (NYSE:ROL) Deserve A Spot On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

ROLUS Commercial ServicesUS Market
7D-4.6%-1.5%-0.6%
1Y6.3%26.5%33.8%

Return vs Industry: ROL underperformed the US Commercial Services industry which returned 26.5% over the past year.

Return vs Market: ROL underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is ROL's price volatile compared to industry and market?
ROL volatility
ROL Beta0.53
Industry Beta1.04
Market Beta1

Stable Share Price: ROL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ROL's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194815,616Gary Rollinshttps://www.rollins.com

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.

Valuation

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

54.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROL ($37.14) is trading above our estimate of fair value ($26.99)

Significantly Below Fair Value: ROL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ROL is poor value based on its PE Ratio (54.8x) compared to the US Commercial Services industry average (32.2x).

PE vs Market: ROL is poor value based on its PE Ratio (54.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ROL is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: ROL is overvalued based on its PB Ratio (17.4x) compared to the US Commercial Services industry average (2.7x).


Future Growth

How is Rollins forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROL's forecast earnings growth (8.3% per year) is above the savings rate (2%).

Earnings vs Market: ROL's earnings (8.3% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: ROL's revenue (6.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: ROL's revenue (6.7% 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 ROL's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Rollins performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROL has high quality earnings.

Growing Profit Margin: ROL's current net profit margins (14.5%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: ROL's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: ROL's earnings growth over the past year (56.3%) exceeds its 5-year average (11.9% per year).

Earnings vs Industry: ROL earnings growth over the past year (56.3%) exceeded the Commercial Services industry 30.4%.


Return on Equity

High ROE: ROL's Return on Equity (31.8%) is considered high.


Financial Health

How is Rollins's financial position?


Financial Position Analysis

Short Term Liabilities: ROL's short term assets ($376.3M) do not cover its short term liabilities ($518.7M).

Long Term Liabilities: ROL's short term assets ($376.3M) exceed its long term liabilities ($352.3M).


Debt to Equity History and Analysis

Debt Level: ROL's debt to equity ratio (8.4%) is considered satisfactory.

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

Debt Coverage: ROL's debt is well covered by operating cash flow (477%).

Interest Coverage: ROL's interest payments on its debt are well covered by EBIT (166.6x coverage).


Balance Sheet


Dividend

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

1.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ROL's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: ROL's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.6%), ROL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ROL's dividends in 3 years are forecast to be well covered by earnings (49.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Gary Rollins (76 yo)

20.17yrs

Tenure

US$5,475,195

Compensation

Mr. Gary W. Rollins has been Chairman at Rollins, Inc. since August 2020. Mr. Rollins has been the Chief Executive Officer at Rollins Inc., a subsidiary of Western Pest Services, Inc. since July 24, 2001....


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD5.48M) is below average for companies of similar size in the US market ($USD11.33M).

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


Leadership Team

Experienced Management: ROL's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: ROL's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Rollins, Inc.
  • Ticker: ROL
  • Exchange: NYSE
  • Founded: 1948
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$18.276b
  • Shares outstanding: 492.08m
  • Website: https://www.rollins.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.