Rollins Inc (ROL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With a current share price of $48.40, Rollins Inc has experienced a slight daily decrease of 0.21%, yet it maintains a positive three-month change of 4.89%. A detailed analysis, supported by the GF Score, positions Rollins Inc for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Rollins Inc boasts a GF Score of 97, signaling strong future performance potential.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Understanding Rollins Inc's Business
Rollins Inc, with a market cap of $23.44 billion and annual sales of $3.16 billion, is a global leader in route-based pest-control services. The company primarily operates under the Orkin brand, which is a market leader in the U.S. and Canada. Rollins focuses predominantly on residential pest and termite prevention, particularly in North American markets, reflecting its strategic emphasis on these regions.
Financial Strength Breakdown
Rollins Inc's financial robustness is evident through its impressive Interest Coverage ratio of 23.13, significantly surpassing the benchmark set by Benjamin Graham. Additionally, its Altman Z-Score of 11.64 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.27 showcases prudent debt management.
Profitability and Growth Metrics
Rollins Inc's profitability is highlighted by its increasing Operating Margin, which has grown consistently over the past five years to 19.15% in 2023. This trend is mirrored in its Gross Margin, which also shows a steady increase, indicating enhanced efficiency in revenue conversion into profit. The company's growth is further underscored by a 12.6% 3-Year Revenue Growth Rate, outperforming 72.34% of its industry peers.
Conclusion: A Promising Investment?
Considering Rollins Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through 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.
