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AGING Analysis Report
Jun 7, 2026
19 days ago · 96% complete

Rollins, Inc.

ROL NYSE Categories PDF
Consumer Cyclical · Personal Products & Services
Atlanta, GA 30324, United States IPO 1980 rollins.com Updated Jun 26, 8:50am
Price
$42.80
Market Cap
$20.6B
Employees
20,000
Beta
0.73
Avg Volume
3,521,604
CEO
Jerry E. Gahlhoff Jr.
Business 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 residential properties, the company offers comprehensive pest control, safeguarding homes from prevalent invaders such as rodents, insects, and other nuisance animals. Furthermore, it devises tailored pest management strategies for various business sectors, including healthcare, foodservice, and logistics. Beyond standard pest solutions, Rollins, Inc. also provides a range of termite defense options, from conventional treatments to baiting systems, alongside other complementary services. The firm serves its customers directly through its own operations as well as through its extensive franchisee network. Established in 1948, Rollins, Inc. maintains its headquarters in Atlanta, Georgia.

Business History
Generated: Jun 7, 2026 5:25pm
Price Overview
Last updated: Jun 27, 2026 7:59am (just now)
$43.27
+0.47 (+1.10%)
Day Range
$42.61 – $43.43
52-Week Range
$42.61 – $66.14
50-Day MA
$50.81
200-Day MA
$56.62
Volume
7,088,216.00
Analyst Price Targets
Low $46.00
Consensus $60.00
High $70.00
(26 analysts)
Share Structure
Outstanding 481,464,000.00
Float 309,070,784.00
Free Float 64.2%
Normal free float — 64.2% of shares trade freely, ~35.8% held by insiders/institutions
Healthy float typical of established companies. Good liquidity for entering and exiting positions without major price impact.
Price History (1 Year)
Last updated: Jun 27, 2026 7:59am (just now)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Jun 20, 2026 4:21pm (6d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
API Direct from provider CALC Derived from statements
P/E Ratio (Price per dollar of earnings)
API
Stock Price / EPS (Diluted)
39.35
Stock Price: $42.80
EPS (Diluted): 1.09
P/B Ratio (Price vs net asset value)
API
Stock Price / Book Value Per Share
21.14
Stock Price: $42.80
Total Equity: $1.37B
Shares: 484,147,000
EV/EBITDA (Total value vs operating profit)
API
Enterprise Value / EBITDA
25.30
Market Cap: $20.61B
Total Debt: $609.83M
Cash: $100.00M
EBITDA: $854.23M
Enterprise Value (Takeover price (cap + debt - cash))
API
Market Cap + Total Debt - Cash
$30.0B
Market Cap: $20.61B
Total Debt: $609.83M
Cash: $100.00M
Gross Margin (Revenue left after direct costs)
API
Gross Profit / Revenue
49.4%
Gross Profit: $1.86B
Revenue: $3.76B
Operating Margin (Revenue left after all operations)
API
Operating Income / Revenue
19.4%
Operating Income: $729.32M
Revenue: $3.76B
Net Margin (Revenue left as actual profit)
API
Net Income / Revenue
14.0%
Net Income: $526.71M
Revenue: $3.76B
ROE (Profit from shareholder equity)
API
Net Income / Total Equity
36.9%
Net Income: $526.71M
Total Equity: $1.37B
ROIC (Profit from all invested capital)
API
NOPAT / Invested Capital
20.7%
Operating Income: $729.32M
Tax Rate: 24.9%
Equity: $1.37B
Total Debt: $609.83M
Cash: $100.00M
Current Ratio (Can it pay short-term bills)
API
Current Assets / Current Liabilities
0.60
Current Assets: $472.68M
Current Liabilities: $785.53M
Debt/Equity (Leverage — debt vs equity)
CALC
Total Debt / Total Equity
0.44
Short-Term Debt: $123.68M
Long-Term Debt: $486.15M
Total Debt: $609.83M
Total Equity: $1.37B
Rev/Share (Top-line per share)
CALC
Revenue / Shares Outstanding
$7.77
Revenue: $3.76B
Shares: 484,147,000
Book Value/Share (Net assets per share)
CALC
(Total Assets - Total Liabilities) / Shares
$2.84
Total Equity: $1.37B
Shares: 484,147,000
FCF/Share (Real cash generated per share)
CALC
(Operating Cash Flow + CapEx) / Shares
$1.34
Operating CF: $678.11M
CapEx: -$28.09M
Shares: 484,147,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
API
Last Annual Dividend / Stock Price
1.1%
Last Dividend: N/A
Stock Price: $42.80
Payout Ratio (Earnings paid out as dividends)
Dividends Paid / Net Income
Dividends Paid: N/A
Net Income: $526.71M
Dividends paid not available in cash flow statement
Industry Benchmarks
Last run: Jun 7, 2026 5:25pm
Compares ROL against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Deep Analysis
Last run: Jun 7, 2026 5:27:47 pm

Pre-flight intelligence scans the company first, then routes to the right analytical methods.

