Rollins Inc. (NYSE:ROL) has a beta of 0.43, a 12-month trailing P/E ratio of 76.85, and a growth ratio of 9.37. The stock’s Relative Strength Index (RSI) is 50.03, with weekly volatility at 3.21% and ATR at 1.13. The ROL stock’s 52-week price range has touched low of $20.44 and a $43.00 high. Its shares traded lower over the last trading session, losing -3.10% on 12/29/20. The shares fell to a low of $38.54 before closing at $38.81. Intraday shares traded counted 1.31 million, which was 18.83% higher than its 30-day average trading volume of 1.62M. ROL’s previous close was $40.05 while the outstanding shares total 491.63M.
Investors have identified the Personal Services company Rollins Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $18.98 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Rollins Inc. (ROL) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ROL, the company has in raw cash 95.44 million on their books with 15.63 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 331.84 million total, with 469.14 million as their total liabilities.
ROL were able to record 322.92 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 1.16 million. In cash movements, the company had a total of 340.61 million as operating cash flow.
Potential earnings growth for Rollins Inc. (ROL)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Rollins Inc. recorded a total of 583.7 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 4.67% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 5.2%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 275.47 million trying to sell their products during the last quarter, with the result yielding a gross income of 308.22 million. This allows shareholders to hold on to 491.63M with the recently reported earning now reading 0.24 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.17 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.53 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ROL sounds very interesting.
Is the stock of ROL attractive?
In related news, President and COO, Wilson John F sold 26,000 shares of the company’s stock in a transaction that recorded on Feb 12. The sale was performed at an average price of 39.76, for a total value of 1,033,760. As the sale deal closes, the Senior VP, CFO & Treasurer, Paul Edward Northen now bought 5 shares of the company’s stock, valued at 175. In the last 6 months, insiders have changed their ownership in shares of company stock by 51.50%.
3 out of 4 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Rollins Inc.. 0 analysts has assigned a Sell rating on the ROL stock. The 12-month mean consensus price target for the company’s shares has been set at $36.44.