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Rollins, Inc.
S&P 500
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$18.8B
Market Cap
55.1
P/E
4.93
PEG
18.1%
ROCE
38.9%
ROE
0.66
D/E
19.3%
OPM
+41.2%
% from 52W High
16
α RS
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Currency-adjusted total returns for ROL including FX impact
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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.

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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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Mixed quarter Investor Presentation One-Pager? Q1 2026
Revenue
$906.4M
+10.2% YoY
Operating Income
$145.5M
+2.0% YoY
Operating Margin
16.1%
-1.2pp YoY
Net Income
$107.8M
+2.5% YoY
What Went Right
  • Organic growth improved 90bps sequentially to 6.6%, exiting March at over 8% organic
  • Pricing increase of 3-4% well-received, expected to contribute positively for the year
  • Commercial segment delivered solid growth with new account wins across key verticals
What to Watch
  • Insurance and claims costs rose to 3.7% of sales, causing 30bps gross margin headwind and 20bps SG&A headwind
  • Lower vehicle gains on fleet created 50bps of gross margin pressure during the quarter
  • Unfavorable January weather dampened early-quarter demand, requiring higher staffing costs carried into peak season
Management Guidance
  • Full-year organic revenue growth expected in the range of 7-8%
  • M&A expected to contribute 2-3% of revenue growth for 2026
  • Free cash flow conversion expected to remain above 100% for the year
Investor Lens
The quarter shows solid top-line momentum with accelerating organic growth, but margin compression from insurance and claims costs and temporary staffing investments tempers profitability. The healthy exit rate and pricing power support the outlook, though near-term margin headwinds from insurance and fleet gains may persist. The thesis remains intact with strong cash flow and a balanced capital allocation strategy, but investors should monitor cost normalization through peak season.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Q1: top-line beats, margins pressured by claims and fleet costs
Revenue
Revenue of $906.4 million grew 10.2% YoY, with organic growth of 6.6%. Residential grew 9.3%, commercial 9.6%, and termite/ancillary 13.5%. March exit rate was strong at over 8% organic growth.
Profitability
GAAP net income of $107.8 million increased 2.5% YoY, and adjusted net income of $113.2 million rose 5.0% YoY. Adjusted EPS was $0.24, up 9.1%.
Margins
Gross margin decreased 60bps to 50.8%, impacted by lower vehicle gains (50bps), higher insurance and claims (30bps), and service payroll (20bps). SG&A rose 70bps as a percentage of revenue, mainly from selling investments (50bps) and insurance/claims (20bps). Adjusted EBITDA margin was 19.8%, down 110bps.
Balance Sheet
Operating cash flow of $118.4 million and free cash flow of $111.2 million were negatively impacted by $40 million in tax timing and $9 million in semi-annual interest payments; excluding those, free cash flow conversion would have been ~140%. Leverage ratio remains low at 0.9x. Acquisitions totaled $18 million in Q1.
Key Risks
Insurance and claims costs remain elevated and unpredictable, with some claims maturing from prior years. Lower vehicle gains on fleet are expected to improve from Q2 onward. Early‑quarter weather disruptions required higher staffing and may pressure margins if demand slows again.
Outlook
Management expects 7-8% organic growth for full-year 2026, with M&A adding 2-3%. Margins are expected to improve as peak season ramps, and free cash flow conversion is expected to remain above 100%.
Generated by AI · Q1 2026 results · Not investment advice
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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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.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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