Rollins, Inc.
$45.79
+1.7%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 from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers traditional and baiting termite protection, as well as ancillary services. It serves clients directly, as well as through franchisee operations. Rollins, Inc. was incorporated in 1948 and is headquartered in Atlanta, Georgia.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 42.0).
Valuation inputs: P/E 42.0, earnings yield +2.4%, momentum +1.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +38.3%, ROIC +20.9%).
Profitability stack: net margin +14.0%, ROE +38.3%, ROIC +20.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +56.2%, momentum +1.7%, net margin +14.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Rollins, Inc. Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Positive earnings growth shows the company is improving its profitability over time.
Price-EPS Relationship
Earnings are growing but price is falling—potential undervaluation opportunity if growth continues.
Stock Price Change
Over the 1Y period, stock price has decreased by 21.1%.
P/E Ratio (TTM)
Very high P/E suggests premium valuation or high growth expectations.
Rollins, Inc. Fair Value Envelope
Rollins, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Rollins, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Rollins, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Negative working capital with limited cash reserves requires immediate attention—potential liquidity crisis if not addressed promptly.
Rollins, Inc. Street Expectations Map
Wall Street analysts project that ROL stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 62.44, with estimates ranging from a low of 51.00 to a high of 72.00.
The consensus 1-year price target stands at 62.44, with estimates ranging from a low of 51.00 to a high of 72.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Rollins, Inc. Insider Positioning
During the last 12 months, insiders have sold $1.19B worth of ROL shares, with no buying activity reported.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
73.4K
4.55M
-4.6M
-$4.55M
6-9 Months
0
0.00
20.7M
1.18B
-1.2B
-$1.18B
9-12 Months
0
0.00
46.0K
2.65M
-2.7M
-$2.65M
Top Buyers
No buying activity
Top Sellers
Lor Inc
10 Percent Owner
$1.10B
R. Randall Rollins Voting Trust U/A Dated August 25, 1994
10 Percent Owner
$40.00M
Gary W. Rollins Voting Trust U/A Dated September 14, 1994
10 Percent Owner
$40.00M
Wilson John F
Director, Officer: Executive Chairman
$2.64M
Rollins Gary W
Director, 10 Percent Owner, Officer: Executive Chairman Emeritus
$1.86M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $1.19B net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
rol Dividend History
Learning Layer
Related Guides
Build conviction on ROL by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.