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Reasons to Retain Rollins (ROL) Stock in Your Portfolio

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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 a company’s financial statements to get a true sense of the quality and sustainability of its growth. The company’s earnings for 2021 and 2022 are expected to improve 24.1% and 7.5%, respectively, year over year.Shares have gained 4.7% in the past month.

Factors That Auger Well

This leading pest and termite control services provider is benefiting from its balanced approach to organic and inorganic growth. The company’s revenues increased 11.4% in the third quarter of 2021, with acquisitions contributing 2.2% and organic growth contributing 9.2%. All of its business lines – residential, commercial and termite – are currently in good shape.

Rollins, Inc. Revenue (TTM)

Rollins, Inc. Revenue (TTM)

Rollins, Inc. revenue-ttm | Rollins, Inc. Quote

Rollins’ debt level has decreased quarter over quarter. Total debt at the end of third-quarter 2021 was $68 million, down from the $88 million recorded at the end of the prior quarter. The total debt to total capital ratio of 0.06 was lower than the previous quarter's 0.08. Lower debt-to-capitalization ratio indicates that the proportion of debt to finance the company’s assets is declining and so is the risk of insolvency. Further, cash and cash equivalent balance of $118 million at the end of the quarter was more than enough to meet the short-term debt of $19 million.

Some Risks

Rollins’ margin stayed pressed in the third quarter of 2021 due increase in labor- and fuel-related expenses. Adjusted EBITDA margin of 23.2% declined 60 basis points (bps) year over year.

Zacks Rank & Stocks to Consider

Interpublic currently carries a Zacks Rank #3 (Hold).

Investors interested in the broader Zacks Business Services sector can consider stocks like Avis Budget (CAR - Free Report) , Cross Country Healthcare (CCRN - Free Report)  and Accenture (ACN - Free Report) .

Avis Budget has an expected earnings growth rate of 9.4% for 2021. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 412.5% in the past year. It has a long-term earnings growth of 19.4%. CAR sports a Zacks #1 Rank (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cross Country Healthcare has an expected earnings growth rate of 500% for 2021. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 150.9% in the past year. It has a long-term earnings growth of 21.5%. CCRN sports a Zacks #1 Rank.

Accenture has an expected earnings growth rate of around 19.8% for the current year. It has a trailing four-quarter earnings surprise of 5.3%, on average.

Accenture’s shares have surged 46.7% in the past year. It has a long-term earnings growth of 10%. ACN sport a Zacks #1 Rank.


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