10Y annualized return is
excellent
at 17.5% per year
ROL has met or exceeded earnings expectations in
few
recent quarters (3/10)
Strong Return on Equity
Strong Gross Profit Margin
Positive Net Profit Margin
Manageable Debt Levels
High Interest Coverage Ratio
💰 Strong Revenue Growth
🏢 Strategic Investments in Talent
🔍 Diversified Service Offerings
📈 Robust M&A Pipeline
🚀 Positive Market Outlook
🏆 Investment-Grade Ratings
High Valuation Ratios
Moderate Operating Profit Margin
Low Liquidity Ratios
⚠️ Incremental Margin Pressures
🚧 Safety Claims Impact
🌦️ Weather-Related Concerns
📉 Softening in Commercial Growth
Rollins demonstrates a solid business model with strong revenue growth, strategic investments in talent, and a diversified service portfolio. However, challenges such as margin pressures and safety claims need to be managed. The company has promising future prospects with a robust M&A pipeline and favorable market conditions but faces potential headwinds from weather and commercial growth dynamics.
Analysis Date: February 13, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Rollins, Inc. is a company that helps people and businesses get rid of pests like bugs and rodents. They provide services to homes and workplaces, making sure places are safe and clean from unwanted animals. They also offer special protection against termites, which can damage buildings. Founded in 1948 and based in Atlanta, Georgia, Rollins works directly with customers and through other businesses that use their services.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Latest News
• Rollins, Inc. achieved annual savings of approximately $7.7 million, allowing the company to reinvest in strategic business initiatives and ...
Beyond analysts' top -and-bottom-line estimates for Rollins (ROL), evaluate projections for some of its key metrics to gain a better insight into how ...
ROL's first-quarter 2025 revenues are likely to have gained from improved segmental performance.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$37.08
Current Market Price: $52.29
IV/P Ratio: 0.71x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-41.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for ROL
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (54.22)
P/B ratio ≤ 1.5 (19.00)
Current ratio ≥ 2.0 (0.69x)
Long-term debt < Net current assets (-3.41x)
Margin of safety (-41.0%)
ROL does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The gross profit margin is at 63.03%, indicating that the company retains a significant portion of revenue as profit after accounting for the cost of goods sold.
With a net profit margin of 13.76%, ROL demonstrates its ability to convert revenue into actual profit.
The operating profit margin of 19.45% is decent but may indicate some inefficiencies compared to peers.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
36.43%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
63.03%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
13.76%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
The debt-to-equity ratio of 0.61 suggests that the company is not overly reliant on debt for financing, indicating a conservative capital structure.
An interest coverage ratio of 23.82 indicates that the company can comfortably meet its interest obligations, reflecting strong financial stability.
The current ratio of 0.69 indicates that the company may struggle to cover its short-term liabilities with its current assets.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.61x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.69x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Rollins achieved a milestone of $3.4 billion in revenue, with a full-year increase of 10.3% versus last year. The organic growth rate for the year was 7.9%, indicating strong demand across all major service offerings.
The company invested in hiring and developing talent, increasing their sales force by over 15% to meet demand. This focus on staffing and training is expected to yield long-term growth.
Rollins has a robust portfolio including pest control and termite services, with growth seen in all sectors. The company also emphasizes a multifaceted approach to customer acquisition, reducing reliance on any single channel.
While Rollins has seen healthy growth, investments in staff and resources have tempered incremental margins in the second half of the year, indicating a potential challenge in balancing growth and profitability.
The company is dealing with a long tail of safety claims that negatively impacted EBITDA margins. This situation suggests operational risks that could affect overall profitability if not managed effectively.
Rollins closed 44 tuck-in deals in 2024 and has a strong M&A pipeline, indicating the company's strategy to grow through acquisitions alongside organic growth.
The company expects organic growth in the range of 7% to 8% for 2025, supported by ongoing modernization efforts and a favorable pricing environment.
Recent investment-grade ratings from Fitch and S&P will provide Rollins with better access to capital at lower costs, enhancing their ability to pursue growth initiatives.
There are concerns about a muted spring selling season due to severe cold weather affecting pest populations, which could impact organic growth in the near term.
The commercial business showed some deceleration in growth despite easier comparisons, which raises questions about sustained momentum in that segment.