NYSE:ROL

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 10.62% per year

Earnings grew by 28.3% over the past year

Risk Analysis

No risks detected for ROL from our risk checks.


Snowflake Analysis

Outstanding track record with mediocre balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ROL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.7%

ROL

2.9%

US Commercial Services

-0.4%

US Market


1 Year Return

24.3%

ROL

13.1%

US Commercial Services

36.2%

US Market

Return vs Industry: ROL exceeded the US Commercial Services industry which returned 13.1% over the past year.

Return vs Market: ROL underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

ROLIndustryMarket
7 Day-0.7%2.9%-0.4%
30 Day-12.3%-1.4%-2.9%
90 Day-11.8%-0.009%5.0%
1 Year25.4%24.3%14.5%13.1%39.1%36.2%
3 Year44.8%40.2%39.7%30.3%48.4%39.0%
5 Year184.2%166.9%114.6%92.3%116.5%92.4%

Long-Term 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?

62.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROL ($32.94) is trading above our estimate of fair value ($22.47)

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 (62.1x) compared to the US Commercial Services industry average (32.3x).

PE vs Market: ROL is poor value based on its PE Ratio (62.1x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: ROL is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: ROL is overvalued based on its PB Ratio (17.2x) compared to the US Commercial Services industry average (2.4x).


Next Steps

Future Growth

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

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROL's forecast earnings growth (10.6% per year) is above the savings rate (2%).

Earnings vs Market: ROL's earnings (10.6% per year) are forecast to grow slower than the US market (19.2% per year).

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

Revenue vs Market: ROL's revenue (6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: ROL's revenue (6% 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?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROL has high quality earnings.

Growing Profit Margin: ROL's current net profit margins (12.1%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: ROL's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: ROL's earnings growth over the past year (28.3%) exceeds its 5-year average (9.2% per year).

Earnings vs Industry: ROL earnings growth over the past year (28.3%) exceeded the Commercial Services industry -10.4%.


Return on Equity

High ROE: ROL's Return on Equity (27.7%) is considered high.


Next Steps

Financial Health

How is Rollins's financial position?


Financial Position Analysis

Short Term Liabilities: ROL's short term assets ($314.8M) do not cover its short term liabilities ($472.5M).

Long Term Liabilities: ROL's short term assets ($314.8M) do not cover its long term liabilities ($432.0M).


Debt to Equity History and Analysis

Debt Level: ROL's debt to equity ratio (21.6%) 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 (214.7%).

Interest Coverage: ROL's interest payments on its debt are well covered by EBIT (72.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ROL's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: ROL's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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 (45%), ROL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Gary Rollins (75 yo)

19.67yrs

Tenure

US$4,780,854

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 ($USD4.78M) is below average for companies of similar size in the US market ($USD10.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Rollins
Chairman & CEO19.67yrsUS$4.78m1.14%
$ 185.2m
Paul Northen
Senior VP5.83yrsUS$1.45m0.036%
$ 5.8m
Elizabeth Chandler
VP, General Counsel & Corporate Secretary8.17yrsUS$831.17k0.019%
$ 3.1m
Jerry Gahlhoff
President & COO0.58yrno data0.030%
$ 4.8m
Lee Crump
Chief Information Officer11.75yrsno datano data
Julie Bimmerman
VP of Finance & Investor Relations3yrsno datano data
Kevin Smith
Chief Marketing Officerno datano datano data
Freeman Elliott
President of Orkin U.S.4.67yrsno datano data
Steven Leavitt
President of Rollins Emerging Markets Groupno datano datano data
Thomas Luczynski
Assistant Corporate Secretary3.17yrsUS$674.58kno data

5.3yrs

Average Tenure

56yo

Average Age

Experienced Management: ROL's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Rollins
Chairman & CEO19.67yrsUS$4.78m1.14%
$ 185.2m
Jerry Nix
Independent Director0.42yrno datano data
Harry Cynkus
Director0.58yrUS$279.35k0.010%
$ 1.7m
Henry Tippie
Lead Independent Directorno dataUS$146.50k1.55%
$ 250.5m
Thomas Lawley
Independent Director15.17yrsUS$72.50kno data
John Wilson
Vice Chairman0.58yrUS$3.19m0.16%
$ 26.7m
Pamela Rollins
Director6.17yrsUS$72.50k0.12%
$ 19.1m
Susan Bell
Independent Director0.17yrno data0.000030%
$ 4.9k
Patrick Gunning
Independent Director0.25yrno datano data

0.6yrs

Average Tenure

73yo

Average Age

Experienced Board: ROL's board of directors are not considered experienced ( 0.6 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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$16.211b
  • Shares outstanding: 492.13m
  • 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 b...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 23:22
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.