1.99%
7.27%
5.47%
3.78%
14.80%
61.17%
96.52%

Company Description

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 traditional and baiting termite protection, as well as ancillary services.It serves clients directly, as well as through franchisee operations.Rollins, Inc.


was incorporated in 1948 and is headquartered in Atlanta, Georgia.

Market Data

Last Price 49.72
Change Percentage 1.99%
Open 49.08
Previous Close 48.75
Market Cap ( Millions) 24080
Volume 1170625
Year High 52.16
Year Low 40.41
M A 50 48.35
M A 200 48.26

Financial Ratios

FCF Yield 2.23%
Dividend Yield 1.24%
ROE 38.51%
Debt / Equity 63.70%
Net Debt / EBIDTA 96.53%
Price To Book 18.27
Price Earnings Ratio 51.29
Price To FCF 44.78
Price To sales 7.27
EV / EBITDA 32.2

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Residential

Expected Growth : 6.5 %

What the company do ?

Residential from Rollins, Inc. provides pest control services to homeowners, protecting their homes and families from pests and rodents.

Why we expect these perspectives ?

Residential segment growth of 6.5% at Rollins, Inc. is driven by increasing demand for pest control services, fueled by rising homeownership rates, growing awareness of health risks associated with pests, and expansion into new markets. Additionally, the company's focus on digital marketing and customer retention strategies contributes to the segment's growth.

Segment nΒ°2 -> Commercial

Expected Growth : 6.8 %

What the company do ?

Commercial from Rollins, Inc. is a pest control service for businesses, providing customized solutions to eliminate pests and maintain a clean environment.

Why we expect these perspectives ?

Rollins, Inc.'s commercial segment growth of 6.8% is driven by increasing demand for pest control services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, customer retention, and pricing strategies have contributed to revenue growth.

Segment nΒ°3 -> Termite Completions, Bait Monitoring, Renewals, & Ancillary

Expected Growth : 7.2 %

What the company do ?

Termite Completions, Bait Monitoring, Renewals, & Ancillary from Rollins, Inc. refer to services for termite control, monitoring bait stations, renewing contracts, and additional services for pest management.

Why we expect these perspectives ?

Rollins, Inc.'s 7.2% growth is driven by strong demand for Termite Completions, effective Bait Monitoring systems, and high customer retention rates resulting in increased Renewals. Additionally, the company's Ancillary services, such as special services and insulation, contribute to the growth. These fundamental drivers demonstrate the company's ability to provide comprehensive pest control solutions, leading to sustained revenue growth.

Segment nΒ°4 -> Other

Expected Growth : 6.2 %

What the company do ?

Other from Rollins, Inc. refers to the company's non-core businesses, including its pest control operations in Australia and Canada.

Why we expect these perspectives ?

Rollins, Inc.'s 6.2% growth is driven by increasing demand for pest control services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, customer retention, and cost savings initiatives have contributed to its growth momentum.

Segment nΒ°5 -> Franchise

Expected Growth : 7.5 %

What the company do ?

Rollins, Inc. is a franchisor of Orkin, a pest control services company, offering commercial and residential pest control solutions.

Why we expect these perspectives ?

Strong brand recognition, increasing demand for pest control services, and strategic acquisitions drive Rollins' franchise growth. The company's scalable business model, efficient operations, and effective marketing strategies also contribute to its 7.5% growth rate. Additionally, the growing need for termite control and mosquito services, particularly in the southeastern United States, further supports franchise expansion.

Rollins, Inc. Products

Product Range What is it ?
Pest Control Services Residential and commercial pest control services to eliminate pests and prevent future infestations
Termite Control Services Termite detection, removal, and prevention services to protect homes and businesses from termite damage
Wildlife Removal Services Humane removal and relocation of wildlife from homes and businesses
Mosquito Control Services Mosquito control services to reduce mosquito populations and prevent mosquito-borne illnesses
Specialized Disinfection Services Disinfection services to eliminate bacteria, viruses, and other microorganisms from homes and businesses

Rollins, Inc.'s Porter Forces

The threat of substitutes for Rollins, Inc. is moderate due to the presence of alternative pest control services and products.

The bargaining power of customers is low due to the fragmented nature of the pest control industry and the lack of concentration among customers.

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of pest control products and services.

The threat of new entrants is high due to the relatively low barriers to entry in the pest control industry and the attractiveness of the market.

The intensity of rivalry is high due to the presence of multiple players in the pest control industry and the need to differentiate services and products to gain market share.

Capital Structure

Value
Debt Weight 41.40%
Debt Cost 3.95%
Equity Weight 58.60%
Equity Cost 7.21%
WACC 5.86%
Leverage 70.64%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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KBH KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached …
BFAM Bright Horizons Family Solutions Inc. provides early education and child care, back-up care, educational advisory, and other workplace solutions services for employers and families. The company operates through three segments: …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
49.72$
Current Price
49.72$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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