Rollins (ROL) AI Stock Analysis

• Market Cap: $28.89B
• Dividend Yield: 1.18%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 56.0
• Beta (1Y): 0.51
• Revenue Growth: 11.17%
• EPS Growth: 9.81%
• Country: US
• Employees: 20,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.34
• Shares Outstanding: 484,628,800
• 10 Day Avg. Volume: 2,557,424
• 30 Day Avg. Volume: 1,989,442
• PEG Ratio: 6.12
• Price to Book (P/B): 16.87
• Price to Sales (P/S): 6.62
• P/FCF Ratio: 38.69
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 7.95
• Enterprise Value/Gross Profit: 15.03
• Enterprise Value/Ebitda: 34.79
• 1Y Price Target: $61.63
• Price Target Upside: 3.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.11
• Revenue Forecast (FY): $3.78B

• Rating: 79 Outperform
• Price Target: $66.00 ▲(10.61% Upside)

Rollins' strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's robust revenue growth, successful acquisition integration, and improved margins highlight its operational strength. However, the high P/E ratio suggests a premium valuation, and technical indicators suggest a cautious outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates Rollins' effective market penetration and customer retention, supporting long-term business expansion and stability.

Cash Flow Strength

Robust cash flow growth enhances Rollins' ability to reinvest in the business, reduce debt, and return capital to shareholders, ensuring financial resilience.

Successful Acquisition

The successful acquisition of Saela strengthens Rollins' market position and operational efficiency, driving sustainable growth and competitive advantage.

Negative Factors

Margin Pressure

Margin pressures from insurance claims could impact profitability, necessitating cost management strategies to maintain financial performance.

Increasing Debt Levels

Rising debt levels may limit Rollins' financial flexibility, impacting its ability to invest in growth opportunities and manage economic downturns.

SG&A Cost Increases

Higher SG&A costs can erode profit margins, requiring Rollins to optimize its cost structure to sustain long-term profitability.

Rollins Business Overview & Revenue Model

Company Description

Rollins, Inc. (NYSE: ROL) is a premier global provider of pest control services and products. Headquartered in Atlanta, Georgia, the company operates through its subsidiaries, including Orkin, Western Pest Services, and others, serving both residential and commercial customers. Rollins offers a comprehensive range of pest management solutions that include termite control, rodent control, and preventive services, focusing on integrated pest management practices to ensure customer satisfaction and environmental responsibility.

How the Company Makes Money

Rollins generates revenue primarily through its pest control services, which are provided on a subscription basis and include both one-time treatments and ongoing maintenance contracts. The company earns money from residential customers through a series of service plans that typically require annual contracts, ensuring a steady revenue stream. Additionally, Rollins services commercial clients, which can include restaurants, hotels, and other businesses that require regular pest control services. The company also sells pest control products, including insecticides and traps, which contribute to its revenue. Strategic partnerships with local franchises and third-party service providers enhance its reach and service capabilities, further driving revenue growth. Rollins benefits from a strong brand reputation and an established customer base, which supports consistent financial performance.

Rollins Financial Statement Overview

Summary

Rollins exhibits strong financial health with consistent revenue growth, stable profitability, and effective cash flow management. While leverage is increasing, the company maintains a strong return on equity and cash flow metrics, positioning it well for future growth.

Income Statement

Rollins demonstrates solid revenue growth with a 3.08% increase in TTM, supported by consistent gross and net profit margins. The EBIT and EBITDA margins are stable, indicating efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.67, reflecting balanced leverage. Return on equity is strong at 35.93%, showcasing effective use of equity capital. However, the increasing debt levels over the years could pose future risks if not managed carefully.

Cash Flow

Rollins shows robust free cash flow growth of 6.88% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of income into cash. The free cash flow to net income ratio remains high, further highlighting cash flow strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.68B	3.39B	3.07B	2.70B	2.42B	2.16B
Gross Profit	1.95B	1.79B	1.60B	1.39B	1.26B	1.11B
EBITDA	840.79M	770.44M	688.17M	584.71M	534.19M	455.42M
Net Income	515.94M	466.38M	434.96M	368.60M	356.56M	266.76M
Balance Sheet
Total Assets	3.22B	2.82B	2.60B	2.12B	2.02B	1.85B
Cash, Cash Equivalents and Short-Term Investments	127.36M	89.63M	103.83M	95.35M	105.30M	98.48M
Total Debt	912.08M	812.53M	816.35M	336.33M	402.76M	417.14M
Total Liabilities	1.69B	1.49B	1.44B	854.83M	910.32M	904.54M
Stockholders Equity	1.53B	1.33B	1.16B	1.27B	1.11B	941.36M
Cash Flow
Free Cash Flow	674.98M	580.08M	495.90M	435.30M	374.61M	412.56M
Operating Cash Flow	701.52M	607.65M	528.37M	465.93M	401.81M	435.79M
Investing Cash Flow	-355.49M	-176.23M	-372.89M	-134.14M	-98.97M	-162.40M
Financing Cash Flow	-310.35M	-440.71M	-149.42M	-336.02M	-290.16M	-281.27M

Rollins Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROL, the sentiment is Positive. The current price of 59.67 is above the 20-day moving average (MA) of 56.77, above the 50-day MA of 56.91, and above the 200-day MA of 55.08, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 93.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROL.

Rollins Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROL	79 Outperform	$28.89B	55.99	36.21%	1.18%	11.17%	9.81%
FTDR	68 Neutral	$4.79B	19.41	109.83%	―	8.56%	31.87%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Rollins Corporate Events

Rollins, Inc. Reports Strong Q3 2025 Financial Results

Rollins, Inc. is a global leader in consumer and commercial services, specializing in pest control and protection against termites, rodents, and insects, with operations spanning multiple continents.