RollinsNYSE: ROL

Trading at 43 times free cash flow, most investors would dismiss the notion of buying Rollins. Here's why I'm happy to buy the steady-Eddie business after its recent dip.

I maintain my buy rating for ROL because of its strong organic growth, high demand, and successful strategies that are improving EBITDA margins. In the third quarter of 2024, the company reported a 7.7% increase in organic revenue, which was better than expected, although earnings per share fell short of consensus due to investments in growth. Even though there was a slight decrease in EBITDA margins for now, ROL's ability to set prices and improve operations should lead to better margins in the future.

I maintain a "Buy" rating for Rollins, Inc. with a target price of $65 per share, supported by strong growth and modernization initiatives. Despite challenges from Hurricane Helene, Rollins reported a 7.7% increase in organic revenue, demonstrating their strength and reliability. The company is concentrating on modernization, improving technology, and enhancing profit margins, expecting price hikes of 3%-4% and organic revenue growth of 7%-8% in FY24.

The main figures for Rollins (ROL) provide an overview of the company's performance for the quarter that ended in September 2024. However, it could be helpful to compare some important metrics with Wall Street predictions and the results from the same period last year.

ROL's revenues for the third quarter of 2024 have risen compared to the same period last year.

Rollins, Inc. (NYSE:ROL) will hold its Q3 2024 Earnings Conference Call on October 24, 2024, at 8:30 AM ET. The call will feature company representatives including Lyndsey Burton, Jerry Gahlhoff, and Kenneth Krause, along with participants from various financial firms. Currently, all attendees are in listen-only mode.

Rollins (ROL) reported quarterly earnings of $0.29 per share, which is slightly below the Zacks Consensus Estimate of $0.30 per share. In comparison, the company earned $0.28 per share during the same period last year.

ROL's revenues for the third quarter of 2024 are expected to have increased due to better performance in different areas.

The demand for ROL is still high in all of its business areas.