0 Company Classification — What type of company is this?
1 Industry Landscape — Where is the industry headed?
2 Company Momentum — Where is this company trending?
3 Forward Projection — 1Y & 2Y projected metrics (requires Layer 1 + 2)
4a DCF Valuation — Present value of future cash flows
4b Earnings Power Value — Floor value — worth with zero growth
4c Anchored PE — Industry PE adjusted for growth differential
4d Reverse DCF — What growth is the market pricing in?
4e Revenue-Based DCF — For growth/narrative companies (skip if mature earner)
Not applicable for Mature Earner companies
4f Anchored P/S — Price-to-Sales peer comparison (skip if mature earner)
Not applicable for Mature Earner companies
4g Scenario Analysis — Bull / Base / Bear (skip if mature earner)
Not applicable for Mature Earner companies
4h Dividend Discount Model — For dividend/income stocks only
Not applicable for Mature Earner companies
4i Book Value Analysis — For deep value / turnaround stocks only
Not applicable for Mature Earner companies
4j Insider Activity — Are insiders buying or selling?
4f Cash Flow Quality — How trustworthy is the FCF?
4g Debt Maturity Risk — Can it handle its debt?
4h Macro Environment — Rates, market valuation, volatility
4i Sector Intelligence — How does this company compare within its sector?
4j Revenue Confidence — How reliable is the growth projection?
4k Sensitivity Analysis — How fragile is the fair value estimate?
4l Sector Demand Cycle — Is the sector in a boom, steady state, or contraction?
5 AI Investigation — Adaptive research engine (Claude)
5b Thesis Evaluation — What does the market believe? (narrative/platform stocks only)
Not applicable for Mature Earner companies
6 Valuation Synthesis — Weighted verdict from all methods (requires Layer 4)
Income Statement (Annual)
Last updated: Jun 20, 2026 4:21pm (6d ago)
Metric 2021 2022 2023 2024 2025
Revenue $2.4B $2.7B $3.1B $3.4B $3.8B
Cost of Revenue $1.2B $1.3B $1.5B $1.6B $1.9B
Gross Profit $1.3B $1.4B $1.6B $1.8B $1.9B
Operating Expenses $814.0M $894.0M $1.0B $1.1B $1.1B
Operating Income $447.6M $493.4M $583.2M $657.2M $729.3M
Net Income $356.6M $368.6M $435.0M $466.4M $526.7M
EBITDA $569.9M $592.9M $688.2M $771.1M $854.2M
EPS $0.72 $0.75 $0.89 $0.96 $1.09
EPS (Diluted)
Balance Sheet (Annual)
Last updated: Jun 20, 2026 4:21pm (6d ago)
Metric 2021 2022 2023 2024 2025
Cash & Equivalents $105.3M $95.3M $103.8M $89.6M $100.0M
Total Current Assets $352.4M $348.6M $406.6M $442.6M $472.7M
Total Assets $2.0B $2.1B $2.6B $2.8B $3.1B
Current Liabilities $489.7M $493.8M $576.7M $645.2M $785.5M
Long-Term Debt $136.3M $236.8M $490.8M $395.3M $486.1M
Total Liabilities $910.3M $854.8M $1.4B $1.5B $1.8B
Total Equity $1.1B $1.3B $1.2B $1.3B $1.4B
