One-glance verdict
Within fair range
$40.04 our estimate vs market $34.23
Wall Street consensus: $45.59 (13.9% higher than our fair-value estimate)
15% below our estimate
Fundamentals snapshot
Rollins, Inc.
ROL · NYQ · Consumer Cyclical · Personal Services
Current price
$34.23
52-week range
$33.72 - $66.14
Market cap
$16.47B
Balance sheet
Watch
25.42x Strong cushion
Net debt $1.01B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.3% last year.
- Reward Returns 37.0% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 289.2% over 3 years.
What this company does
Rollins, Inc.
Rollins is one of the world's largest pest control companies, helping homeowners and businesses get rid of insects, rodents, and other unwanted pests. Because most customers pay for these services on a regular basis, the company enjoys strong recurring revenue (a predictable stream of income from ongoing contracts), which can make its business less sensitive to economic ups and downs.
How the company got here
Rollins began in 1948 not as a pest control company, but as Rollins Broadcasting, started by two brothers to advertise a car dealership. A major turning point came in 1964 when they bought Orkin Exterminating Company in what is considered the first leveraged buyout (a purchase made mostly with borrowed money) in U.S. history. After decades of operating various businesses, including home security and lawn care, the company decided to focus almost entirely on pest control in 1997. This focus has helped it grow into a global leader in the industry, now operating under many different brand names.
What it actually does
Rollins is in the business of getting rid of pests for both homes and businesses. Through well-known brands like Orkin, they provide services to protect against common pests like insects, mice, and termites. Think of them as the company you call when you have ants in the kitchen, suspect termites in the walls, or need to keep a restaurant or hospital pest-free. A large part of their business comes from recurring service agreements, where customers pay for ongoing protection and inspections rather than just a one-time treatment.
Residential Pest Control
This is the largest part of Rollins' business, making up about 45% of its sales. It focuses on providing pest control services directly to homeowners. This includes getting rid of common household pests like ants, spiders, and rodents, as well as offering specialized treatments for things like mosquitoes and bed bugs. Homeowners typically pay for a plan that includes an initial treatment and then regular follow-up visits to make sure the pests don't come back.
Commercial Pest Control
This segment provides pest control services to businesses and makes up about a third of the company's revenue. Their customers are in industries like food service, healthcare, hotels, and retail, where being pest-free is essential for health codes and reputation. These services are often customized to the specific needs of the business, focusing on prevention to avoid any infestations that could disrupt their operations. Businesses pay for these ongoing services to ensure they meet health and safety standards.
Termite and Ancillary Services
This part of the business, representing about a fifth of revenue, focuses on protecting properties from termites and offering other related home services. Termite damage can be very expensive and is often not covered by homeowner's insurance, so customers pay Rollins for inspection, prevention, and treatment services. This segment also includes other services like wildlife removal, mosquito control, and installing attic insulation. These are often sold to existing pest control customers to solve a wider range of home maintenance issues.
What management is betting on now
The company's main strategy is to keep growing by buying smaller, local pest control companies, a tactic they call "bolt-on" acquisitions. They are also focused on expanding their business in other countries, particularly in Asia and South America. Additionally, Rollins is investing in technology, like using data to plan more efficient routes for their technicians and developing more eco-friendly treatment options. The goal is to continue the steady growth they have achieved for many years by providing essential services that customers need regardless of the economic climate.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$139.43M
FY2024 Q4
$183.97M
FY2025 Q1
$140.11M
FY2025 Q2
$168.05M
FY2025 Q3
$182.85M
FY2025 Q4
$159.02M
FY2026 Q1
$111.23M
FY2026 Q2
$166.08M
Revenue
$1.08B
Net income
$143.91M
Diluted EPS
0.30
Operating cash flow
$172.51M
Free cash flow
$166.08M
Fetching…
Sources
Revenue
$906.42M
Net income
$107.84M
Diluted EPS
0.22
Operating cash flow
$118.37M
Free cash flow
$111.23M
Fetching…
Sources
Revenue
$912.91M
Net income
$116.44M
Diluted EPS
0.24
Operating cash flow
$164.74M
Free cash flow
$159.02M
Fetching…
Sources
Revenue
$1.03B
Net income
$163.53M
Diluted EPS
0.34
Operating cash flow
$191.35M
Free cash flow
$182.85M
Fetching…
Sources
Revenue
$999.53M
Net income
$141.49M
Diluted EPS
0.29
Operating cash flow
$175.12M
Free cash flow
$168.05M
Fetching…
Sources
Revenue
$822.50M
Net income
$105.25M
Diluted EPS
0.22
Operating cash flow
$146.89M
Free cash flow
$140.11M
Fetching…
Sources
Revenue
$832.17M
Net income
$105.67M
Diluted EPS
0.22
Operating cash flow
$188.16M
Free cash flow
$183.97M
Fetching…
Sources
Revenue
$916.27M
Net income
$136.91M
Diluted EPS
0.28
Operating cash flow
$146.95M
Free cash flow
$139.43M
Fetching…
Sources
Is it cheap or expensive?
Fair value $40.04 vs current price $34.23
Wall Street consensus is the average analyst price target: $45.59 (13.9% higher than our fair-value estimate).
Our most-likely fair value is $40.04 a share — about 17.0% away from today's price of $34.23, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.0B. Interest coverage 25.4x.
Net debt
$1.01B
Interest coverage
25.42x
Rollins, Inc.'s profit covers its interest bill about 25.4 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
ROL
BASELINE
Rollins, Inc.
Total debt $1.12B Interest coverage 25.42x This is the baseline the peer rows are being compared against.
Total debt $6.14B Interest coverage 2.63x -90% vs ROL Carries about 9.7x less debt cushion than ROL.
Total debt $13.92B Interest coverage 9.45x -63% vs ROL Carries about 2.7x less debt cushion than ROL.
Total debt $3.25B Interest coverage 3.99x -84% vs ROL Carries about 6.4x less debt cushion than ROL.
Total debt $14.30B Interest coverage 5.79x -77% vs ROL Carries about 4.4x less debt cushion than ROL.
Total debt $9.64B Interest coverage 5.44x -79% vs ROL Carries about 4.7x less debt cushion than ROL.
What you should know
The case for and against ROL
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.3% last year.
-
Returns 37.0% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 289.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
31.11x
Forward P/E
26.32x
P/B
11.52x
P/S
4.20x
EV/EBITDA
19.95x
PEG ratio
2.84x
Profitability
How much profit each dollar creates
Gross margin
52.4%
Operating margin
18.8%
Net margin
13.6%
ROE
37.0%
ROA
14.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.78x
Current ratio
0.63x
Quick ratio
0.42x
Total debt
$1.12B
Total cash
$109.08M
Growth
How the business has been compounding
Revenue TTM
$3.92B
Revenue 5Y CAGR
11.6%
EPS TTM
1.10
EPS 5Y CAGR
13.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$646.97M
Free CF TTM
$650.02M
FCF margin
16.6%
Dividend
Shareholder payout
Yield
2.2%
Payout ratio
64.9%
Last ex-div date
2026-08-10