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Rollins (ROL) Benefits From Organic and Inorganic Growth
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Rollins, Inc. (ROL - Free Report) has had an impressive run over the past year. The company’s shares have gained 25%, outperforming the 23% rally of the industry it belongs to.
The company recently reported fourth-quarter 2023 results, where earnings met the Zacks Consensus Estimate and revenues beat the same. Adjusted earnings of 21 cents per share increased 23.5% year over year. Revenues of $754.1 million beat the consensus mark by 0.5% and improved 14% year over year. Organic revenues of $708.4 million increased 7.3% year over year.
Rollins’ performance is currently benefiting from a healthy demand environment for its services. Management said that the company remains well-positioned for organic as well as inorganic growth.
The company’s real-time service tracking and customer Internet communication technologies have increased its competitive advantage. Its proprietary Branch Operating Support System facilitates service tracking and payment processing for technicians and provides virtual route management tools to increase route efficiency across the network, enabling cost reduction and increasing customer retention through quick response service.
Acquisitions are a significant catalyst for Rollins’ business development and are helping the company expand its global brand recognition and geographical footprint, along with boosting its revenues. Rollins completed 31 acquisitions in 2022, 39 in 2021 and 31 in 2020. The company’s acquisitions pipeline had remained strong in the last reported quarter.
Rollins consistently demonstrates its commitment to enhancing shareholder value through a consistent track record of returning capital. The company paid dividends of $264.3 million, $211.6 million and $208.7 million in 2023, 2022 and 2021, respectively.
Rollins’ current ratio (a measure of liquidity) at the end of the fourth quarter was pegged at 0.71, lower than the previous quarter’s 0.82. A current ratio of less than 1 indicates that the company may have problems paying off its short-term obligations.
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Rollins (ROL) Benefits From Organic and Inorganic Growth
Rollins, Inc. (ROL - Free Report) has had an impressive run over the past year. The company’s shares have gained 25%, outperforming the 23% rally of the industry it belongs to.
The company recently reported fourth-quarter 2023 results, where earnings met the Zacks Consensus Estimate and revenues beat the same. Adjusted earnings of 21 cents per share increased 23.5% year over year. Revenues of $754.1 million beat the consensus mark by 0.5% and improved 14% year over year. Organic revenues of $708.4 million increased 7.3% year over year.
Rollins, Inc. Price
Rollins, Inc. price | Rollins, Inc. Quote
How is Rollins Faring?
Rollins’ performance is currently benefiting from a healthy demand environment for its services. Management said that the company remains well-positioned for organic as well as inorganic growth.
The company’s real-time service tracking and customer Internet communication technologies have increased its competitive advantage. Its proprietary Branch Operating Support System facilitates service tracking and payment processing for technicians and provides virtual route management tools to increase route efficiency across the network, enabling cost reduction and increasing customer retention through quick response service.
Acquisitions are a significant catalyst for Rollins’ business development and are helping the company expand its global brand recognition and geographical footprint, along with boosting its revenues. Rollins completed 31 acquisitions in 2022, 39 in 2021 and 31 in 2020. The company’s acquisitions pipeline had remained strong in the last reported quarter.
Rollins consistently demonstrates its commitment to enhancing shareholder value through a consistent track record of returning capital. The company paid dividends of $264.3 million, $211.6 million and $208.7 million in 2023, 2022 and 2021, respectively.
Rollins’ current ratio (a measure of liquidity) at the end of the fourth quarter was pegged at 0.71, lower than the previous quarter’s 0.82. A current ratio of less than 1 indicates that the company may have problems paying off its short-term obligations.
Zacks Rank and Stocks to Consider
Rollins currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton (BAH - Free Report) and Jamf Holding (JAMF - Free Report) .
Booz Allen Hamilton sports a Zacks Rank #1 (Strong Buy) at present. BAH has a long-term earnings growth expectation of 12.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BAH delivered a trailing four-quarter earnings surprise of 12.7%, on average.
Jamf carries a Zacks Rank of 2 (Buy) at present. It has a long-term earnings growth expectation of 22.5%.
JAMF delivered a trailing four-quarter earnings surprise of 49.4%, on average.