📊 ROL Key Takeaways
Is Rollins Inc. (ROL) a Good Investment?
Rollins demonstrates solid 11% revenue growth and exceptional free cash flow generation ($111.2M, 12.3% FCF margin), indicating operational strength. However, flat net income despite revenue expansion signals concerning margin compression, exacerbated by weak liquidity ratios (0.65x current ratio) that constrain financial flexibility.
Rollins shows high-quality fundamentals driven by consistent revenue growth, strong operating profitability, and excellent free cash flow conversion. Financial leverage appears manageable and returns on capital are strong, but flat net income and weak short-term liquidity suggest the business should still be monitored for margin pressure and working-capital risk.
Why Buy Rollins Inc. Stock? ROL Key Strengths
- Strong organic revenue growth at 11% YoY demonstrating market share gains
- Exceptional free cash flow generation of $111.2M with 12.3% FCF margin
- Asset-light business model requiring minimal capex ($7.1M) with strong FCF conversion
- Solid 16.1% operating margins reflecting operational efficiency
- Moderate leverage at 0.35x Debt/Equity with manageable long-term debt
- Revenue growth of 11.0% with strong operating margin of 19.3% indicates durable core demand and pricing discipline
- Free cash flow of $650.02M and a 17.3% FCF margin point to strong cash generation and low capital intensity
- ROE of 38.3% and ROA of 16.8% reflect efficient use of capital and a high-quality operating model
ROL Stock Risks: Rollins Inc. Investment Risks
- Net income stagnation (0% YoY) despite 11% revenue growth indicates margin compression
- Dangerously low liquidity ratios (current: 0.65x, quick: 0.59x) limiting operational flexibility
- Low returns on equity (7.8%) and assets (3.4%) suggesting capital deployment inefficiency
- Margin compression suggests cost of revenue or operating expenses growing faster than revenue
- Net income was flat year over year despite double-digit revenue growth, which may indicate rising costs or lower incremental margins
- Current ratio of 0.60x and quick ratio of 0.55x show limited short-term liquidity flexibility
- Reported gross margin of 6.7% is inconsistent with the operating margin and may indicate data classification issues that reduce analytical clarity
Key Metrics to Watch
- Gross and operating margin trends to determine if compression is stabilizing or accelerating
- Current ratio and working capital management indicating improving or deteriorating liquidity position
- Net income recovery trajectory and path to profitability growth alignment with revenue expansion
- Net income growth relative to revenue growth
- Current ratio and operating cash flow consistency
Rollins Inc. (ROL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ROL Profit Margin, ROE & Profitability Analysis
ROL vs Services Sector: How Rollins Inc. Compares
How Rollins Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rollins Inc. Stock Overvalued? ROL Valuation Analysis 2026
Based on fundamental analysis, Rollins Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rollins Inc. Balance Sheet: ROL Debt, Cash & Liquidity
ROL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rollins Inc.'s revenue has grown significantly by 55% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.89 reflects profitable operations.
ROL Revenue Growth, EPS Growth & YoY Performance
ROL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $822.5M | $105.2M | $0.22 |
| Q3 2025 | $916.3M | $136.9M | $0.28 |
| Q2 2025 | $891.9M | $129.4M | $0.27 |
| Q1 2025 | $748.3M | $94.4M | $0.19 |
| Q3 2024 | $840.4M | $127.8M | $0.26 |
| Q2 2024 | $820.8M | $110.1M | $0.22 |
| Q1 2024 | $658.0M | $88.2M | $0.18 |
| Q3 2023 | $729.7M | $108.9M | $0.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rollins Inc. Dividends, Buybacks & Capital Allocation
ROL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rollins Inc. (CIK: 0000084839)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ROL
What is the AI rating for ROL?
Rollins Inc. (ROL) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ROL's key strengths?
Claude: Strong organic revenue growth at 11% YoY demonstrating market share gains. Exceptional free cash flow generation of $111.2M with 12.3% FCF margin. ChatGPT: Revenue growth of 11.0% with strong operating margin of 19.3% indicates durable core demand and pricing discipline. Free cash flow of $650.02M and a 17.3% FCF margin point to strong cash generation and low capital intensity.
What are the risks of investing in ROL?
Claude: Net income stagnation (0% YoY) despite 11% revenue growth indicates margin compression. Dangerously low liquidity ratios (current: 0.65x, quick: 0.59x) limiting operational flexibility. ChatGPT: Net income was flat year over year despite double-digit revenue growth, which may indicate rising costs or lower incremental margins. Current ratio of 0.60x and quick ratio of 0.55x show limited short-term liquidity flexibility.
What is ROL's revenue and growth?
Rollins Inc. reported revenue of $906.4M.
Does ROL pay dividends?
Rollins Inc. pays dividends, with $87.8M distributed to shareholders in the trailing twelve months.
Where can I find ROL SEC filings?
Official SEC filings for Rollins Inc. (CIK: 0000084839) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ROL's EPS?
Rollins Inc. has a diluted EPS of $0.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ROL a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Rollins Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ROL stock overvalued or undervalued?
Valuation metrics for ROL: ROE of 7.8% (sector avg: 16%), net margin of 11.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ROL stock in 2026?
Our dual AI analysis gives Rollins Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ROL's free cash flow?
Rollins Inc.'s operating cash flow is $118.4M, with capital expenditures of $7.1M. FCF margin is 12.3%.
How does ROL compare to other Services stocks?
Vs Services sector averages: Net margin 11.9% (avg: 10%), ROE 7.8% (avg: 16%), current ratio 0.65 (avg: 1.5).