Stock of the Day

January 7, 2020

Rollins (ROL)

$45.10
-$0.36 (-0.8%)
Market Cap: $21.89B

About Rollins

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 termite protection services and ancillary services. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.

Rollins Bull Case

Here are some ways that investors could benefit from investing in Rollins, Inc.:

  • The current stock price is around $42, which may present a buying opportunity for investors looking for growth in the pest control sector.
  • Rollins, Inc. reported a revenue increase of over 10% year-over-year, indicating strong business performance and potential for future growth.
  • The company has a solid net margin of approximately 13.77%, suggesting efficient management and profitability.
  • With a return on equity of 38.37%, Rollins, Inc. demonstrates effective use of shareholder funds to generate profits.
  • Analysts have a generally positive outlook on the stock, with several upgrades and a consensus rating of "Moderate Buy," indicating confidence in the company's future performance.

Rollins Bear Case

Investors should be bearish about investing in Rollins, Inc. for these reasons:

  • The company has a current ratio of 0.65, which may indicate potential liquidity issues, as it suggests that current liabilities exceed current assets.
  • Rollins, Inc. has a relatively high P/E ratio of 38.71, which could suggest that the stock is overvalued compared to its earnings, making it a riskier investment.
  • Recent analyst downgrades have lowered target prices, indicating some uncertainty about the stock's short-term performance.
  • The stock has experienced significant fluctuations, with a 1-year high of $66.14 and a low of $41.50, reflecting volatility that may concern risk-averse investors.
  • The dividend payout ratio is around 66.97%, which, while providing income, may limit the company's ability to reinvest in growth opportunities.
← Previous Stock of the DayNext Stock of the Day →

Recent News