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Rollins
(NYSE:ROL)
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Rating:63Neutral
Price Target:
$42.00
▲(8.92% Upside)
Action:Reiterated
Date:07/24/26
Overall score reflects strong underlying profitability and generally high-quality cash generation, supported by a mixed-but-stable outlook from the latest earnings call. The largest drag is technical weakness (price below all key moving averages with negative MACD), with an additional headwind from premium valuation (P/E ~35.9) and recent variability in free-cash-flow momentum.
Positive Factors
Recurring revenue & service diversification
Rollins' core model relies on recurring service agreements and a mix of residential, commercial, termite and ancillary offerings. Steady organic growth shows durable demand and recurring cash flows that support predictable revenue and resilience across cycles, aiding long-term planning.
Negative Factors
Rising leverage
Material increase in absolute debt and rising leverage reduces financial flexibility and raises refinancing and interest-rate sensitivity. In a downturn, higher leverage can constrain M&A optionality or shareholder returns and increases downside risk despite strong ROE.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & service diversification
Rollins' core model relies on recurring service agreements and a mix of residential, commercial, termite and ancillary offerings. Steady organic growth shows durable demand and recurring cash flows that support predictable revenue and resilience across cycles, aiding long-term planning.
Read all positive factors
Rollins Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how much revenue comes from different regions, highlighting where Rollins is strongest and where growth or risk is concentrated. Geographic splits reveal exposure to U.S. seasonality and local weather patterns, the impact of regional competition or regulation, and how much international markets or currency swings could affect top-line stability and expansion opportunities.
Shows how much revenue comes from different regions, highlighting where Rollins is strongest and where growth or risk is concentrated. Geographic splits reveal exposure to U.S. seasonality and local weather patterns, the impact of regional competition or regulation, and how much international markets or currency swings could affect top-line stability and expansion opportunities.
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The Fly
The FlyRollins (ROL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.27B
Dividend Yield1.88%
Average Volume (3M)5.12M
Price to Earnings (P/E)34.5
Beta (1Y)0.42
Revenue Growth9.90%
EPS Growth9.06%
CountryUS
Employees21,946
SectorConsumer Cyclical
Sector Strength84
IndustryEnvironmental Services
Share Statistics
EPS (TTM)1.10
Shares Outstanding481,145,420
10 Day Avg. Volume6,569,356
30 Day Avg. Volume5,116,330
Financial Highlights & Ratios
PEG Ratio4.07
Price to Book (P/B)21.14
Price to Sales (P/S)7.73
P/FCF Ratio44.70
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$44.83Price Target Upside16.27% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)1.16
Revenue Forecast (FY)$4.13B
Rollins Business Overview & Revenue Model
Company Description
Rollins, Inc. operates a network of subsidiaries that specialize in delivering pest and wildlife management solutions to a diverse clientele, encompassing both homeowners and commercial enterprises, throughout the United States and globally. For r...
How the Company Makes Money
Rollins makes money primarily by providing recurring and one-time pest control services to residential and commercial customers. Its core revenue stream is service revenue generated from scheduled pest management programs (often delivered under re...
Rollins Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call was mixed: solid financial and operational fundamentals (mid-single to high-single digit revenue growth, strong cash flow conversion, segment outperformance in commercial and termite/ancillary, tax-rate improvement, low leverage and continued M&A) were offset by a meaningful near-term slowdown in digital-driven residential demand, onetime service volatility, and margin headwinds from medical and fuel costs. Management provided early evidence of recovery in lead flows late June/early July and reiterated confidence in the multi-brand strategy and medium-term targets, but shortened the 2026 near-term outlook (organic growth to at least 6% and incremental margins of at least 10%), reflecting caution given the recent variability and difficult Q3 comps.Positive Updates
Topline Growth
Total revenue increased 7.9% in Q2 2026 with organic growth of 5.7%, demonstrating continued demand across the business despite headwinds.
Negative Updates
Residential Demand Slowdown, Especially Digital-Driven Brands
Certain portions of the residential business—particularly brands that rely on consumer-initiated digital search/inbound (notably Orkin)—experienced slower growth; residential organic growth was 3.6% (total residential revenue +6.6%) and overall organic growth missed internal expectations.
