Rollins Inc (ROL, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $42.63, Rollins Inc has witnessed a daily loss of 0.71%, marked against a three-month change of 6%. A thorough analysis, underlined by the GF Score, suggests that Rollins Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 9/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in profitability and growth, and a slightly lower but still strong GF Value rank, GuruFocus assigned Rollins Inc the GF Score of 98 out of 100, which signals the highest outperformance potential.
Understanding Rollins Inc Business
Rollins Inc is a global leader in route-based pest-control services, with operations spanning multiple continents. With a market cap of $20.63 billion and sales of $3.07 billion, Rollins Inc boasts an operating margin of 19.15%. The company's portfolio of pest-control brands includes the prominent Orkin brand, a market leader in the U.S. and Canada. Rollins Inc's focus on residential pest and termite prevention, particularly in the U.S. and Canadian markets, has been a significant factor in its success.
Financial Strength Breakdown
Rollins Inc's Financial Strength rating reflects a resilient balance sheet and prudent capital management. The company's Interest Coverage ratio of 30.88 is a testament to its ability to comfortably cover interest obligations. Furthermore, an Altman Z-Score of 10.84 indicates a strong defense against financial distress. Rollins Inc's strategic debt management is evident in its favorable Debt-to-Revenue ratio of 0.27.
Profitability Rank Breakdown
The Profitability Rank of Rollins Inc is exemplary, with an increasing Operating Margin over the past five years, reaching 19.15% in 2023. The company's Gross Margin has also consistently risen, indicating an enhanced ability to convert revenue into profit. Rollins Inc's financial health is further confirmed by a strong Piotroski F-Score and a Predictability Rank of 4.5 stars, signaling consistent operational performance.
Growth Rank Breakdown
Rollins Inc's high Growth Rank reflects its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 12.6% outperforms 76.04% of companies in the Personal Services industry. Rollins Inc's EBITDA growth rates over the past three and five years highlight its growth capabilities.
Next Steps
Considering Rollins Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
