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Rollins Inc ROL

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Stock XNYS Rating as of
$44.27 +1.40 (3.27%)
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As of Delayed Price Pre-Open: $44.27 0.00
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Company Report

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Rollins Earnings: Shares Remain Expensive Despite Impressive Organic Sales Growth in Early 2024

Grant Slade

Wide-moat Rollins’ got off to a strong start in the first quarter of 2024. First-quarter sales grew by about 14%, including 7.5% in organic growth. The pleasing first-quarter organic growth outcome likely points to further outperformance of Rollins’ pest control business relative to the broader US pest control market in early 2024. Inclusion of revenue from the Fox acquisition—which completed part way through 2023—largely accounted for the remainder of the strong top-line result. The group’s EBIT margin widened by 130 basis points to 18.3%, with Rollins benefiting from operating leverage as its revenue base increases and its service technician route density improves.

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Price vs Fair Value

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ROL is trading at a 25% premium.
Price
$42.46
Fair Value
$78.00
Uncertainty
Medium
1-Star Price
$13.70
5-Star Price
$98.30
Economic Moat
Tbm
Capital Allocation
Gxkqstddb

Bulls Say, Bears Say

Bulls

The recent uptick in capital allocated to tuck-in acquisitions is likely to continue, supporting economies of scale and boosting operating margin.

Bears

Competition is heating up for pest control M&A, putting upward pressure on deal multiples.

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News

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Trading Information

Previous Close Price
$42.87
Day Range
$43.18–44.75
52-Week Range
$32.19–47.45
Bid/Ask
$44.15 / $45.99
Market Cap
$21.45 Bil
Volume/Avg
3 / 2.1 Mil

Key Statistics

Price/Earnings (Normalized)
48.12
Price/Sales
6.83
Dividend Yield (Trailing)
1.31%
Dividend Yield (Forward)
1.41%
Total Yield
2.73%

Company Profile

Rollins is a global leader in route-based pest-control services, with operations spanning North, Central and South America, Europe, the Middle East and Africa and Australia. Its portfolio of pest-control brands includes the prominent Orkin brand, market leader in the U.S., where it boasts near national coverage, and in Canada. Residential pest and termite prevention dominates the services provided by Rollins, owing to the group’s ongoing focus on U.S. and Canadian markets.
Sector
Consumer Cyclical
Industry
Personal Services
Stock Style Box
Mid Growth
Total Number of Employees
19,031
Website
https://www.rollins.com

Competitors

Valuation

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Metric
ROL
CTAS
RTO
Price/Earnings (Normalized)
 48.1245.9419.85
Price/Book Value
 18.3615.942.52
Price/Sales
 6.837.311.93
Price/Cash Flow
 37.9133.9012.06
Price/Earnings
ROL
CTAS
RTO

Financial Strength

Metric
ROL
CTAS
RTO
Quick Ratio
 0.551.090.95
Current Ratio
 0.722.381.05
Interest Coverage
 23.5919.443.48
Quick Ratio
ROL
CTAS
RTO

Profitability

Metric
ROL
CTAS
RTO
Return on Assets (Normalized)
 18.15%18.30%5.14%
Return on Equity (Normalized)
 35.67%40.22%14.43%
Return on Invested Capital (Normalized)
 24.69%24.89%7.92%
Return on Assets
ROL
CTAS
RTO
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