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Rollins - AI Stock Analysis

Analysis generated June 3, 2025

Rollins, Inc. is a premier global consumer and commercial services company. Founded in 1948, the company has a strong foothold in the pest control industry through its subsidiaries, including the well-known brand Orkin. Rollins operates internationally and provides essential services that ensure the health and safety of homes and businesses.

As a market leader, Rollins has shown resilience and adaptability over the years. The company's growth strategy includes organic growth via improved service offerings and strategic acquisitions, ensuring an expanding market footprint. With consistently high customer satisfaction and a legacy of reliability, Rollins remains a strong player in its sector.

Fundamental Analysis

Rollins' revenue for the last quarter was $823 million, a slight decrease of 1.16% compared to the previous quarter. While this short-term decline may cause concern, the year-over-year performance shows an increase of 9.91%, indicating positive growth despite recent setbacks.

The net income for the last quarter was $105 million, reflecting a decrease of 0.40% compared to the previous quarter. However, year over year, the net income has increased by 11.50%, showcasing the company's long-term profitability and operational efficiency.

EBITDA for the last quarter came in at $173 million, a decrease of 4.62% from the previous quarter. Year-over-year, the EBITDA rose by 8.02%, suggesting that while short-term profitability was affected, the company continues to improve its operational performance annually.

Rollins' current Price-to-Earnings (P/E) ratio stands at 57.83, which may be considered high. This could potentially indicate overvaluation and a bearish outlook on valuation metrics. Compounding this, insider selling in recent months may also be a bearish signal, as it could imply a lack of confidence among the company's leadership.

Technical Analysis

Today's stock price is $58.58, representing a 3.68% increase compared to a month ago, suggesting a positive short-term trend. Over the past year, the stock price has increased by 25.41%, indicating a strong long-term trend and a generally bullish trend in the market.

The current Simple Moving Average (SMA10) is 57.20, slightly higher than the previous SMA10 of 57.02. This indicates a potential upward trend in price movement.

However, the Relative Strength Index (RSI) stands at 78.3, which places the stock in overbought territory. This high RSI could signal a potential bearish condition as the stock may be overvalued and due for a pullback.

Alternative Data Analysis

Rollins has 508 job openings according to data from popular job boards, and this number has remained stable over the last few months. This stability suggests that the company is maintaining its workforce levels, reflecting a steady operational status.

The business outlook among employees at Rollins is neutral, indicating neither significant optimism nor pessimism about the company's future performance.

However, Rollins has seen a significant decline in estimated website visitors, with a drop of 61% over the last few months. This trend is concerning as it could indicate a potential reduction in customer interest or acquisition.

Similarly, Rollins has experienced a 7% decline in Twitter followers, indicating a loss of interest and engagement from its audience, which could reflect broader challenges in maintaining customer interest.

AltIndex's AI score for Rollins is 54, indicating a 'hold' signal based on a synthesis of fundamental, technical, and alternative data analysis.

Conclusion and Recommendation

In summary, Rollins shows strong long-term fundamentals, with positive year-over-year growth in revenue, net income, and EBITDA. The technical analysis indicates a bullish trend in the stock price, although caution is warranted due to the overbought RSI condition.

Alternative data provides a mixed outlook; while the company remains stable in its workforce, declining customer interest and engagement are areas of concern.

The high P/E ratio and recent insider selling also suggest a cautious approach. Considering all these factors, maintaining a 'hold' position is prudent as we watch for any improvement in customer engagement and short-term financial performance.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.