Back to top

Image: Bigstock

Here's How Much You'd Have If You Invested $1000 in Rollins a Decade Ago

Read MoreHide Full Article

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Rollins (ROL - Free Report) ten years ago? It may not have been easy to hold on to ROL for all that time, but if you did, how much would your investment be worth today?

Rollins' Business In-Depth

With that in mind, let's take a look at Rollins' main business drivers.

Headquartered in Atlanta, GA, Rollins provides pest and termite control services to residential and commercial customers. The company offers protection against termite damage, insects and rodents to homes and businesses, including food manufacturers, food service establishments, hotels, transportation companies and retailers.

Rollins also offers pest management and sanitation products and services to food and commodity industries; consulting services on border protection related to Australia's biosecurity program; and bird control and specialist services.

It offers specialized services to mining, and oil and gas sectors. The company’s offerings also include mosquito control, wildlife, lawn care insurance and HVAC services.

Rollins operates through wholly-owned subsidiaries in North America, Australia and Europe. The company has international franchises in Central America, the Caribbean, the Middle East, the Mediterranean, Europe, Asia, Africa, Australia, Canada and Mexico.

Rollins, which has been in operation since 1948, has three lines of businesses — commercial pest control, residential pest control and termite and ancillary. The company has one of the largest residential customer base, which provides significant cross-sell opportunity.

As a result of increase in pest presence and activity as well as metamorphosis of termites in spring and summer, revenues remain considerably higher in the second and the third quarter compared with the first and the fourth quarter.

The company has a single reportable segment — the pest and termite control. It generated $2.69 billion in revenues in 2022, $2.42 billion  in 2021 compared with $2.16 billion generated in 2020, $2.02 billion in 2019. Rollins continues to seek international opportunities through acquisitions.

Acquisition is a key growth strategy for Rollins which allows it to operate in around 57 countries. It acquired 31 companies in 2022, 39 in 2021, 31 in 2020 and 30 in 2019.

The company maintains close relationship with a number of universities for research and validation of treatment procedures and material selection.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Rollins ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in November 2013 would be worth $4,734.28, or a 373.43% gain, as of November 10, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 145.53% and the price of gold increased 46.03% over the same time frame in comparison.

Analysts are anticipating more upside for ROL.

Rollins continues to benefit from a favorable demand environment fueled by robust construction activity, bolstering its competitive edge through real-time service tracking and customer Internet communication technologies. Additionally, strategic acquisitions have amplified its global brand recognition, expanded its geographical presence, and contributed to revenue growth, all while maintaining a consistent dividend payout, which signifies the company's dedication to shareholders and its strong belief in its business prospects. However, acquisitions and IT related expenses are likely to weigh on the company's bottom line. Multiple acquisitions can result in some integration risks. The company's business experiences seasonal fluctuations in revenues. Partly due to these, shares of Rollin have dipped 12% in the past year.

The stock has jumped 5.87% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023; the consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Rollins, Inc. (ROL) - free report >>

Published in