Read all updates
Q2-2026 Updates
Positive
Negative
Topline Growth
Total revenue increased 7.9% in Q2 2026 with organic growth of 5.7%, demonstrating continued demand across the business despite headwinds.
Read all positive updates
Company Guidance
Management updated 2026 guidance to organic growth of at least 6% and incremental margins of at least 10% (with margin improvement Q4‑weighted), while reaffirming expectations for 2–3% revenue from M&A and cash‑flow conversion above 100% (Q2 FCF conversion >115%; operating cash flow $173M; FCF $166M); they reiterated a medium‑term target of ≥7% organic growth and ≥30% incremental margins over time. They also noted an expected effective tax rate under 25%, fuel ~1.8% of sales in Q2 and expected <2% for 2026, a leverage ratio of ~1x, Q2 acquisitions of $117M and dividends paid of $88M, and Q2 results that informed the revision (total revenue +7.9%; organic +5.7%; residential revenue +6.6%; commercial +8.6%; termite & ancillary +10.5%; gross margin 52.8% down 100 bps; adjusted EBITDA $236M, 21.9% margin).Rollins Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.92B | 3.76B | 3.39B | 3.07B | 2.70B | 2.42B |
| Gross Profit | 1.99B | 1.86B | 1.79B | 1.60B | 1.39B | 1.26B |
| EBITDA | 864.27M | 854.23M | 771.13M | 688.17M | 592.88M | 569.87M |
| Net Income | 531.72M | 526.71M | 466.38M | 434.96M | 368.60M | 356.56M |
Balance Sheet | ||||||
| Total Assets | 3.35B | 3.14B | 2.82B | 2.60B | 2.12B | 2.02B |
| Cash, Cash Equivalents and Short-Term Investments | 109.08M | 100.00M | 90.63M | 104.83M | 95.85M | 117.90M |
| Total Debt | 1.12B | 1.04B | 812.53M | 816.35M | 533.22M | 402.76M |
| Total Liabilities | 1.93B | 1.77B | 1.49B | 1.44B | 854.83M | 910.32M |
| Stockholders Equity | 1.43B | 1.37B | 1.33B | 1.16B | 1.27B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 619.17M | 650.02M | 580.08M | 495.90M | 435.30M | 374.61M |
| Operating Cash Flow | 646.97M | 678.11M | 607.65M | 528.37M | 465.93M | 401.81M |
| Investing Cash Flow | -209.82M | -326.70M | -176.23M | -372.89M | -134.14M | -98.97M |
| Financing Cash Flow | -470.21M | -343.58M | -440.71M | -149.42M | -336.02M | -290.16M |
Rollins Technical Analysis
Negative
38.56
Price Trends
44.95
Negative
49.60
Negative
54.62
Negative
Market Momentum
-1.30
Positive
26.29
Positive
20.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROL, the sentiment is Negative. The current price of 38.56 is below the 20-day moving average (MA) of 42.37, below the 50-day MA of 44.95, and below the 200-day MA of 54.62, indicating a bearish trend. The MACD of -1.30 indicates Positive momentum. The RSI at 26.29 is Positive, neither overbought nor oversold. The STOCH value of 20.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ROL.
Rollins Risk Analysis
Rollins disclosed 1 risk factors in its most recent earnings report. Rollins reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rollins Peers Comparison
UnderperformOutperform
Sector (61)
ROL
Rollins
37.97
-19.77
-34.24%
FTDR
frontdoor
72.63
14.14
24.18%
Rollins Corporate Events
Business Operations and StrategyExecutive/Board Changes
Rollins Announces CFO Transition and Leadership Succession Plan
Positive
May 27, 2026
On May 26 and May 27, 2026, Rollins announced a planned change in financial leadership, with longtime finance executive William W. Harkins elevated from chief accounting officer to executive vice president and chief financial officer, effective Ju...
Executive/Board ChangesShareholder Meetings
Rollins Shareholders Approve Directors, Auditor and Executive Pay
Positive
May 1, 2026
On April 28, 2026, Rollins, Inc. held its 2026 annual meeting of shareholders, where investors elected nine director nominees to serve until the 2027 annual meeting, reinforcing continuity in the company’s board leadership. The voting result...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.