Rollins Inc (NYSE: ROL)

Sector: Consumer Cyclical Industry: Personal Services CIK: 0000084839
Market Cap 29.03 Bn
P/B 21.12
P/E 55.12
P/S 7.72
ROIC (Qtr) 22.51
Div Yield % 1.13
Rev 1y % (Qtr) 9.70
Total Debt (Qtr) 1.04 Bn
Debt/Equity (Qtr) 0.76
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About

Rollins, Inc., a leading international services company with the ticker symbol ROL, operates in the pest control industry, a highly competitive and fragmented market. From over 800 company-owned and franchised locations in approximately 70 countries, Rollins provides essential pest and wildlife control services and protection against termite damage, rodents, and insects to over two million residential and commercial customers (Rollins, Inc.). Rollins generates revenue through its three primary service offerings: Residential, Commercial, and Termite....

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Investment thesis

Bull case

  • Strong operating cash flow of 678.11M provides robust 0.65x coverage of total debt 1.04B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 678.11M provides exceptional 23.74x coverage of interest expenses 28.56M, showing strong debt service capability.
  • Operating cash flow of 678.11M provides strong 17.08x coverage of stock compensation 39.71M, indicating sustainable incentive practices.
  • Robust free cash flow of 650.02M exceeds capital expenditure of 28.09M by 23.14x, indicating strong organic growth funding capability.
  • Tangible assets of 1.18B provide exceptional 6.31x coverage of deferred revenue 187.67M, showing strong service capability backing.

Bear case

  • Operating cash flow of 678.11M barely covers its investment activities of (326.70M), with a coverage ratio of -2.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 678.11M provides thin coverage of dividend payments of (327.90M) with a -2.07 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 100M provide limited coverage of acquisition spending of (309.52M), which is -0.32x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 202.52M relative to inventory of 42.98M (4.71 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • High financing cash flow of (343.58M) relative to working capital of (312.84M), which is 1.10x suggests concerning dependence on external funding for operational needs.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Personal Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ROL Rollins Inc 29.03 Bn 55.12 7.72 1.04 Bn
2 SCI Service Corp International 11.40 Bn 21.01 2.65 5.14 Bn
3 HRB H&R Block Inc 4.26 Bn 6.94 1.12 2.94 Bn
4 FTDR Frontdoor, Inc. 4.22 Bn 16.06 2.07 1.20 Bn
5 BFAM Bright Horizons Family Solutions Inc. 3.89 Bn 19.41 1.35 1.75 Bn
6 CSV Carriage Services Inc 0.80 Bn 65.55 3.90 0.56 Bn
7 EM Smart Share Global Ltd 0.26 Bn -141.13 1.01 -
8 MED Medifast Inc 0.12 Bn -6.35 0.31 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 9.49 1.18
EV to Cash from Ops. EV/CFO 43.97 11.38
EV to Debt EV to Debt 28.72 3.64
EV to EBIT EV/EBIT 40.87 -48.48
EV to EBITDA EV/EBITDA 35.04 6.52
EV to Free Cash Flow [EV/FCF] EV/FCF 45.87 8.27
EV to Market Cap EV to Market Cap 1.03 3.43
EV to Revenue EV/Rev 7.93 1.80
Price to Book Value [P/B] P/B 21.12 3.15
Price to Earnings [P/E] P/E 55.12 2.58
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.61 -5.41
Dividend Payout Ratio % Div Payout % (Qtr) 62.70 -14.53
Dividend per Basic Share Div per Share (Qtr) 0.68 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 50.86 9.14
Interest Coverage Int. cover (Qtr) 25.54 0.71
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -1.86 13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11.57 44.85
Dividend Growth (1y) % Div 1y % (Qtr) 11.06 0.63
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 12.59 -83.44
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 10.43 1.88
EBIT Growth (1y) % EBIT 1y % (Qtr) 10.88 -59.36
EBT Growth (1y) % EBT 1y % (Qtr) 11.22 -71.50
EPS Growth (1y) % EPS 1y % (Qtr) 13.54 -98.14
FCF Growth (1y) % FCF 1y % (Qtr) 12.06 -22.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.12 9.00
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.20 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.46 0.05
Cash Ratio Cash Ratio (Qtr) 0.13 1.89
Current Ratio Curr Ratio (Qtr) 0.60 3.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.76 1.99
Interest Cover Ratio Int Coverage (Qtr) 25.54 0.71
Times Interest Earned Times Interest Earned (Qtr) 25.54 0.71
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 22.70 7.38
EBIT Margin % EBIT Margin % (Qtr) 19.40 0.88
EBT Margin % EBT Margin % (Qtr) 18.64 -9.97
Gross Margin % Gross Margin % (Qtr) 52.80 31.03
Net Profit Margin % Net Margin % (Qtr) 14.00 -8.73