Rollins (ROL)
NYSE:ROL
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Rollins
(NYSE:ROL)
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Rating:80Outperform
Price Target:
$60.00
▲(9.69% Upside)
Action:ReiteratedDate:02/12/26
ROL scores well on financial quality (durable margins and strong cash conversion) and supportive technicals (clear uptrend with positive momentum). The main constraint is valuation, with a very high P/E and modest yield, while the earnings call was constructive with upbeat 2026 growth/cash-flow expectations but some near-term weather and margin variability.
Positive Factors
Recurring revenue and service mix
A business where >80% of revenue is recurring and ancillary services grow above 7% yields predictable cash flows and higher customer lifetime value. This durable revenue mix reduces volatility, supports planning, and underpins steady organic growth and cross-sell opportunities over multiple years.
Negative Factors
Weather-driven one-time revenue exposure
A meaningful one-time/project revenue stream (~15%) subjects near-term results to weather and seasonal swings. While core recurring revenues are stable, variability in one-time work can cause quarter-to-quarter volume and utilization swings that complicate operational planning and temporarily compress margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and service mix
A business where >80% of revenue is recurring and ancillary services grow above 7% yields predictable cash flows and higher customer lifetime value. This durable revenue mix reduces volatility, supports planning, and underpins steady organic growth and cross-sell opportunities over multiple years.
Read all positive factors
Rollins (ROL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.32B
Dividend Yield1.12%
Average Volume (3M)2.86M
Price to Earnings (P/E)55.2
Beta (1Y)0.53
Revenue Growth11.17%
EPS Growth9.81%
CountryUS
Employees20,000
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding481,092,220
10 Day Avg. Volume2,449,240
30 Day Avg. Volume2,860,538
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 Cap1.07
Enterprise Value/Revenue7.46
Enterprise Value/Gross Profit14.38
Enterprise Value/Ebitda32.89
Forecast
1Y Price Target
$65.67Price Target Upside20.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.23
Revenue Forecast (FY)$4.11B
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 Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive picture: strong full-year results (11% revenue growth), double-digit gains in adjusted EBITDA and cash flow, healthy organic growth anchored in recurring revenue and ancillary services, successful M&A execution (Sela and tuck-ins), improved retention, strong capital returns and a confident 2026 outlook (7%–8% organic growth plus 2%–3% M&A). Near-term headwinds were primarily weather-driven softness in one-time business in Q4, fleet and timing-related margin impacts, higher SG&A as a percentage of revenue, and some cash flow timing items; management characterizes these as transitory and emphasized investments and structural improvements that should drive margin expansion and sustained growth in 2026.Positive Updates
Record Revenue for Fiscal 2025
Rollins achieved $3,800,000,000 in revenue for fiscal 2025, representing robust full-year revenue growth of 11%.
Negative Updates
Q4 Weather-Driven One-Time Revenue Decline
Early winter weather in the Midwest and Northeast weighed on one-time and seasonal projects; one-time revenue declined almost 3% in Q4 after growing ~4% through the first nine months of 2025. One-time work is ~15% of revenue and historically grows ~1%–2% annually.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue for Fiscal 2025
Rollins achieved $3,800,000,000 in revenue for fiscal 2025, representing robust full-year revenue growth of 11%.
Read all positive updates
Company Guidance
Rollins guided to 2026 organic growth of 7%–8% plus at least 2%–3% from M&A (implying roughly 9%–11% total topline growth) and reiterated expectations for another year of double‑digit revenue, earnings, and cash‑flow growth; management expects pricing to add ~3%–4%, aims to continue improving incremental margins toward a 25%–30% profile, and anticipates cash‑flow conversion above 100% (after generating $678M of operating cash flow and $650M of free cash flow in 2025, and a Q4 free‑cash‑flow conversion of 137%). They noted a possible slower start to Q1 due to weather/one‑time volatility (one‑time work was down ~3% in Q4 after growing ~4% year‑to‑date), plan to remain investment‑grade with leverage ~0.9x (well under a 2x target), and expect to support growth through disciplined M&A and continued capital allocation.Rollins Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.76B | 3.39B | 3.07B | 2.70B | 2.42B |
| Gross Profit | 1.86B | 1.79B | 1.60B | 1.39B | 1.26B |
| EBITDA | 854.23M | 770.44M | 688.17M | 584.71M | 534.19M |
| Net Income | 526.71M | 466.38M | 434.96M | 368.60M | 356.56M |
Balance Sheet | |||||
| Total Assets | 3.14B | 2.82B | 2.60B | 2.12B | 2.02B |
| Cash, Cash Equivalents and Short-Term Investments | 100.00M | 90.63M | 104.83M | 95.85M | 105.30M |
| Total Debt | 1.33B | 812.53M | 816.35M | 533.22M | 402.76M |
| Total Liabilities | 1.77B | 1.49B | 1.44B | 854.83M | 910.32M |
| Stockholders Equity | 1.37B | 1.33B | 1.16B | 1.27B | 1.11B |
Cash Flow | |||||
| Free Cash Flow | 650.02M | 580.08M | 495.90M | 435.30M | 374.61M |
| Operating Cash Flow | 678.11M | 607.65M | 528.37M | 465.93M | 401.81M |
| Investing Cash Flow | -326.70M | -176.23M | -372.89M | -134.14M | -98.97M |
| Financing Cash Flow | -343.58M | -440.71M | -149.42M | -336.02M | -290.16M |
Rollins Technical Analysis
Neutral
54.70
Price Trends
58.26
Negative
59.27
Negative
57.92
Negative
Market Momentum
-1.18
Negative
46.09
Neutral
78.41
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 54.7 is above the 20-day moving average (MA) of 54.03, below the 50-day MA of 58.26, and below the 200-day MA of 57.92, indicating a neutral trend. The MACD of -1.18 indicates Negative momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 78.41 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
54.70
1.23
2.30%
FTDR
frontdoor
57.02
17.42
43.99%
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.