Stock of the Day

January 7, 2020

Rollins (ROL)

$36.11
-$0.27 (-0.7%)
Market Cap: $17.50B

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.:

  • Rollins, Inc. has demonstrated strong financial performance with a net margin of over 13%, indicating effective cost management and profitability.
  • The company reported a return on equity of nearly 39%, showcasing its ability to generate profits from shareholders' investments efficiently.
  • Recent revenue growth of approximately 8% year-over-year suggests that Rollins, Inc. is expanding its market presence and customer base.
  • The current stock price is around $40, which may present a buying opportunity for investors looking for value in the pest control sector.
  • Rollins, Inc. has a consistent dividend payout, with an annualized dividend yield of about 2%, providing a steady income stream for investors.

Rollins Bear Case

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

  • Analysts have recently downgraded their price targets for Rollins, Inc., indicating a potential lack of confidence in future stock performance.
  • The company missed earnings expectations in its latest quarterly report, which could raise concerns about its short-term financial health.
  • With a dividend payout ratio of over 66%, there may be limited room for future dividend increases, which could affect income-focused investors.
  • Market analysts have issued a majority "Hold" rating for the stock, suggesting that many see it as a less attractive investment at this time.
  • Rollins, Inc. operates in a competitive industry, and any economic downturn could impact its revenue and profitability significantly.
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