* Note: Prices are in Million (M) USD.
Description:
Rollins, Inc. is a North American consumer and commercial services company.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $90 M
Debt : $813 M
EBITDA : $803 M
Net Debt (Debt - Cash): $723 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Business services
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 52.56
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $222 M
Average Revenue: $1,666 M
Revenue Converted To Free Cash Flow (%): 13.3%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $3,389 M
Revenue 4 Years Ago (2020-12-31): $2,161 M
Last 5 Years Average Revenue Growth: 11%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $484 M
Share Count 5 Years Ago (2020-12-31): $492 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.14
Trailing 12-Month Earnings Per Share (EPS): $1.00
Average Earnings Per Share (EPS): $1.07
Dividend Per Share (DPS): $1
Payout Ratio: 60%
Dividend Yield: 1%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 30.1%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $56
52-Week Low: $45
Threshold Price (15% Above 52-Week Low): $52
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $27,784 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 22 points to above Rollins Inc (ROL) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 3 Years Avg PE
40.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 3 Years Avg P/E (40.00)
× EPS ($1.07) = $42.80.
Last 3 Years Avg PE 40, Fair Value PE 15, Industry Based PE 18, Growth Based PE 11, RCFC Based PE 20.66, ROE Based PE 34.12, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 22.27. Value-Trades has assined P/E value 22.27. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.07.
The fair value of Rollins Inc (ROL) stock should be (22.27 x $1.07) = $23.82.
