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In a remarkable display of market confidence, Rollins Inc (NYSE:ROL) stock has surged to an all-time high, reaching a price level of $56.28, with a substantial market capitalization of $27.2 billion. According to InvestingPro analysis, the company currently appears overvalued relative to its Fair Value, despite strong fundamentals including a 52.7% gross profit margin and 10.3% revenue growth. This peak punctuates a period of robust growth for the company, which has seen its stock value climb by an impressive 29.8% over the past year, including an 18.9% gain year-to-date. Investors have rallied behind Rollins Inc, propelling the stock to new heights and reflecting a strong endorsement of the company’s performance and future prospects. The achievement of this all-time high serves as a testament to Rollins Inc’s market resilience and the positive sentiment surrounding its business operations and strategic direction. Discover more detailed insights and 16 additional ProTips in the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Rollins Inc. reported its first-quarter 2025 earnings, meeting expectations with an earnings per share (EPS) of $0.22 and revenue of $823 million. The company achieved a year-over-year revenue growth of 9.9% and recorded a gross margin of 51.4%, the highest for a first quarter in its recent history. Rollins also reported operating cash flow of $147 million, up 15%, and free cash flow of $140 million, up 17% from the previous year. Despite these positive financial metrics, Rollins’ stock experienced a 2.6% decline in after-hours trading, which may be attributed to broader market trends or investor caution.
The company announced its acquisition of Sala Pest Control earlier in April, which is expected to add $45-50 million in revenue for 2025 and be accretive to earnings in the first full year. Analysts from William Blair noted that Rollins’ commercial business showed strong recurring revenue growth, close to 10%, driven by strategic investments. The company projects organic growth of 7-8% for the year, with additional growth from mergers and acquisitions expected to contribute 3-4%. Rollins remains focused on improving its margin profile and anticipates continued strong cash flow conversion above 100% for the year.
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