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Why Should You Retain Rollins Stock Amid Coronavirus Crisis
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Rollins, Inc. (ROL - Free Report) has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.
The company’s shares have gained 16.8%, year to date, as against the 0.7% decline of the industry it belongs to.
Factors Driving the Stock
Demand environment for this building maintenance servicer is in good shape, driven by higher government spending and decent construction activity. The company’s business has been deemed as an essential service by the Department of Homeland Security and thus, its brands remain open in every part of the world, where it operates, during the coronavirus-induced uncertain period.
A balanced approach to organic and inorganic growth continues to benefit Rollins’ top line. Strong customer and employee retention keep organic revenues in good shape. Acquisitions are helping the company expand globally. It made 30 and 38 acquisitions in 2019 and 2018, respectively. Notably, Rollins’ total revenues were up 13.7% year over year in the last reported quarter.
Rollins believes in returning capital to shareholders and has a consistent track record of dividend payout. The company paid dividends of $153.8 million, $152.7 million and $122 million in 2019, 2018 and 2017, respectively.
Some Risks
Rollins’ debt level has increased significantly quarter over quarter. Total debt at the end of first-quarter 2020 was $244 million, up from the $214 million recorded at the end of the prior quarter. The total debt to total capital ratio of 0.29 was higher than the previous quarter’s 0.26. An increasing debt to capitalization ratio indicates that the proportion of debt to finance the company’s assets is on the rise and so is the risk of insolvency.
Further, cash and cash equivalent balance of $93 million at the end of the first quarter was well below the debt level, underscoring that the company doesn’t have enough cash to meet this debt burden.
The long-term expected earnings per share (three to five years) growth rate for CoreLogic, SPS Commerce and SailPoint is 12%, 15% and 15%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Why Should You Retain Rollins Stock Amid Coronavirus Crisis
Rollins, Inc. (ROL - Free Report) has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.
The company’s shares have gained 16.8%, year to date, as against the 0.7% decline of the industry it belongs to.
Factors Driving the Stock
Demand environment for this building maintenance servicer is in good shape, driven by higher government spending and decent construction activity. The company’s business has been deemed as an essential service by the Department of Homeland Security and thus, its brands remain open in every part of the world, where it operates, during the coronavirus-induced uncertain period.
A balanced approach to organic and inorganic growth continues to benefit Rollins’ top line. Strong customer and employee retention keep organic revenues in good shape. Acquisitions are helping the company expand globally. It made 30 and 38 acquisitions in 2019 and 2018, respectively. Notably, Rollins’ total revenues were up 13.7% year over year in the last reported quarter.
Rollins, Inc. Revenue (TTM)
Rollins, Inc. revenue-ttm | Rollins, Inc. Quote
Rollins believes in returning capital to shareholders and has a consistent track record of dividend payout. The company paid dividends of $153.8 million, $152.7 million and $122 million in 2019, 2018 and 2017, respectively.
Some Risks
Rollins’ debt level has increased significantly quarter over quarter. Total debt at the end of first-quarter 2020 was $244 million, up from the $214 million recorded at the end of the prior quarter. The total debt to total capital ratio of 0.29 was higher than the previous quarter’s 0.26. An increasing debt to capitalization ratio indicates that the proportion of debt to finance the company’s assets is on the rise and so is the risk of insolvency.
Further, cash and cash equivalent balance of $93 million at the end of the first quarter was well below the debt level, underscoring that the company doesn’t have enough cash to meet this debt burden.
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 CoreLogic , SPS Commerce (SPSC - Free Report) and SailPoint Technologies . All three stocks carry a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for CoreLogic, SPS Commerce and SailPoint is 12%, 15% and 15%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>