Will Weakness in Rollins, Inc.'s (NYSE:ROL) Stock Prove Temporary Given Strong Fundamentals?
Will Weakness in Rollins, Inc.'s (NYSE:ROL) Stock Prove Temporary Given Strong Fundamentals?
With its stock down 11% over the past three months, it is easy to disregard Rollins (NYSE:ROL). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Rollins' ROE in this article.
然而，仔细看看它稳健的财务状况可能会让你重新考虑。鉴于基本面因素通常会推动长期市场结果，该公司值得关注。具体地说，我们决定在本文中研究罗林斯的净资产收益率。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回报率或净资产收益率是股东要考虑的一个重要因素，因为它告诉他们他们的资本再投资的效率。换句话说，它揭示了该公司成功地将股东投资转化为利润。
Check out our latest analysis for Rollins
查看我们对罗林斯的最新分析
How To Calculate Return On Equity?
如何计算股本回报率？
Return on equity can be calculated by using the formula:
股本回报率可使用以下公式计算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率=(持续经营的)净利润？股东权益
So, based on the above formula, the ROE for Rollins is:
因此，根据上面的公式，罗林斯的净资产收益率为：
37% = US$410m ÷ US$1.1b (Based on the trailing twelve months to September 2023).
37%=4.1亿美元×11亿美元(基于截至2023年9月的12个月)。
The 'return' is the yearly profit. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.37 in profit.
“回报”就是年度利润。另一种说法是，公司每持有价值1美元的股票，就能赚取0.37美元的利润。
Why Is ROE Important For Earnings Growth?
为什么净资产收益率对收益增长很重要？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前为止，我们已经了解到净资产收益率衡量的是一家公司创造利润的效率。根据公司选择再投资或“保留”多少利润，我们就能够评估一家公司未来产生利润的能力。假设其他条件不变，净资产收益率和利润保留率越高，与不一定具有这些特征的公司相比，公司的增长率就越高。
Rollins' Earnings Growth And 37% ROE
罗林斯的收益增长和37%的净资产收益率
Firstly, we acknowledge that Rollins has a significantly high ROE. Additionally, the company's ROE is higher compared to the industry average of 8.6% which is quite remarkable. This probably laid the groundwork for Rollins' moderate 15% net income growth seen over the past five years.
首先，我们承认罗林斯拥有相当高的净资产收益率。此外，该公司的净资产收益率(ROE)高于8.6%的行业平均水平，这是相当了不起的。这可能为罗林斯在过去五年中实现15%的净利润温和增长奠定了基础。
As a next step, we compared Rollins' net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 11%.
作为下一步，我们将罗林斯的净收入增长与行业进行了比较，令人欣喜的是，我们发现该公司看到的增长高于行业平均11%的增长。
Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is ROL worth today? The intrinsic value infographic in our free research report helps visualize whether ROL is currently mispriced by the market.
盈利增长是股票估值的一个重要因素。对于投资者来说，重要的是知道市场是否已经消化了公司预期的收益增长(或下降)。通过这样做，他们将知道股票是将进入清澈的蓝色水域，还是等待沼泽水域。ROL今天值多少钱？我们免费研究报告中的内在价值信息图有助于直观地了解ROL目前是否被市场错误定价。
Is Rollins Making Efficient Use Of Its Profits?
罗林斯是否在有效利用其利润？
While Rollins has a three-year median payout ratio of 52% (which means it retains 48% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow.
虽然罗林斯三年的派息率中值为52%(这意味着它保留了48%的利润)，但该公司过去的收益仍有相当大的增长，这意味着它的高派息率并没有阻碍其增长能力。
Moreover, Rollins is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 62%. As a result, Rollins' ROE is not expected to change by much either, which we inferred from the analyst estimate of 38% for future ROE.
此外，罗林斯决心继续与股东分享利润，这是我们从其支付股息的长期历史中推断的至少十年。我们最新的分析师数据显示，该公司未来三年的派息率预计约为62%。因此，罗林斯的净资产收益率预计也不会有太大变化，这是我们从分析师对未来净资产收益率的38%的估计中推断出来的。
Conclusion
结论
On the whole, we feel that Rollins' performance has been quite good. In particular, its high ROE is quite noteworthy and also the probable explanation behind its considerable earnings growth. Yet, the company is retaining a small portion of its profits. Which means that the company has been able to grow its earnings in spite of it, so that's not too bad. We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
总的来说，我们觉得罗林斯的表现相当不错。特别是，其高净资产收益率相当值得注意，也是其可观收益增长背后的可能解释。然而，该公司保留了一小部分利润。这意味着，尽管如此，该公司仍能实现收益增长，所以这并不是太糟糕。我们还研究了最新的分析师预测，发现该公司的收益增长预计将与目前的增长速度相似。这些分析师的预期是基于对该行业的广泛预期，还是基于该公司的基本面？点击此处进入我们分析师对该公司的预测页面。
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本文由Simply Wall St.撰写，具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论，我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议，也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意，我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。