Rollins (ROL) AI Stock Analysis

• Market Cap: $27.04B
• Dividend Yield: 1.18%
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 56.6
• Beta (1Y): 0.48
• Revenue Growth: 9.46%
• EPS Growth: 9.04%
• Country: US
• Employees: 20,000
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Personal Products & Services
• EPS (TTM): 0.22
• Shares Outstanding: 484,646,450
• 10 Day Avg. Volume: 1,407,783
• 30 Day Avg. Volume: 1,523,994
• PEG Ratio: 27.18
• Price to Book (P/B): 19.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.61
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 15.24
• Enterprise Value/Ebitda: 8.88
• 1Y Price Target: $60.80
• Price Target Upside: 8.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: ―

Rollins exhibits strong financial performance with significant revenue and margin improvements and strategic acquisitions. Despite potential risks from increased debt and valuation concerns, the company's positive earnings call and robust technical indicators contribute to a favorable outlook.

Positive Factors

Growth Opportunities

The pest control industry is highly fragmented, offering Rollins potential growth opportunities in a market that has been growing at a 4.3% CAGR over the last 10 years.

Modernization Efforts

Modernization efforts under current management, including technology transformation and operating efficiencies, are accelerating growth.

Negative Factors

Profitability Challenges

High employee turnover creates headwinds for profitability, but the hiring environment has improved since the pandemic, and Rollins, Inc. is leveraging AI in its recruitment process.

Risks to Earnings

There is some risk to consensus EBITDA/EPS estimates due to supply chain disruptions, geopolitical instability, shifting consumer preferences, economic downturn, acquisition integration, and regulatory, labor, and environmental challenges.

Rollins Business Overview & Revenue Model

Company Description

Rollins, Inc. (ROL) is a global consumer and commercial services company, primarily engaged in providing pest and termite control services. Headquartered in Atlanta, Georgia, Rollins operates through its various subsidiaries, including Orkin, HomeTeam Pest Defense, and Western Pest Services, among others. The company is recognized for its expertise in pest management solutions and offers a comprehensive range of services to both residential and commercial clients across multiple regions.

How the Company Makes Money

Rollins generates revenue primarily through its pest and termite control services offered to residential and commercial customers. The company's key revenue streams include recurring service contracts and one-time treatments for pest management. Rollins benefits from a stable revenue model due to the nature of pest control services, which often require ongoing maintenance and preventive measures. Additionally, Rollins leverages its extensive network of subsidiaries and franchise operations to expand its market reach and service offerings. The company also invests in technology and research to enhance service efficiency and customer satisfaction, further contributing to its financial performance. Strategic acquisitions and partnerships with local service providers enhance Rollins' capabilities and market presence, driving additional revenue growth.

Rollins Financial Statement Overview

Summary

Rollins shows strong financial performance with robust revenue and profit growth, supported by efficient cash generation and a solid balance sheet. However, increasing debt levels need careful management.

Income Statement

Rollins exhibits strong revenue and profit growth over the years, with a consistent upward trajectory. The gross profit margin and net profit margin are robust, reflecting operational efficiency. The revenue growth rate from 2024 to the TTM period is healthy. EBIT and EBITDA margins are stable, indicating solid profitability.

Balance Sheet

The company's balance sheet shows a healthy equity ratio, indicating a strong capital structure. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity is commendable, reflecting effective use of shareholder funds. However, total debt has increased, which could pose potential risks if not managed carefully.

Cash Flow

Rollins demonstrates a solid cash flow position with strong free cash flow growth. The operating cash flow to net income ratio indicates efficient cash generation from operations. The free cash flow to net income ratio is strong, highlighting effective cash management. Consistent free cash flow growth supports ongoing financial stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.39B	3.07B	2.70B	2.42B	2.16B
Gross Profit	1.79B	1.60B	1.39B	1.26B	1.11B
EBITDA	771.13M	705.06M	584.71M	534.19M	449.73M
Net Income	466.38M	434.96M	368.60M	356.56M	266.76M
Balance Sheet
Total Assets	2.82B	2.60B	2.12B	1.98B	1.85B
Cash, Cash Equivalents and Short-Term Investments	89.63M	103.83M	95.35M	105.30M	98.48M
Total Debt	812.53M	816.35M	336.33M	402.76M	417.14M
Total Liabilities	1.49B	1.44B	854.83M	897.38M	904.54M
Stockholders Equity	1.33B	1.16B	1.27B	1.08B	941.36M
Cash Flow
Free Cash Flow	580.08M	495.90M	435.30M	374.61M	412.56M
Operating Cash Flow	607.65M	528.37M	465.93M	401.81M	435.79M
Investing Cash Flow	-176.23M	-372.89M	-134.14M	-98.97M	-162.40M
Financing Cash Flow	-440.71M	-149.42M	-336.02M	-290.16M	-281.27M

Rollins Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 55.8 is below the 20-day moving average (MA) of 56.03, below the 50-day MA of 56.56, and above the 200-day MA of 51.79, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 is Neutral, 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
FTDR	78 Outperform	$4.25B	18.76	132.22%	―	5.53%	36.30%
ROL	78 Outperform	$27.04B	56.64	37.83%	1.18%	9.46%	9.04%
Sector *	57 Neutral	HK$25.53B	4.08	-2.03%	6.11%	-0.31%	-67.64%
EJH	40 Neutral	$9.66M	―	-11.87%	―	-25.81%	85.84%

Rollins Corporate Events

Rollins Elects Directors at 2025 Annual Meeting

On April 22, 2025, Rollins held its 2025 Annual Meeting of Shareholders where key decisions were made to shape its future governance and financial oversight. Shareholders elected five director nominees to serve until the 2026 Annual Meeting and ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, indicating continued confidence in the company’s leadership and financial management.