company profile of rollins inc

7/28/2019 Company Profile of Rollins Inc

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COMPANY PROFILE:

Rollins Inc.2170 Piedmont Road, NEAtlanta, GA 30324United States - Map

Phone: 404-888-2000Fax: 404-888-2662Website: http://www.rollins.com

Rollins, Inc. is a premier North American consumer and commercial services company.

Through its wholly owned subsidiaries, Orkin, LLC., Home Team Pest Defense, Western Pest

Services, Orkin Canada, The Industrial Fumigant Company, Waltham Services LLC., Crane Pest

Control and TruTech LLC., the company provides essential pest control services and protection

against termite damage, rodents and insects to more than 2 million customers in the United

States, Canada, Central America, South America, the Caribbean, the Middle East, Asia, the

Mediterranean, Europe, Africa and Mexico from more than 500 locations.

COMPETITORS NAME;

ECL= Ecolab Inc

RTOKY= Rentokil Initial plc

Pvt1 = The Terminix International Company L.P. (privately held)

Industry= Business Services
http://us.rd.yahoo.com/finance/profile/map/*http:/maps.yahoo.com/maps_result?addr=2170%20Piedmont%20Road,%20NE&csz=Atlanta%20GA%2030324&country=United%20Stateshttp://www.rollins.com/http://finance.yahoo.com/q?s=ECLhttp://finance.yahoo.com/q?s=ECLhttp://finance.yahoo.com/q?s=RTOKYhttp://finance.yahoo.com/q?s=RTOKYhttp://biz.yahoo.com/ic/138/138690.htmlhttp://finance.yahoo.com/q/in?s=ROLhttp://finance.yahoo.com/q/in?s=ROLhttp://finance.yahoo.com/q/in?s=ROLhttp://biz.yahoo.com/ic/138/138690.htmlhttp://finance.yahoo.com/q?s=RTOKYhttp://finance.yahoo.com/q?s=ECLhttp://www.rollins.com/http://us.rd.yahoo.com/finance/profile/map/*http:/maps.yahoo.com/maps_result?addr=2170%20Piedmont%20Road,%20NE&csz=Atlanta%20GA%2030324&country=United%20States


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Income Statement

All numbers in thousand


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Balance Sheet



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Cash Flow Statement


Summary:

Net Income:

Net income of the Rollins Inc. is increased by the $100,711,000 to $111,332,000 in the

year of December 2011 to December 2011. So the net income indicates good sign.

Operating activities:

Changes in accounts receivables has increased in 2012 compared to 2011 and 2010. This

means the company is having trouble collecting money which is owed to it. On the other hand,changes in liabilities have gone down which means company is paying of its creditors- a sign of

goodwill for the company. Inventories have risen from 2011, it is a sign of trouble, it means

demand is softening and holding cost has increased. Total change in operating cash flow

decreased from 2011 and indicates danger


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Investing Activities (Positive sign):

Investing activities have increased over the years, which is good indication that it shows

the company has spent on new equipments or anything else that needed to keep the business

going. It also includes acquisitions of other businesses and monetary investments such as money

market funds. Overall, the Investing activities are giving a favorable sign. Secondly, company is

re-investing capital in its business at close pace with the rate of depreciation each year which is

another

Financing Activities (Positive sign):

Dividends payout increased over the years. It is a good indication- happy stockholder.

There was no cash inflow from bank borrowings after 2011, which indicates that the dividend

were paid out from the profit and from the money collected from sales of shares.


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Ratio Analysis:

Title of Ratio Elements 2012 2011 Formula

Net profit

margin

Net Income 111,332,000 100,711,000

Net Income/TotalSales

Total Sales 1,270,909,000 1,205,064,000

0.0876 0.0836

Debt ratio Total Debt 0 0 Total Debt/Total

AssetsTotal Assets 692,506,000 645,650,000

0 0

Current Ratio Current Assets 205,992,000 175,822,000 Current Assets/

Current

LiabilitiesCurrent Liabilities 228,416,000 225,851,000

0.9018 0.7785

Return on

equity

Net Income 111,332,000 100,711,000 Net Income/

Total EquityTotal Equity 354,956,000 323,997,000

0.3137 0.3108

Market to

book ratio

Market Price Per

Share

22.04 22.22 Market Price Per

Share/ BookValue Per Share

Book Value Per

Share

2.43 2.22

9.07 10.01


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Title Elements Data Formula Status

Required rate of return

(K)

Risk free rate (rf) 0.15

k=rf+b(rm-rf)

Current price is$24.55

Undervalued

Beta 0.85

Market Return (rm) 0.18

Required Return 0.18

Growth (g)Return on Equity 0.31

g=ROE*RRRetention Ratio (RR) 0.53

Growth Rate (g) 0.16

Stock Valuation

D 0.36

D(1+g)^t/k-g(1+g)^t 1.16

K-g 0.02

Value of the stock 27.84

Relative pricing theory

(P/E)

Industry P/E 36.5

RP/EPS=P/E

(industry)Undervalued

Net inacome $111,332,000

Share Outstanding 146,293,000

EPS 0.77


Relative pricing theory

(P/S)

Industry P/S 0.45

RP/Sales

price=P/S

(industry)

Overvalued

Total Sales 1,270,909,000


Sales Price 8.69


Reltive Pricing (P/B)

Industry P/B 2.12

RP/Book value

per sahre= P/B

(industry)

Overvalued

Total Stockholders Equity 354,956,000


Book value per sahre 2.4


Relative Pricing (P/CF)

Industry P/CF 14.84RP/Change in

cash

equivalent=P/CF

(industry)

Overvalued

Change in cash equivalent 18,807,000


Cash flow 0.84


company profile of rollins inc

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