May 02, 2025 a 11:31 am
ROL: Dividend Analysis - Rollins, Inc.
Rollins, Inc. has maintained a solid dividend track record, exhibiting over four decades of consistent dividend payouts. With a current dividend yield of approximately 1.15%, shareholders benefit from stable income alongside potential capital appreciation. Despite a moderate dividend yield, the company showcases steady dividend growth, solidifying its reputation as a reliable dividend-payer.
📊 Overview
| Attribute | Details |
|---|---|
| Sector | Unknown |
| Dividend Yield | 1.15 % |
| Current Dividend per Share | 0.615 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | None |
🔄 Dividend History
The long-standing dividend history of Rollins, Inc. highlights its commitment to returning capital to shareholders. Understanding this consistency helps assess future payout reliability, crucial for income-focused investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.330 |
| 2024 | 0.615 |
| 2023 | 0.54 |
| 2022 | 0.43 |
| 2021 | 0.42 |
📈 Dividend Growth
Dividend growth for Rollins, Inc. over the past three years is 13.56% and 14.44% over five years, demonstrating a steady upward trend. Such growth is indicative of robust financial health and management's confidence in future earnings potential.
| Time | Growth |
|---|---|
| 3 years | 13.56 % |
| 5 years | 14.44 % |
The average dividend growth is 14.44% over 5 years. This shows moderate but steady dividend growth.
💰 Payout Ratio
Understanding the payout ratio provides insight into the sustainability of dividend payments. Rollins, Inc.'s EPS payout ratio is 62.46%, whereas its Free Cash Flow payout ratio is 49.71%. These figures suggest a sound balance between ensuring shareholder payouts and retaining capital for reinvestment opportunities.
| Key Figure | Ratio |
|---|---|
| EPS-based | 62.46 % |
| Free cash flow-based | 49.71 % |
The EPS payout ratio of 62.46% and FCF payout ratio of 49.71% reflect a prudent payout strategy, balancing dividends with growth potential reinvestments.
📊 Cashflow & Capital Efficiency
Cashflow analysis is essential to understanding liquidity and financial flexibility, as well as the company's ability to sustain and grow dividends. Rollins, Inc.'s robust earnings yield and consistent Free Cash Flow to Operating Cash Flow Ratio underscore its efficient capital allocation strategies.
| Measure | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.58 % | 2.32 % | 2.42 % |
| Earnings Yield | 2.08 % | 2.03 % | 2.05 % |
| CAPEX to Operating Cash Flow | 4.54 % | 6.14 % | 6.57 % |
| Stock-based Compensation to Revenue | 0 % | 0.80 % | 0.79 % |
| Free Cash Flow / Operating Cash Flow Ratio | 95.46 % | 93.86 % | 93.43 % |
The healthy free cash flow coverage and low stock-based compensation depict strong capital management and operational efficiency.
🏦 Balance Sheet & Leverage Analysis
Assessment of the balance sheet and leverage provides a snapshot of the company's financial stability, liquidity, and ability to meet obligations. Rollins, Inc. displays a balanced debt structure, supporting its long-term investments and operational strategy.
| Measure | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.61 | 0.71 | 0.27 |
| Debt-to-Assets | 0.29 | 0.31 | 0.16 |
| Debt-to-Capital | 0.38 | 0.41 | 0.21 |
| Net Debt to EBITDA | 0.94 | 1.01 | 0.41 |
| Current Ratio | 0.87 | 0.71 | 0.71 |
| Quick Ratio | 0.69 | 0.65 | 0.65 |
| Financial Leverage | 2.12 | 2.25 | 1.67 |
The company maintains financial flexibility with moderate leverage and strong liquidity ratios, underpinning its resilience against market volatility.
🔍 Fundamental Strength & Profitability
Fundamental assessment allows investors to gauge profitability and efficiency. With consistent ROE and solid margins, Rollins, Inc. presents a compelling case for continued shareholder value creation.
| Measure | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 35.05 % | 37.64 % | 29.09 % |
| Return on Assets | 16.54 % | 16.76 % | 17.37 % |
| Net Margin | 13.76 % | 14.15 % | 13.67 % |
| EBIT Margin | 19.41 % | 19.70 % | 18.30 % |
| EBITDA Margin | 22.76 % | 22.94 % | 21.69 % |
| Gross Margin | 52.69 % | 52.17 % | 51.47 % |
| R&D to Revenue | 0 % | 0 % | 0 % |
The impressive Return on Equity and expanding margins emphasize the company's robust operational efficacy and commitment to maximizing shareholder returns.
📉 Price Development
✅ Dividend Scoring System
| Criterion | Description | Score |
|---|---|---|
| Dividend Yield | Moderate yield supporting stable returns. | 2.5/5 |
| Dividend Stability | Over 40 years of dividend payment. | 4/5 |
| Dividend Growth | Consistent growth over medium term. | 3.5/5 |
| Payout Ratio | Balanced payout ratios. | 3/5 |
| Financial Stability | Strong financial position. | 3.5/5 |
| Dividend Continuity | No cuts or suspensions recently. | 4.5/5 |
| Cashflow Coverage | Effective cashflow management. | 3.75/5 |
| Balance Sheet Quality | Solid leverage and liquidity metrics. | 4/5 |
Total Score: 28.75/40
🗣️ Rating
Rollins, Inc. is a solid investment choice for those seeking a combination of stable dividends and moderate growth. While the yield is not excessively high, it is well-supported by consistent earnings and robust financials, making it a reliable addition to any income-focused portfolio.