Stock of the Day

January 7, 2020

Rollins (ROL)

$51.29
-$0.05 (-0.1%)
Market Cap: $24.86B

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. reported earnings per share (EPS) of $0.23 for the latest quarter, meeting analyst expectations, which indicates strong financial performance and stability.
  • The company has a high return on equity of 37.94%, suggesting effective management and profitability relative to shareholder equity.
  • Rollins, Inc. has declared a quarterly dividend of $0.165, translating to an annualized dividend of $0.66 and a yield of 1.29%, providing a steady income stream for investors.
  • The stock is currently trading at $51.32, reflecting a strong market capitalization of $24.85 billion, which indicates investor confidence and market presence.
  • Analysts have a consensus rating of "Hold" with a target price of $52.00, suggesting that the stock is fairly valued and may have potential for growth.

Rollins Bear Case

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

  • The company's price-to-earnings (P/E) ratio is 53.45, which is relatively high, indicating that the stock may be overvalued compared to its earnings.
  • Rollins has a debt-to-equity ratio of 0.30, which, while not excessively high, suggests that the company is somewhat reliant on debt financing, potentially increasing financial risk.
  • Despite a solid performance, the stock has a beta of 0.76, indicating lower volatility compared to the market, which may limit potential high returns for aggressive investors.
  • Recent analyst reports show mixed ratings, with some firms maintaining a "hold" rating, which may indicate uncertainty about future growth prospects.
  • Hedge funds and institutional investors own 51.79% of the company's stock, which could lead to volatility if large shareholders decide to sell their positions.

Recent News