Rollins, Inc. (ROL) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Rollins, Inc.

Updated on October 22, 2026 · accounts published on October 21, 2026

A highly profitable business that turns its earnings into cash

Rollins trades at a P/E of 31.8 over the last 12 months, 44 % below its ten-year median of 56.9. It has traded lower only 1 % of the decade.

• Is Rollins expensive or cheap? At a P/E of 31.8, Rollins has traded lower only 1 % of the past decade, yet it sits 23 % above its sector median.
• How is the business doing? Revenue grew 11 % and EPS 14 % over the last 12 months, with ROIC of 20 % against a sector median of 9 %.
• How strong is the balance sheet? Net debt is 1.1× EBITDA in fiscal 2025, and the dividend has risen for 11 straight years, now yielding 2.2 %.
• Does Rollins turn its margin into cash, and at what multiple of the cycle does it trade? Free cash flow was 123 % of net income in fiscal 2025, and EV/EBITDA of 20.5 is well below its seven-year average of 32.8.
• What to expect from the next earnings? Next results are due February 10, 2027, with $0.28 EPS expected and a fiscal 2026 consensus steady at $1.16 for 30 days.

Is Rollins expensive or cheap?

Rollins trades at a P/E of 31.8 over the last 12 months. That is 44 % below its ten-year median of 56.9 and close to the decade low of 27.6. The multiple fell with the share price, which is down 39 % over the last 12 months and 47 % below its 52-week high of $65.60. EV/EBITDA of 20.5 compares with a seven-year average of 32.8. Being cheap against its own history does not make it cheap in absolute terms. The P/E is still 23 % above the median of 298 sector peers, the earnings yield is 2.8 % and the free cash flow yield is 3.4 %.

How is the business doing?

Growth held up over the last 12 months: revenue rose 11 % and EPS 14 %, so earnings are still growing faster than sales. The operating margin of 18.3 % is slightly below the 19.4 % of fiscal 2025 and the 18.9 % average for 2014-2025. That points to a stable margin, not a rising one. Returns stand out more. ROIC of 20 % over the last 12 months is 11 points above the sector median of 9 %, and it has stayed above 10 % in each of the last ten fiscal years. ROE reaches 38 %, helped partly by debt on the balance sheet.

How strong is the balance sheet?

Debt is moderate. Net debt equals 1.1× EBITDA in fiscal 2025, well under the 3.0× that counts as healthy for industrials. It works out to $2.00 per share, about 6 % of the current price. Debt to equity is 0.81, and the Altman Z of 12.0 over the last 12 months sits deep in the safe zone above 2.99. The weak spot is short-term liquidity: a current ratio of 0.62 means short-term liabilities exceed short-term assets. Shareholders get a 2.1 % yield, and the dividend per share has grown for 11 consecutive fiscal years. The 62 % payout in fiscal 2025 leaves limited room for faster increases.

Does Rollins turn its margin into cash, and at what multiple of the cycle does it trade?

Industrials are semi-cyclical, so the sector is judged on operating margin, cash conversion and multiples measured against a full cycle instead of a single year. Rollins passes on cash: free cash flow equalled 123 % of net income in fiscal 2025, above the 85 % healthy threshold. It fails the capex test from below, spending 0.7 % of revenue against a 4 % to 8 % range. Here that means the business needs little reinvestment. Against the cycle, the P/E of 31.8 compares with a ten-year fiscal average of 58.5, and EV/EBITDA of 20.5 with 32.8. Both are under the 90 % mark that counts as cheap against its own history.

What to expect from the next earnings?

The October 21, 2026 report delivered EPS of $0.34, 1.4 % short of the $0.34 expected, so essentially in line. That fits the record: Rollins has beaten EPS estimates in only 2 of the last 8 quarters. Estimates are steady. The fiscal 2026 EPS consensus from 11 analysts stayed at $1.16 over the last 30 days, and revenue estimates barely changed. For the quarter due February 10, 2027, analysts expect EPS of $0.28. Sentiment is lukewarm: of 22 analysts, 6 recommend buying, 14 holding and 2 selling.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.