Start here if you're new
what it is
Rollins gets rid of pests for homes and businesses, mostly through the Orkin brand.
how it gets paid
Last year Rollins made $3.8B in revenue. Residential pest control was the main engine at $1.71B, or 45% of sales.
why it's growing
Revenue grew 11.0% last year. Demand from residential and commercial customers should remain solid.
what just happened
Rollins posted $0.24 EPS, just below the $0.25 estimate, a small miss in a stock priced for smooth execution.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
90/100 earnings predictability — you can trust these numbers
55.2x trailing p/e — you're paying up for this one
1.3% dividend yield — cash in your pocket every quarter
26.5% return on capital — every dollar works hard here
xvary composite: 67/100 — average
What they do
Rollins gets rid of pests for homes and businesses, mostly through the Orkin brand.
Over 500 locations put an Orkin truck near your house fast. That matters when you want the bugs gone today, not next week. Scale (lots of branches) → faster routes and lower service costs → so what: you call the brand that can actually show up, and that network still produces a 24.0% operating margin and 26.5% return on capital.
How they make money
$3.8B
annual revenue · their business grew +11.0% last year
Residential pest control
$1.71B
Commercial pest control
$1.37B
Termite services
$0.57B
Other services
$0.15B
The products that matter
residential and commercial extermination
Pest Control Services
$3.8B revenue · +11.0% growth
it is the entire $3.8B business. the appeal is recurring service revenue paired with a 14.9% net profit margin, which is better than most route-based service companies manage.
100% of revenue
Key numbers
55.2x
trailing p/e
P/E (price-to-earnings) → how much you pay for each dollar of profit → so what: you are paying a luxury multiple for a pest-control company.
24.0%
operating margin
Operating margin → profit after running the business → so what: Rollins turns about $0.24 of every sales dollar into operating profit.
26.5%
return on capital
Return on capital → profit earned on money invested in the business → so what: this is a high-quality operator, not just a pricey stock.
$5.0B
2029 revenue
Management's revenue path points to about $5B by 2029 from $3.8B today, which is growth, just not hyper-growth.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $486M (2% of capital)
- net profit margin 15.9% — keeps 16 cents of every dollar in revenue
- return on equity 28% — $0.28 profit for every $1 investors have put in
B++ with risk rank and net profit margin standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in ROL 3 years ago → it's now worth $18,290.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Rollins posted $0.24 EPS, just below the $0.25 estimate, a small miss in a stock priced for smooth execution.
Consensus shows a 4.0% earnings miss on the latest report. The bigger picture still looks solid, with annual revenue at $3.8B, up 11.0% vs. prior year.
$3.8B
revenue
$0.24
eps
24.0%
gross margin
the number that mattered
The key number was the $0.24 EPS miss versus the $0.25 estimate, because premium stocks priced at 55.2x earnings rarely get much forgiveness.
-
rollins probably closed 2025 with solid top- and bottom-line results.the company likely continued to benefit from healthy demand across its residential, commercial, and termite & ancillary segments, as reflected in its strong performance through the first nine months of 2025. rollins’ business operations support system, known as boss, probably played a notable role by driving cost efficiencies through route optimization and reducing technician driving time. in addition, the acquisitions of saela pest control and fox pest control last year have expanded the geographic footprint and strengthened its high-margin commercial operations. in all, rollins likely posted double-digit growth in full-year revenue and share earnings, respectively.
-
positive momentum is expected to carry into 2026.demand from residential and commercial customers should remain solid, particularly for seasonal rodent control services during the winter months, followed by increased termite and insect activity that typically provides a summer tailwind.
-
the company’s consumer price index strategy, which targets annual price increases of 3% to 4% to offset inflationary pressures, should support margin expansion, as cost pressures moderate.also, the repurchase of nearly 3.5 million shares in the november 2025 secondary offering is expected to provide additional lift to per-share profitability.
-
all told, we estimate 2026 share earnings will advance 13%, vs. prior year, to $1.30.
-
we are introducing our estimates for 2027.rollins benefits from a resilient business model that remains mostly insulated from macroeconomic volatility.
source: company earnings report, 2026
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What could go wrong
the #1 risk is valuation outrunning execution. at 55.2x trailing earnings, Rollins does not need a disaster to disappoint you. It just needs growth to look more ordinary.
med
the stock is priced for consistency
Rollins grew revenue 11.0% last year and full-year EPS reached $1.15. Good numbers. The problem is the market is already paying 55.2x for them.
If growth cools while the multiple stays elevated, the stock can de-rate even if the business remains healthy.
med
Saela and Fox still need to earn their keep
Recent acquisitions expanded geography and commercial density. That is the point. The risk is that integration adds cost before it adds enough productivity.
On a 14.9% net margin business, execution slippage shows up quickly in per-share earnings.
med
3%–4% annual price increases need customer tolerance
Management's pricing strategy helps offset inflation. It works until it does not. Pest control is sticky, but not every customer accepts higher prices forever.
If price sticks less than expected, the path from $1.15 in 2025 EPS to $1.30 in 2026 gets harder.
On a $3.8B revenue base with a 55.2x trailing p/e, this is less about existential risk and more about whether execution stays clean enough to justify the premium.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
can 11.0% revenue growth stay near double digits
That is the first line of defense for a stock trading at 55.2x trailing earnings.
trend
the path from $1.15 to $1.30 EPS
The 2026 estimate implies 13% earnings growth. If you stop seeing that pace, the valuation conversation changes fast.
risk
whether 3%–4% pricing keeps sticking
Price increases help defend margins. They also test just how defensive this customer base really is.
calendar
post-acquisition operating updates
Saela and Fox were part of the recent growth story. Upcoming results should tell you whether that growth is scaling cleanly.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a strong short-term edge either way.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. this is a premium-priced stock, not a fragile one.
chart momentum
average
technical score 3 — the chart is behaving normally, with no unusual momentum signal.
earnings predictability
90 / 100
management delivers unusually steady numbers. that consistency is a big reason the stock gets a premium multiple.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 393 buyers vs. 325 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$55
$79
$64
current price
$67
target midpoint · +5% from current · 3-5yr high: $90 (+40% · 10% ann'l return)
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