Company Overview
Rollins, Inc. operates as a provider of pest and wildlife control services and protection for both residential and commercial customers within the United States and internationally. The company functions within the Consumer Cyclical sector, specifically in the Personal Services industry, positioning it as a player in the broader economy where demand often correlates with discretionary spending and construction activity. Its operational scale is substantial, reflected in a market capitalization of $25.29B and an annual revenue of $3.76B generated by a workforce of 21,946 employees. These valuation and revenue figures indicate that Rollins is a significant entity within its niche, commanding a large market presence that allows for extensive geographic coverage and a diverse service portfolio across domestic and international markets.
Financial Health
The company generated revenue of $3.76B over the trailing twelve months, resulting in a net income of $526.70M and an EBITDA of $854.01M. The significant gap between the revenue figure and the net income reveals a cost structure where operating expenses, including cost of goods sold, general and administrative costs, and taxes, consume a substantial portion of top-line growth, leaving $526.70M as the final profit. The free cash flow stands at $555.21M, which represents cash generated after capital expenditures, providing the company with financial flexibility to fund operations, manage debt obligations, or pursue strategic initiatives without relying solely on external financing. Margin analysis shows a gross margin of 52.8%, indicating high pricing power or low direct costs relative to sales, while an operating margin of 17.6% and a profit margin of 14.0% demonstrate the efficiency of the company's overhead management and tax environment. On the balance sheet, the company holds $100.00M in cash against total debt of $1.04B, resulting in a debt-to-equity ratio of 75.53%, which suggests a leveraged capital structure where debt obligations exceed equity capitalization. The current ratio is 0.60, indicating that the company's current assets are less than its current liabilities, which points to a tight short-term liquidity position that requires careful management of working capital. Return on Equity is 38.9% and Return on Assets is 15.3%, metrics that reveal high management effectiveness in generating returns for shareholders relative to the equity invested and efficient utilization of total assets to generate profits.
Valuation Assessment
Valuation metrics show a P/E Ratio (TTM) of 48.13 and a Forward P/E of 37.39, where the difference between these figures implies that the market expects earnings to grow significantly in the future to justify the lower forward multiple. The price-to-book ratio is 18.37, indicating that the market values the company at a substantial premium over its tangible book value, likely due to intangible assets, brand strength, or expected future earnings potential. Alternative valuation metrics include a price-to-sales ratio of 6.72 and an EV/EBITDA of 30.65, which suggest that investors are willing to pay a high multiple for every dollar of sales and earnings, reflecting confidence in the company's growth trajectory and profitability. The stock has traded between a 52-week low of $49.73 and a 52-week high of $66.14; without the specific current price in the provided facts, the precise percentage deviation cannot be calculated, but the range defines the recent volatility envelope for the security. The beta value is 0.80, meaning the stock price is generally less volatile than the broader market, offering a degree of stability relative to the overall market index movements.
Growth & Income
Growth rates indicate a Revenue Growth (YoY) of 9.7% and an Earnings Growth (YoY) of 9.9%, where earnings are growing slightly faster than revenue, implying that the company is successfully leveraging its scale to improve operating leverage and profitability as sales expand. The company pays a dividend with a Dividend Yield of 1.4% and a Payout Ratio of 62.3%, suggesting that the dividend is funded from a portion of its earnings while retaining the remainder for operations and growth. The payout ratio of 62.3% is sustainable given the company's strong net income, allowing it to maintain dividend payments while still retaining capital for reinvestment. Overall, the growth and income profile presents a balanced picture of a mature company delivering steady earnings expansion and modest income returns to shareholders through dividends.