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Rollins, Inc. (ROL)

Company Dividend Discount ModelIndustry: Personal Products & ServicesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$24.98 - $66.26$38.20
Multi-Stage$17.85 - $19.46$18.64
Blended Fair Value$28.42
Current Price$58.74
Upside-51.62%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.14%14.68%0.620.550.440.430.330.320.320.250.220.19
YoY Growth--12.73%24.92%1.42%30.01%4.32%0.72%25.18%11.94%18.80%21.13%
Dividend Yield--1.14%1.19%1.16%1.23%0.96%1.32%1.13%1.11%1.36%1.57%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)515.94
(-) Cash Dividends Paid (M)319.48
(=) Cash Retained (M)196.46
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)103.1964.4938.70
Cash Retained (M)196.46196.46196.46
(-) Cash Required (M)-103.19-64.49-38.70
(=) Excess Retained (M)93.28131.97157.77
(/) Shares Outstanding (M)484.50484.50484.50
(=) Excess Retained per Share0.190.270.33
LTM Dividend per Share0.660.660.66
(+) Excess Retained per Share0.190.270.33
(=) Adjusted Dividend0.850.930.99
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$24.98$38.20$66.26
Upside / Downside-57.47%-34.97%12.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)515.94549.48585.19623.23663.74706.88728.09
Payout Ratio61.92%67.54%73.15%78.77%84.38%90.00%92.50%
Projected Dividends (M)319.48371.10428.08490.91560.09636.19673.48

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)336.96340.15343.35
Year 2 PV (M)352.94359.66366.45
Year 3 PV (M)367.50378.05388.80
Year 4 PV (M)380.72395.36410.42
Year 5 PV (M)392.66411.63431.32
PV of Terminal Value (M)6,816.617,145.857,487.70
Equity Value (M)8,647.389,030.709,428.03
Shares Outstanding (M)484.50484.50484.50
Fair Value$17.85$18.64$19.46
Upside / Downside-69.62%-68.27%-66.87%

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