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Rollins, Inc.
S&P 500
$16.7B
Market Cap
55.1
P/E
3.38
PEG
25.1%
ROCE
38.9%
ROE
0.76
D/E
19.4%
OPM
-46.5%
% from 52W High
15
α RS
🔍 ROL is showing a high-conviction setup because it matches 12 of 39 tracked screener presets and fcf_machines preset's Backtest win rate is 57.2% over 90 days. Net: Partial signal stack, not a recommendation. ? Conviction Backtest
Sources
Conviction 12/39 · Backtest win rate 57.2%
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🌏 Global Investor Returns
Currency-adjusted total returns for ROL including FX impact
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📈 Price History
Ratio Health
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About

Rollins, Inc., through its subsidiaries, provides pest and wildlife control services and protection to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, food service, and logistics. In addition, the company offers termite protection and ancillary services for both residential and commercial customers. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.

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📈 Growth Pattern
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⭐ Superinvestors Holding ROL
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 1.94M $103.4M 0.16% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Cautious ~ Volatile 5 quarters Full tone analysis in Intelligence →
Weak quarter Investor Presentation One-Pager? Q2 2026
Revenue
$1.08B
+7.9% YoY
Operating Income
$201M
+1.5% YoY
Operating Margin
18.7%
-1.1pp YoY
Net Income
$144M
+1.7% YoY
What Went Right
  • Commercial pest control grew 8.6% and termite/ancillary grew 10.5% in Q2.
  • Relationship-driven brands outperformed: HomeTeam grew double-digit, Fox grew high-teens organically.
  • Operating cash flow was $173M and free cash flow $166M, with FCF conversion above 115%.
What to Watch
  • Organic growth missed at 5.7%, with residential organic growth of only 3.6%.
  • One-time pest volumes turned negative mid-single digits; lead flow was weak through May and part of June.
  • Full-year incremental margin guidance was cut to at least 10%, with improvement Q4-weighted and a tough Q3 comp.
Management Guidance
  • Full-year organic growth of at least 6% (revised lower).
  • Full-year incremental margins of at least 10% (revised lower), with back-half improvement weighted to Q4.
  • M&A to contribute 2%-3% revenue growth; FCF conversion above 100%; effective tax rate under 25%.
Investor Lens
The near-term thesis is weaker: Q2 missed, guidance was cut, and management could not isolate a single cause for the residential lead slowdown. That said, the portfolio is not uniform—commercial, termite, and relationship-based brands grew well, and lead flow improved late June into July. Underlying retention and pricing held, and the long-term 7%+ organic / 30%+ incremental margin targets were reaffirmed. It's a 'wait for quarterly proof of recovery' stock rather than one with broken fundamentals.
From investor presentation · AI-generated analysis · Not investment advice
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📉 WEAK Weak Q2: organic +5.7%, residential slowdown pressures results
Revenue
Q2 revenue came in at $1.08B, up 7.9% YoY, but organic growth was 5.7%, below expectations. Residential revenue rose 6.6%, commercial 8.6%, and termite/ancillary 10.5%; organic growth was 3.6%, 7.2%, and 8.9%, respectively.
Profitability
GAAP net income was $144M, up 1.7% YoY, with EPS of $0.30. Adjusted net income was $152M and adjusted EPS was $0.32, up 6.7% YoY.
Margins
Gross margin declined 100bps to 52.8%; adjusted operating margin fell 110bps to 19.5%; adjusted EBITDA margin fell 120bps to 21.9%. Medical costs (~70bps) and fuel (~20bps) were the main margin headwinds.
Balance Sheet
Operating cash flow was $173M and free cash flow $166M, with FCF conversion above 115%. The company spent $117M on acquisitions, paid $88M in dividends, and ended the quarter with leverage around 1x.
Key Risks
Residential lead volumes deteriorated through the quarter and one-time pest demand was negative mid-single digits. Management could not pinpoint a single driver, citing weather, consumer confidence, and possible LLM/AI-driven changes in searches. Q3 faces a difficult prior-year comp, and fuel and medical costs remain headwinds.
Outlook
FY26 organic growth is now expected to be at least 6%, with incremental margins of at least 10% and Q4-weighted improvement. Management noted lead flow has improved late June into early July but remained cautious on near-term trends.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-23
Second quarter revenue grew 7.9% year-over-year, but residential digital demand lagged, impacting results. Recurring revenue and commercial segments remained strong, while one-time services and margins faced headwinds from lower pest pressure and higher costs. Full-year organic growth is now expected at least 6%.
Q1 2026 Q1 2026 2026-04-23
Q1 2026 saw 10.2% revenue growth and 6.6% organic growth, with strong March acceleration and broad-based gains across all segments. Margins faced headwinds from insurance and claims, but outlook remains positive with expected margin improvement and robust cash flow conversion.
Q4 2025 Q4 2025 2026-02-12
Revenue grew 11% to $3.8B in 2025, with double-digit earnings and cash flow growth. Recurring and ancillary services drove over 7% organic growth, while one-time business was impacted by weather. 2026 guidance targets 7%-8% organic growth and 2%-3% from M&A.
Q3 2025 Q3 2025 2025-10-30
Third quarter results featured 12% revenue growth, margin expansion, and strong cash flow, driven by robust organic and acquisition performance. The Saela acquisition exceeded expectations, and the company raised its dividend while maintaining a healthy M&A pipeline.
Q2 2025 Q2 2025 2025-07-24
Q2 saw 12.1% revenue growth and strong organic gains, with all segments rebounding in June after weather-related softness. Saela acquisition outperformed, margins remained healthy despite insurance headwinds, and cash flow conversion exceeded 100%.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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