Rollins (ROL) AI Stock Analysis

• Market Cap: $29.19B
• Dividend Yield: 1.13%
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 56.6
• Beta (1Y): 0.44
• Revenue Growth: 11.17%
• EPS Growth: 9.81%
• Country: US
• Employees: 20,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.34
• Shares Outstanding: 484,628,800
• 10 Day Avg. Volume: 2,669,901
• 30 Day Avg. Volume: 2,873,159
• PEG Ratio: 6.12
• Price to Book (P/B): 16.87
• Price to Sales (P/S): 6.62
• P/FCF Ratio: 38.69
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 7.95
• Enterprise Value/Gross Profit: 15.03
• Enterprise Value/Ebitda: 34.79
• 1Y Price Target: $66.10
• Price Target Upside: 9.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.12
• Revenue Forecast (FY): $3.78B

• Rating: 79 Outperform
• Price Target: $66.00 ▲(9.65% Upside)

Rollins' strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's robust revenue growth, successful acquisition integration, and improved margins highlight its operational strength. However, the high P/E ratio suggests a premium valuation, and technical indicators suggest a cautious outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates Rollins' effective market penetration and customer retention, supporting long-term business expansion and stability.

Cash Flow Strength

Robust cash flow growth enhances Rollins' ability to reinvest in the business, reduce debt, and return capital to shareholders, ensuring financial resilience.

Successful Acquisition

The successful acquisition of Saela strengthens Rollins' market position and operational efficiency, driving sustainable growth and competitive advantage.

Negative Factors

Margin Pressure

Margin pressures from insurance claims could impact profitability, necessitating cost management strategies to maintain financial performance.

Increasing Debt Levels

Rising debt levels may limit Rollins' financial flexibility, impacting its ability to invest in growth opportunities and manage economic downturns.

SG&A Cost Increases

Higher SG&A costs can erode profit margins, requiring Rollins to optimize its cost structure to sustain long-term profitability.

Rollins Business Overview & Revenue Model

Company Description

Rollins, Inc. is a premier global provider of pest control services and solutions, headquartered in Atlanta, Georgia. The company operates through various subsidiaries, including Orkin, which is one of the largest pest control franchises in the world. Rollins serves both residential and commercial clients across North America, Latin America, and the Asia-Pacific region, offering a wide range of services such as termite control, rodent control, and general pest management, as well as specialized services for industries like food production and healthcare.

How the Company Makes Money

Rollins generates revenue primarily through the provision of pest control services and related products. The company's revenue model is built on a mix of recurring service contracts, one-time service calls, and product sales. A significant portion of its income derives from long-term contracts with residential and commercial clients, ensuring a steady revenue stream. Additionally, Rollins benefits from ancillary sales, including pest control products marketed through its subsidiaries. Strategic partnerships with other service providers and suppliers further bolster its earnings potential, while the company's commitment to customer service and operational efficiency helps maintain customer retention and satisfaction.

Rollins Financial Statement Overview

Summary

Rollins exhibits strong financial health with consistent revenue growth, stable profitability, and effective cash flow management. While leverage is increasing, the company maintains a strong return on equity and cash flow metrics, positioning it well for future growth.

Income Statement

Rollins demonstrates solid revenue growth with a 3.08% increase in TTM, supported by consistent gross and net profit margins. The EBIT and EBITDA margins are stable, indicating efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.67, reflecting balanced leverage. Return on equity is strong at 35.93%, showcasing effective use of equity capital. However, the increasing debt levels over the years could pose future risks if not managed carefully.

Cash Flow

Rollins shows robust free cash flow growth of 6.88% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of income into cash. The free cash flow to net income ratio remains high, further highlighting cash flow strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.68B	3.39B	3.07B	2.70B	2.42B	2.16B
Gross Profit	1.95B	1.79B	1.60B	1.39B	1.26B	1.11B
EBITDA	840.79M	770.44M	688.17M	584.71M	534.19M	455.42M
Net Income	515.94M	466.38M	434.96M	368.60M	356.56M	266.76M
Balance Sheet
Total Assets	3.22B	2.82B	2.60B	2.12B	2.02B	1.85B
Cash, Cash Equivalents and Short-Term Investments	127.36M	89.63M	103.83M	95.35M	105.30M	98.48M
Total Debt	912.08M	812.53M	816.35M	336.33M	402.76M	417.14M
Total Liabilities	1.69B	1.49B	1.44B	854.83M	910.32M	904.54M
Stockholders Equity	1.53B	1.33B	1.16B	1.27B	1.11B	941.36M
Cash Flow
Free Cash Flow	674.98M	580.08M	495.90M	435.30M	374.61M	412.56M
Operating Cash Flow	701.52M	607.65M	528.37M	465.93M	401.81M	435.79M
Investing Cash Flow	-355.49M	-176.23M	-372.89M	-134.14M	-98.97M	-162.40M
Financing Cash Flow	-310.35M	-440.71M	-149.42M	-336.02M	-290.16M	-281.27M

Rollins Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROL, the sentiment is Positive. The current price of 60.19 is below the 20-day moving average (MA) of 60.27, above the 50-day MA of 58.43, and above the 200-day MA of 56.38, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 60.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROL.

Rollins Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROL	79 Outperform	$29.19B	56.57	36.21%	1.13%	11.17%	9.81%
FTDR	72 Outperform	$4.01B	16.14	91.16%	―	11.88%	18.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Rollins Corporate Events

Rollins Completes Secondary Public Offering and Share Buyback

On November 12, 2025, Rollins, Inc. announced the closing of a secondary public offering of 17,391,305 shares of its common stock by existing stockholders LOR, Inc. and Rollins Holding Company, Inc., at a price of $57.50 per share. The company did not sell any shares or receive proceeds from this offering, but repurchased 3,478,260 shares for approximately $200 million. The offering was conducted under a shelf registration statement filed with the SEC, and the selling stockholders agreed to a 365-day lock-up period, restricting certain transactions with their shares.

Rollins Announces $1 Billion Secondary Stock Offering

On November 10, 2025, Rollins, Inc. announced a secondary public offering of $1.0 billion of its common stock by existing stockholders LOR, Inc. and Rollins Holding Company, Inc. The company will not receive proceeds from this offering, and the selling stockholders will enter a 365-day lock-up agreement. Rollins plans to repurchase approximately $200 million of the shares offered, with both the offering and repurchase contingent upon each other’s completion. This move is subject to market conditions and aims to manage the company’s stockholder structure without impacting its financials directly.