Rollins Inc (ROL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial standing and promising growth trajectory. With a current share price of $50.06, despite a slight daily decrease of 0.38%, Rollins Inc has shown a notable increase of 10.99% over the past three months. A detailed examination, 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 across five key dimensions of valuation. This system, which has been rigorously backtested from 2006 to 2021, reveals that stocks with higher GF Scores typically yield superior long-term 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 prospects.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 9/10
Understanding Rollins Inc's Business
Rollins Inc, with a market cap of $24.24 billion and annual sales of $3.23 billion, is a global leader in route-based pest-control services. The company primarily operates under the well-known Orkin brand in the US and Canada, focusing on residential pest and termite prevention. This strategic focus has solidified its market leadership in these regions, contributing to its robust operating margin of 19.67%.
Financial Strength Breakdown
Rollins Inc's financial resilience is evident in its Financial Strength rating. The company's Interest Coverage ratio stands at an impressive 21.71, significantly above the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 11.75 indicates a strong buffer against financial distress, while a Debt-to-Revenue ratio of 0.27 showcases prudent debt management.
Profitability and Growth Metrics
Rollins Inc's Profitability Rank is exceptional, supported by a consistent increase in Operating Margin over the past five years, reaching 19.15% in 2023. The company's Gross Margin also reflects increasing efficiency, with a latest figure of 52.17%. These metrics underscore Rollins Inc's capability to convert revenue into profit effectively.
On the growth front, Rollins Inc has demonstrated a strong commitment to expansion, evidenced by a 12.6% 3-Year Revenue Growth Rate, outperforming 69.89% of its industry peers. The company's EBITDA growth further accentuates its growth capabilities.
Conclusion
Considering Rollins Inc's robust 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.
