$50.63
arrow_drop_up2.03%Is ROL a Buy or Sell based on AI Analysis?
Fundamental Analysis
Rollins Inc (ROL) appears to be a fundamentally strong company based on key indicators such as its high return on equity of 35.91%, indicating efficient use of shareholder funds to generate profits. The company's solid gross margin of 52.17% and net margin of 14.15% demonstrate its ability to efficiently manage costs and generate profits. Additionally, Rollins Inc has a healthy current ratio of 0.7, suggesting its ability to meet short-term obligations with its current assets. Furthermore, the company's strong revenue growth of 14% reflects its ability to consistently grow its top line and capture market share. Moreover, Rollins Inc's dividend yield of 1.36% and consistent annual dividends per share of $0.54 highlight the company's commitment to rewarding its investors with regular income. The company's low debt-to-equity ratio of 0.71 signifies its conservative approach to financing and minimal risk of financial distress. Overall, Rollins Inc's strong financial performance and prudent management of resources position it as a promising investment opportunity for those seeking stable and reliable returns in the stock market.
Positive Development
Strong Revenue and Earnings Growth: ROL has posted robust organic and acquisition-related growth, indicating a strong financial performance. Board Changes: The nomination of Dale Jones for election to the Board of Directors suggests a potential shift in the company's strategic direction. Stock Outperformance: Despite the overall market turbulence, ROL has consistently outperformed its competitors, indicating a strong market position.
Negative Development
High Debt-to-Equity Ratio: ROL's total debt to equity ratio is 0.4247, indicating a high level of debt. This could be a concern for investors, especially if the company's earnings are not sufficient to cover its interest payments. Decreasing Earnings Per Share (EPS): ROL's EPS has decreased from 0.2873 to 0.2248, indicating a potential decrease in profitability. Low Return on Equity (ROE): ROL's ROE is 0.3559, which is relatively low compared to industry standards. This suggests that the company may not be generating adequate profits from its assets.
Technical Analysis
Rollins Inc (ROL) has shown a mixed technical analysis with one buy indicator and four hold indicators in the past month. The stock has displayed a neutral technical rating according to the latest data. While the stock has shown a positive seven-day price change percent of 5.57%, it also has a technical sell indicator count of three for indicators such as CCI, WILLR, and STOCHRSI. The stock's price movement may be influenced by these conflicting technical signals, suggesting a potential uncertainty in its short-term price direction. Additionally, Rollins Inc's technical indicators were last updated on March 4, 2024. The stock has a technical buy indicator count of one and a technical hold indicator count of four, indicating a relatively stable technical outlook in the short term. The stock's technical analysis includes indicators such as ATR, RSI, MACD, ADX, and ROC, which provide insights into its price momentum and potential entry or exit points for traders. Overall, the technical analysis suggests that Rollins Inc's stock may experience moderate price fluctuations in the near future, influenced by various technical factors.
Conclusion and recommendation
Based on the information provided, it appears that Rollins Inc (ROL) is a well-established company in the Consumer Cyclical sector with a market capitalization of $21.81 billion. The company's stock price has been steadily increasing, with a current price of $45.08 and a healthy dividend yield of 1.36%. Rollins Inc has shown consistent growth over the years, with a five-year price change percent of 68.33% and a return on equity of 35.91%. Additionally, the company has a strong balance sheet with assets of $2.6 billion and a relatively low debt-to-equity ratio of 0.71. Overall, Rollins Inc seems to be a stable investment option with promising growth prospects. In conclusion, Rollins Inc presents a compelling investment opportunity for those looking for a stable and growth-oriented company in the Consumer Cyclical sector. With a solid financial standing, consistent growth metrics, and a favorable market outlook, investing in Rollins Inc could prove to be a wise decision for long-term investors. However, as with any investment, it is important to conduct thorough research and consult with a financial advisor before making any investment decisions. Overall, Rollins Inc stands out as a reputable company that is well-positioned for continued success in the future.