Rollins (ROL)
NYSE:ROL
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Rollins
(NYSE:ROL)
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Rating:72Outperform
Price Target:
$61.00
▲(10.91% Upside)
Action:ReiteratedDate:04/23/26
The score is driven mainly by strong underlying profitability/cash generation and a confident, growth-oriented 2026 outlook from management. These positives are tempered by premium valuation (high P/E) and a mixed technical picture with weaker intermediate/longer-term trend signals.
Positive Factors
Recurring revenue service model
Rollins’ core business is built on recurring service agreements and scheduled routes that generate predictable, repeatable revenue and strong customer retention. That route density and contract renewal cadence support stable cash flows, cross‑selling, and pricing power over multi‑quarter horizons.
Negative Factors
Rising leverage vs prior years
Leverage increasing to around 1.0x from prior low levels reduces balance‑sheet flexibility and raises interest‑rate exposure. Higher debt can constrain large opportunistic M&A or buybacks and leaves less room for unexpected cash needs, making financial policy more sensitive to macro shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue service model
Rollins’ core business is built on recurring service agreements and scheduled routes that generate predictable, repeatable revenue and strong customer retention. That route density and contract renewal cadence support stable cash flows, cross‑selling, and pricing power over multi‑quarter horizons.
Read all positive factors
Rollins (ROL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.64B
Dividend Yield1.12%
Average Volume (3M)2.77M
Price to Earnings (P/E)59.6
Beta (1Y)0.47
Revenue Growth11.03%
EPS Growth11.08%
CountryUS
Employees20,000
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.22
Shares Outstanding481,463,650
10 Day Avg. Volume2,413,713
30 Day Avg. Volume2,769,468
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 Cap1.04
Enterprise Value/Revenue7.18
Enterprise Value/Gross Profit13.87
Enterprise Value/Ebitda32.13
Forecast
1Y Price Target
$63.83Price Target Upside16.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)1.22
Revenue Forecast (FY)$4.13B
Rollins Business Overview & Revenue Model
Company Description
Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting fr...
How the Company Makes Money
Rollins generates revenue primarily by providing pest-control services under ongoing service agreements and scheduled routes, creating recurring revenue from repeat customer visits (e.g., monthly, bi-monthly, or quarterly programs). A major revenu...
Rollins Key Performance Indicators (KPIs)
Rollins Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: strong revenue and organic growth across segments, improving March exit trends, healthy cash generation, a low leverage ratio, and a confident 2026 outlook with pricing support. Offsetting items were largely seasonal or explainable short-term headwinds — notably margin pressure from insurance/claims, lower vehicle gains, and the deliberate decision to carry incremental staffing into peak season — which management expects to moderate as volumes ramp. Management reiterated targets for organic growth, M&A contribution, margin improvement, and cash conversion, and will provide further detail at an upcoming Investor Day.Positive Updates
Strong Top-Line Growth
Total revenue grew 10.2% year-over-year with organic growth of 6.6%. The company exited March with approximately 12% total growth and over 8% organic growth, and organic growth improved ~90 basis points versus Q4 2025.
Negative Updates
Gross Margin Pressure in Q1
Gross margin was 50.8%, down 60 basis points year-over-year. Key headwinds cited included lower vehicle gains (~50 bps), higher insurance and claims (~30 bps) and service payroll carrying more technicians (~20 bps).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue grew 10.2% year-over-year with organic growth of 6.6%. The company exited March with approximately 12% total growth and over 8% organic growth, and organic growth improved ~90 basis points versus Q4 2025.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance for organic growth of 7–8% with M&A adding 2–3% (implying roughly 9–11% total), expects pricing to contribute 3–4% (ahead of CPI) and to be positive on price/cost, sees fuel tracking below 2% of sales (Q1 ~1.5%), and expects an effective tax rate under 25% for the year (Q1 21.3%); they expect free cash flow conversion above 100% in 2026 (Q1 OCF $118M, FCF $111M; excluding timing items FCF would have risen 14% and conversion ~140%), improving gross margins from Q1’s 50.8% (down 60 bps) and adjusted EBITDA of $179M (19.8% margin) as peak-season volumes ramp and headwinds from lower vehicle gains (~50 bps), insurance/claims (~30 bps; Q1 insurance 3.7% of sales) and extra service payroll (~20 bps) abate; balance sheet metrics include Q1 acquisitions of $18M, dividends paid $88M and leverage of 0.9x.Rollins Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.84B | 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 | 859.47M | 854.23M | 770.44M | 688.17M | 584.71M | 534.19M |
| Net Income | 529.29M | 526.71M | 466.38M | 434.96M | 368.60M | 356.56M |
Balance Sheet | ||||||
| Total Assets | 3.16B | 3.14B | 2.82B | 2.60B | 2.12B | 2.02B |
| Cash, Cash Equivalents and Short-Term Investments | 116.54M | 100.00M | 90.63M | 104.83M | 95.85M | 105.30M |
| Total Debt | 1.07B | 1.33B | 812.53M | 816.35M | 533.22M | 402.76M |
| Total Liabilities | 1.78B | 1.77B | 1.49B | 1.44B | 854.83M | 910.32M |
| Stockholders Equity | 1.38B | 1.37B | 1.33B | 1.16B | 1.27B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 621.14M | 650.02M | 580.08M | 495.90M | 435.30M | 374.61M |
| Operating Cash Flow | 649.58M | 678.11M | 607.65M | 528.37M | 465.93M | 401.81M |
| Investing Cash Flow | -318.70M | -326.70M | -176.23M | -372.89M | -134.14M | -98.97M |
| Financing Cash Flow | -415.16M | -343.58M | -440.71M | -149.42M | -336.02M | -290.16M |
Rollins Technical Analysis
Neutral
55.00
Price Trends
57.10
Negative
59.02
Negative
57.88
Negative
Market Momentum
-0.49
Negative
49.66
Neutral
48.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROL, the sentiment is Neutral. The current price of 55 is above the 20-day moving average (MA) of 53.91, below the 50-day MA of 57.10, and below the 200-day MA of 57.88, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 48.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
55.33
-1.13
-1.99%
FTDR
frontdoor
60.59
19.48
47.39%
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.