Rollins, Inc. ROL has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
The company’s 2024 and 2025 earnings are expected to increase 10% and 10.5%, respectively, year over year.
ROL Thrives on Growth, Efficiency and Acquisitions
Rollins, a leading provider of pest and termite control services, is benefiting from a strong demand environment across its business segments. In the third quarter of 2024, the company reported a 9% year-over-year increase in revenues. Growth was observed across its key segments: residential (6.4%), commercial (9.4%) and termite (14.5%).
Rollins, Inc. Revenue (TTM)
Rollins, Inc. revenue-ttm | Rollins, Inc. Quote
The company has strategically developed its operational platform to enhance cross-selling opportunities, improve cost efficiency, and provide quick and effective customer service. Rollins' real-time service tracking and customer communication technologies offer a competitive edge, ensuring better service delivery and customer satisfaction.
Additionally, its proprietary Branch Operating Support System supports service tracking, payment processing and virtual route management. These tools help optimize route efficiency, reduce costs, and boost customer retention through swift and reliable services.
Acquisitions continue to play a pivotal role in Rollins' expansion strategy. These efforts have significantly bolstered the company’s global presence and revenue growth. Currently operating in approximately 70 countries, Rollins completed 24 acquisitions in 2023, 31 in 2022 and 39 in 2021.
Rollins also demonstrates its commitment to shareholders through consistent dividend payments, reflecting confidence in its business performance. Dividends paid in 2023, 2022 and 2021 amounted to $264.3 million, $211.6 million and $208.7 million, respectively.
ROL’s Liquidity Position Remains Below Average
Rollins’ current ratio (a measure of liquidity) at the end of the third quarter was pegged at 0.78, lower than the industry's 0.91. The current ratio has declined from the year-ago quarter's 0.82. A current ratio of less than 1 indicates that the company may have problems paying off its short-term obligations.
Zacks Rank & Stocks to Consider
Rollins currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Climb Global Solutions CLMB and Parsons PSN.
Climb Global Solutions flaunts a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CLMB has a long-term earnings growth expectation of 16%. It delivered a trailing four-quarter earnings surprise of 51.1%, on average.
Parsons sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 18.6%. PSN delivered a trailing four-quarter earnings surprise of 17.5%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
