NYSE:ROL

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 19.29% per year

Risk Analysis

High level of non-cash earnings

Significant insider selling over the past 3 months



Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.


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: ROL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

ROL

0.9%

US Commercial Services

0.06%

US Market


1 Year Return

0.1%

ROL

22.8%

US Commercial Services

19.4%

US Market

Return vs Industry: ROL underperformed the US Commercial Services industry which returned 22.4% over the past year.

Return vs Market: ROL underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

ROLIndustryMarket
7 Day-0.7%0.9%0.06%
30 Day9.9%3.7%1.1%
90 Day10.1%9.5%8.9%
1 Year1.5%0.1%27.1%22.8%21.9%19.4%
3 Year66.3%60.3%65.4%54.5%48.9%39.3%
5 Year182.8%163.6%104.7%82.8%71.9%53.1%

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

Valuation

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

63.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROL ($39.82) is trading above our estimate of fair value ($35.81)

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 (64.1x) compared to the Commercial Services industry average (26.4x).

PE vs Market: ROL is poor value based on its PE Ratio (64.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ROL is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: ROL is overvalued based on its PB Ratio (16x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

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

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROL's forecast earnings growth (19.3% per year) is above the savings rate (1.7%).

Earnings vs Market: ROL's earnings (19.3% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: ROL's revenue (6.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ROL's revenue (6.1% 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


Next Steps

Past Performance

How has Rollins performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROL has a high level of non-cash earnings.

Growing Profit Margin: ROL's current net profit margins (10.1%) are lower than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: ROL's earnings have grown by 9.9% per year over the past 5 years.

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

Earnings vs Industry: ROL had negative earnings growth (-12.2%) over the past year, making it difficult to compare to the Commercial Services industry average (0.2%).


Return on Equity

High ROE: ROL's Return on Equity (24.9%) 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: ROL's short term assets ($307.0M) do not cover its short term liabilities ($408.7M).

Long Term Liabilities: ROL's short term assets ($307.0M) do not cover its long term liabilities ($514.9M).


Debt to Equity History and Analysis

Debt Level: ROL's debt to equity ratio (35.7%) 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 (104.1%).

Interest Coverage: ROL's interest payments on its debt are well covered by EBIT (45.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: ROL's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

1.35%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: ROL's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ROL's dividend (1.33%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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 reasonable payout ratio (67.6%), ROL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ROL's dividends in 3 years are forecast to be covered by earnings (62.8% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Gary Rollins (74yo)

18.6yrs

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 ($USD4.87M) is below average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Rollins
Vice Chairman & CEO18.6yrsUS$4.87m1.13% $147.4m
John Wilson
President7.1yrsUS$2.88m0.16% $20.6m
Paul Northen
Senior VP4.8yrsUS$1.50m0.034% $4.5m
Elizabeth Chandler
VP, General Counsel & Corporate Secretary7.1yrsUS$796.45k0.016% $2.0m
Lee Crump
Chief Information Officer10.7yrsno datano data
Julie Bimmerman
VP of Finance & Investor Relations1.9yrsno datano data
Kevin Smith
Chief Marketing Officer0yrsno datano data
Freeman Elliott
President of Orkin U.S.3.6yrsno datano data
Steven Leavitt
President of Rollins Emerging Opportunities Group0yrsno datano data
Jerry Gahlhoff
President of Rollins Specialty Brands0yrsno datano data

7.1yrs

Average Tenure

58yo

Average Age

Experienced Management: ROL's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Rollins
Vice Chairman & CEO18.6yrsUS$4.87m1.13% $147.4m
John Wilson
President7.1yrsUS$2.88m0.16% $20.6m
R. Rollins
Chairman of the Board28.3yrsUS$4.29m3.61% $470.5m
Henry Tippie
Presiding Director0yrsUS$136.00k1.03% $134.6m
James Williams
Independent Director42.1yrsUS$84.00k0.10% $13.6m
Bill Dismuke
Independent Director36.1yrsUS$75.00k0.0031% $408.1k
Thomas Lawley
Independent Director14.1yrsUS$62.50k0.0021% $268.6k
Pamela Rollins
Director5.1yrsUS$62.50k0.023% $3.0m

14.1yrs

Average Tenure

78.5yo

Average Age

Experienced Board: ROL's board of directors are seasoned and experienced ( 14.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ROL insiders have sold more shares than they have bought 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 company bio, 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$13.039b
  • 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
R1OL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

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 Analysis2020/02/19 00:19
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.