Rollins, Inc.
Rollins, Inc. Fundamental Analysis
Rollins, Inc. (ROL) shows moderate financial fundamentals with a PE ratio of 55.14, profit margin of 14.00%, and ROE of 36.92%. The company generates $3.7B in annual revenue with strong year-over-year growth of 10.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ROL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentROL demonstrates superior asset utilization.
Valuation Score
WeakROL trades at a premium to fair value.
Growth Score
ModerateROL shows steady but slowing expansion.
Financial Health Score
ModerateROL shows balanced financial health with some risks.
Profitability Score
ModerateROL maintains healthy but balanced margins.
Key Financial Metrics
Is ROL Expensive or Cheap?
P/E Ratio
ROL trades at 55.14 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ROL's PEG of 29.50 indicates potential overvaluation.
Price to Book
The market values Rollins, Inc. at 21.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 32.48 times EBITDA. This signals the market has high growth expectations.
How Well Does ROL Make Money?
Net Profit Margin
For every $100 in sales, Rollins, Inc. keeps $14.00 as profit after all expenses.
Operating Margin
Core operations generate 19.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $36.92 in profit for every $100 of shareholder equity.
ROA
Rollins, Inc. generates $16.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rollins, Inc. produces operating cash flow of $675.80M, showing steady but balanced cash generation.
Free Cash Flow
Rollins, Inc. generates strong free cash flow of $647.80M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.35 in free cash annually.
FCF Yield
ROL converts 2.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
55.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
29.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
21.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.37
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.31
vs 25 benchmark
How ROL Stacks Against Its Sector Peers
| Metric | ROL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 55.14 | 24.93 | Worse (Expensive) |
| ROE | 36.92% | 1149.00% | Weak |
| Net Margin | 14.00% | 750.00% | Weak |
| Debt/Equity | 0.97 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.60 | 9.21 | Weak Liquidity |
| ROA | 16.77% | 1268.00% | Weak |
ROL outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rollins, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.55%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
132.65%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
99.36%
Industry Style: Cyclical, Growth, Discretionary
High Growth