ROL's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 1,041.36 -- higher than 96.06% of US-listed equities with positive expected earnings growth.
With a price/earnings ratio of 82.15, Rollins Inc P/E ratio is greater than that of about 90.6% of stocks in our set with positive earnings.
Price to trailing twelve month operating cash flow for ROL is currently 43.08, higher than 91.36% of US stocks with positive operating cash flow.
Stocks that are quantitatively similar to ROL, based on their financial statements, market capitalization, and price volatility, are SYKE, PVH, JW.A, JBHT, and CBRE.
ROL's SEC filings can be seen here. And to visit Rollins Inc's official web site, go to www.rollins.com.
Rollins Inc. provides pest and termite control services to residential and commercial customers in the United States, Canada, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa, and Mexico. The company was founded in 1948 and is based in Atlanta, Georgia.
ROL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Rollins Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Rollins Inc ranked in the 26th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for ROL, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 97. Notably, its equity weight is greater than 95.75% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than just 9.62% of the free cash flow producing stocks we're observing.
ROL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 49.76% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AXL, DLB, NTZ, DBI, and OXM can be thought of as valuation peers to ROL, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
On the line with me today and presenting are Gary Rollins, Rollins' Vice Chairman and Chief Executive Officer; John Wilson, Rollins' President and Chief Operating Officer; and Eddie Northen, Senior Vice President, Chief Financial Officer and Treasurer. Management will make some opening remarks and then we'll open the line for your questions.