Rollins Stock Fair Value Calculation – ROLLINS Reports Record Earnings for Q2 FY 2023
August 3, 2023
🌥️Earnings Overview
On July 26 2023, ROLLINS ($NYSE:ROL) reported their financial results for the second quarter of the fiscal year 2023 ending June 30 2023. The total revenue for the quarter was USD 820.8 million, indicating a 14.9% year-on-year increase. Additionally, net income rose to USD 110.1 million, resulting in a 9.8% jump from the same period in the previous year.
Market Price
On Wednesday, ROLLINS Inc. reported record earnings for the second quarter of FY 2023, with their stock opening at $44.6 and closing at $44.8, only down by 0.1% from its prior closing price of 44.8. This marks a remarkable improvement in ROLLINS’ performance since the beginning of the year and is reflective of their strong and consistent financial performance. ROLLINS attributed this growth to increased market share in key sectors, including technology, healthcare, and consumer goods, as well as ongoing cost-saving initiatives across the organization.
These impressive results are just the latest in a string of positive financial reports from ROLLINS Inc., which has consistently outperformed expectations and grown its market share in recent quarters. With their strong balance sheet, significant cash flow, and consistent growth, ROLLINS is well positioned to continue its success going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rollins. ROLLINS_Reports_Record_Earnings_for_Q2_FY_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 2.87k | 394.23 | 13.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rollins. ROLLINS_Reports_Record_Earnings_for_Q2_FY_2023″>More…
| Operations | Investing | Financing |
| 499.3 | -403.73 | -165.18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rollins. ROLLINS_Reports_Record_Earnings_for_Q2_FY_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.6k | 1.26k | 2.72 |
Key Ratios Snapshot
Some of the financial key ratios for Rollins are shown below. ROLLINS_Reports_Record_Earnings_for_Q2_FY_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.9% | 16.9% | 19.0% |
| FCF Margin | ROE | ROA |
| 16.4% | 26.0% | 13.1% |
Analysis – Rollins Stock Fair Value Calculation
GoodWhale has conducted an analysis of ROLLINS‘s financials, and determined that ROLLINS’s intrinsic value is around $42.4. This value was calculated using our proprietary Valuation Line. Currently, the market price of ROLLINS stock is $44.8, meaning it is slightly overvalued by 5.7%. Therefore, we recommend investors to be careful when considering investing in ROLLINS stock. More…
Peers
It is the largest pest control company in the world with a network of over 8,000 franchisees and company-owned branches. Rollins Inc competes with Carnival PLC, Carnival Corp, Regis Corp, and other pest control companies in the global market.
– Carnival PLC ($LSE:CCL)
Carnival plc is a leisure travel company. The Company operates through segments, which include North America, Europe, Asia, Australia & New Zealand and Cruise Support. Its North America segment includes Carnival Cruise Line, Princess Cruises (Princess), Holland America Line and Seabourn. Its Europe segment includes AIDA Cruises (AIDA), Costa Cruises (Costa), Cunard, P&O Cruises (Australia) and P&O Cruises (UK). Its Asia segment includes Costa Asia and Princess Asia. Its Australia & New Zealand segment includes P&O Cruises (Australia) and Carnival Australia. Its Cruise Support segment provides port agent and related services to third-party cruise lines operating in the ports served by its port destinations business, as well as other ancillary services. As of February 28, 2017, the Company operated a fleet of 100 ships across 10 cruise line brands.
– Carnival Corp ($NYSE:CCL)
Carnival Corporation is a cruise company with a market cap of $11.26 billion as of 2022. The company has a return on equity of -42.02%. Carnival Corporation operates a fleet of cruise ships and is headquartered in Miami, Florida. The company was founded in 1972 and is publicly traded on the New York Stock Exchange under the ticker symbol CCL.
– Regis Corp ($NYSE:RGS)
Regis Corporation is a leader in the haircare industry, with over 10,000 locations around the world. The company has a market cap of 49.16M as of 2022 and a Return on Equity of 196.83%. Regis Corporation is a publicly traded company on the New York Stock Exchange (NYSE: RGS).
Summary
Investors have been encouraged by ROLLINS‘ second quarter 2023 financial performance, as the company reported total revenue of USD 820.8 million, a 14.9% increase from the same period in the prior year. Net income also increased, coming in at USD 110.1 million for the quarter, a 9.8% year-over-year improvement. Analysts see this as a positive sign for the company and have remained bullish on their stock. With the recent earnings report, there are increasing hopes that ROLLINS will continue to deliver strong growth in the future.
