Rollins (ROL) AI Stock Analysis

• Market Cap: $28.05B
• Dividend Yield: 1.15%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 57.3
• Beta (1Y): 0.50
• Revenue Growth: 10.38%
• EPS Growth: 6.62%
• Country: US
• Employees: 20,000
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Personal Products & Services
• EPS (TTM): 0.29
• Shares Outstanding: 484,640,000
• 10 Day Avg. Volume: 1,411,184
• 30 Day Avg. Volume: 1,508,529
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 7.89
• Enterprise Value/Gross Profit: 15.24
• Enterprise Value/Ebitda: 35.06
• 1Y Price Target: $62.22
• Price Target Upside: 8.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 80 Outperform
• Price Target: $67.00 ▲(16.68% Upside)

Rollins' strong financial performance and positive earnings call sentiment are the most significant factors contributing to its high score. The company's robust revenue growth, efficient operations, and strategic acquisitions support a promising outlook. However, high valuation metrics and margin pressures present notable risks.

Positive Factors

Earnings

Rollins reported robust Q2 results that were broadly in line with expectations, with sales and EBITDA each approximately 1% ahead of consensus and EPS in line.

Growth Strategy

Management's optimism for 2025, with organic growth in the range of 7% to 8%, is driven by the strength of core pest control markets, its recession-resilient business model, and operational execution by its teams.

Negative Factors

Margin Pressure

Incremental EBITDA margins were just under 20% in Q2, under the company’s 30% target for the fifth straight quarter and seventh out of the last eight.

Supply Chain and Regulatory Risks

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., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers traditional and baiting termite protection, as well as ancillary services. It serves clients directly, as well as through franchisee operations. Rollins, Inc. was incorporated in 1948 and is headquartered in Atlanta, Georgia.

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 demonstrates commendable financial health with strong revenue and profit growth, efficient operations, and a stable balance sheet. The company's ability to generate strong cash flows underpins its capacity for sustained growth and strategic investments.

Income Statement

Rollins demonstrates strong revenue and profit growth, with a TTM revenue growth rate of 5.37% and consistent net profit margins. The company's gross profit margin stands at 51.80% TTM, indicating efficient cost management. Stable EBIT and EBITDA margins highlight operational efficiency.

Balance Sheet

The balance sheet is robust, with a debt-to-equity ratio of 0.67 TTM, indicating prudent leverage. The equity ratio of 45.39% reflects a solid equity base, supporting financial stability. However, the ROE of 33.89% suggests effective use of equity to generate profits.

Cash Flow

Cash flow performance is strong, with a healthy free cash flow to net income ratio of 1.29 TTM. The operating cash flow to net income ratio of 1.34 indicates excellent cash conversion, and free cash flow growth of 8.87% supports ongoing capital investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.57B	3.39B	3.07B	2.70B	2.42B	2.16B
Gross Profit	1.85B	1.79B	1.60B	1.39B	1.26B	1.11B
EBITDA	803.87M	771.13M	705.06M	584.71M	534.19M	447.13M
Net Income	489.32M	466.38M	434.96M	368.60M	356.56M	266.76M
Balance Sheet
Total Assets	3.18B	2.82B	2.60B	2.12B	2.02B	1.85B
Cash, Cash Equivalents and Short-Term Investments	123.03M	89.63M	103.83M	95.35M	105.30M	98.48M
Total Debt	967.18M	812.53M	816.35M	336.33M	402.76M	417.14M
Total Liabilities	1.74B	1.49B	1.44B	854.83M	910.32M	904.54M
Stockholders Equity	1.44B	1.33B	1.16B	1.27B	1.11B	941.36M
Cash Flow
Free Cash Flow	631.56M	580.08M	495.90M	435.30M	374.61M	412.56M
Operating Cash Flow	657.12M	607.65M	528.37M	465.93M	401.81M	435.79M
Investing Cash Flow	-345.70M	-176.23M	-372.89M	-134.14M	-98.97M	-162.40M
Financing Cash Flow	-295.39M	-440.71M	-149.42M	-336.02M	-290.16M	-281.27M

Rollins Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.42
• 50DMA: Positive
• 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 57.42 is above the 20-day moving average (MA) of 57.33, above the 50-day MA of 56.69, and above the 200-day MA of 52.44, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 33.78 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
ROL	80 Outperform	$28.05B	57.31	36.52%	1.15%	10.38%	6.62%
FTDR	73 Outperform	$4.30B	17.44	109.83%	―	8.56%	31.87%
Sector *	61 Neutral	$17.22B	11.49	-5.97%	3.08%	1.37%	-15.54%
EJH	40 Neutral	$4.40M	―	-11.87%	―	-11.14%	98.81%

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.