Retained Earnings $530.1M $687.1M $566.4M $734.7M $738.9M
Cash Flow (Annual)
Last updated: Jun 20, 2026 4:21pm (6d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $401.8M $465.9M $528.4M $607.7M $678.1M
Capital Expenditure -$27.2M -$30.6M -$32.5M -$27.6M -$28.1M
Free Cash Flow $374.6M $435.3M $495.9M $580.1M $650.0M
Acquisitions (net) -$146.1M -$119.2M -$351.0M -$153.4M -$309.5M
Debt Repayment
Dividends Paid
Stock Buybacks -$10.7M -$7.1M -$315.0M -$11.6M -$216.9M
Net Change in Cash $6.8M -$10.0M $8.5M -$14.2M $10.4M
Analyst Estimates (Annual)
Last updated: Jun 26, 2026 8:50am (23h ago)
Metric 2027 2028 2029 2030
Revenue $4.5B
$4.3B – $4.7B
$4.9B
$4.9B – $4.9B
$5.3B
$5.2B – $5.4B
$5.5B
$5.3B – $5.6B
EBITDA $1.0B
$985.4M – $1.1B
$1.1B
$1.1B – $1.1B
$1.2B
$1.2B – $1.2B
$1.2B
$1.2B – $1.3B
Net Income $662.1M
$635.3M – $697.9M
$732.3M
$684.4M – $778.1M
$814.5M
$791.3M – $835.5M
$850.1M
$826.0M – $872.1M
EPS
Growth Trends (YoY %)
Last updated: Jun 20, 2026 4:21pm (6d ago)
Metric 2022 2023 2024 2025
Revenue Growth +11.2% +14.0% +10.3% +11.0%
Gross Profit Growth +10.0% +15.6% +11.4% +4.1%
Operating Income Growth +10.2% +18.2% +12.7% +11.0%
Net Income Growth +3.4% +18.0% +7.2% +12.9%
EBITDA Growth +4.0% +16.1% +12.1% +10.8%
Insider Trading (Recent)
Type codes PPurchase SSale AAward / grant MOption exercise FIn-kind (tax) CConversion GGift DReturn to issuer
All SEC Form 4 codes
Open market
P Purchase
Open-market or private purchase of shares.
S Sale
Open-market or private sale of shares.
Compensation (Rule 16b-3)
A Award / grant
Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
D Return to issuer
Securities disposed back to the company under Rule 16b-3.
F In-kind (tax)
Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
I Discretionary
Discretionary transaction under an employee plan — Rule 16b-3(f).
M Option exercise
Exercise or conversion of a derivative (option/RSU) into shares — exempt.
Derivatives
C Conversion
Conversion of a derivative security into the underlying shares.
E Short expiration
Expiration of a short derivative position.
H Long expiration
Expiration or cancellation of a long derivative position with value received.
O OTM exercise
Exercise of an out-of-the-money derivative.
X ITM exercise
Exercise of an in-the-money or at-the-money derivative.
Other exempt
G Gift
Bona fide gift of securities.
L Small acquisition
Small acquisition under Rule 16a-6.
W Inheritance
Acquisition or disposition by will or the laws of descent.
Z Voting trust
Deposit into or withdrawal from a voting trust.
Other
J Other
Other acquisition or disposition (explained in a Form 4 footnote).
K Equity swap
Transaction in an equity swap or similar instrument.
U Tender / buyout
Disposition via tender of shares in a change-of-control transaction.

Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.

Date Insider Type Shares Price Value
2026-02-20 Harkins William Wayne II A-Award 6,112.00 $0.00 $0
2026-04-01 Harkins William Wayne II F-InKind 357.00 $53.49 $19,096
2026-04-29 Gahlhoff Jerry Jr. G-Gift 3,629.00 $0.00 $0
2026-04-30 Wilson John F G-Gift 4,795.00 $0.00 $0
2026-04-28 Bell Susan R. A-Award 2,692.00 $0.00 $0
2026-04-28 Carson Donald P A-Award 2,692.00 $0.00 $0
2026-04-28 Donahue Paul D A-Award 2,692.00 $0.00 $0
2026-04-28 Gunning Patrick J. A-Award 2,692.00 $0.00 $0
2026-04-28 Hardin Paul Russell A-Award 2,692.00 $0.00 $0
2026-04-28 JONES DALE E A-Award 2,692.00 $0.00 $0
2026-04-28 Morrison Gregory B A-Award 2,692.00 $0.00 $0
2026-04-28 Rollins Pam R A-Award 2,692.00 $0.00 $0
2026-04-28 Rollins Timothy Curtis A-Award 2,692.00 $0.00 $0
2026-04-28 Sams Louise S A-Award 2,692.00 $0.00 $0
2026-04-28 Rollins Timothy Curtis 0.00 $0.00 $0
2026-04-28 Rollins Timothy Curtis 0.00 $0.00 $0
2026-04-28 Rollins Timothy Curtis 0.00 $0.00 $0
2026-02-25 Chandler Elizabeth B S-Sale 14,201.00 $59.36 $842,971
2026-02-20 ROLLINS GARY W F-InKind 7,860.00 $61.35 $482,211
2026-02-20 Tesh Thomas D A-Award 10,187.00 $0.00 $0
Dividend History (Last 20)
Last updated: Jun 20, 2026 4:21pm (6d ago)
Date Dividend Declaration Record Payment
2026-05-11 $0.18 2026-04-21 2026-05-11 2026-06-10
2026-02-25 $0.18 2026-01-22 2026-02-25 2026-03-10
2025-11-10 $0.18 2025-10-28 2025-11-10 2025-12-10
2025-08-11 $0.17 2025-07-22 2025-08-11 2025-09-10
2025-05-12 $0.17 2025-04-22 2025-05-12 2025-06-10
2025-02-25 $0.17 2025-01-22 2025-02-25 2025-03-10
2024-11-12 $0.17 2024-10-22 2024-11-12 2024-12-10
2024-08-12 $0.15 2024-07-23 2024-08-12 2024-09-10
2024-05-09 $0.15 2024-04-23 2024-05-10 2024-06-10
2024-02-20 $0.15 2024-01-22 2024-02-21 2024-03-11
2023-11-09 $0.15 2023-10-24 2023-11-10 2023-12-11
2023-08-09 $0.13 2023-07-25 2023-08-10 2023-09-08
2023-05-09 $0.13 2023-04-25 2023-05-10 2023-06-09
2023-02-09 $0.13 2023-01-23 2023-02-10 2023-03-10
2022-11-09 $0.13 2022-10-25 2022-11-10 2022-12-09
2022-08-09 $0.10 2022-07-26 2022-08-10 2022-09-09
2022-05-09 $0.10 2022-04-26 2022-05-10 2022-06-10
2022-02-09 $0.10 2022-01-25 2022-02-10 2022-03-10
2021-11-09 $0.18 2021-10-26 2021-11-10 2021-12-10
2021-08-09 $0.08 2021-07-27 2021-08-10 2021-09-10
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for ROL — it's generated by the pipeline (market-narrative step).
Delvantic AI Findings
Independent analyst synthesis · Delvantic - Cairn AI · generated 2026-06-07 17:28:23
Reviews the pipeline's own verdicts
Verdict Overvalued quality compounder — fair value $32-38 vs $47.10; pass on initiation, revisit on any growth stumble that resets P/E toward 30x.

Looking at the raw quarterly tape first: revenue went $891.9M → $916.3M → $832.2M → $822.5M → $999.5M → $1.03B → $912.9M → $906.4M. That's seasonality (Q2/Q3 are peak pest season), not deceleration — comparing Q1'26 ($906.4M) to Q1'25 ($822.5M) is +10.2% YoY, and Q4'25 to Q4'24 is +9.7%. Margins are similarly seasonal: 15.9% in peak Q3 vs 11.9% in Q1. The "decelerating" tag in the revenue confidence signal is reading seasonal noise. Full-year 2025 revenue of $3.76B on 2024's $3.39B is +10.9%, and NI grew +12.9% — both consistent with the 4-year CAGRs. FCF of $650M on $678M OCF with only $28M capex is a pristine 17.3% FCF margin. ROIC of ~21% is genuinely excellent. This is a high-quality compounder, full stop.

That said, the synthesis verdict pinning fair value at $11.88 is absurd and should be discarded — that implies a sub-4x P/E for a 20%+ ROIC business growing low double-digits with recurring revenue. Whatever DCF assumptions produced that number are broken (likely a punitive discount rate or terminal growth assumption mismatched to the business model). Throwing it out doesn't mean the stock is cheap, though. At $47.10, ROL trades at 42.8x TTM earnings, 27.5x EV/EBITDA, and 7.7x sales for a business growing revenue ~11% and earnings ~13%. A PEG north of 3 on a mature consolidator is rich by any historical standard. The pre-flight and market-forces models have this directionally right even if synthesis blew the magnitude.

The contrarian case for paying up: Rollins has compounded at ~11% revenue and ~15% FCF for years with recession resilience (pest control is non-discretionary), and the fragmented industry leaves a long M&A runway. If you assume 10% FCF growth for a decade and a 3.5% terminal, even at a 9% discount rate you get a fair value around $32-36 — still 25-30% below current. To justify $47, you need either sustained 13%+ FCF growth for 10+ years or a permanent re-rating to even higher multiples. The narrative model's "platform-monopoly" framing captures why the market is paying this: investors treat ROL like a toll road with a moat, not a roll-up exposed to labor inflation and franchisee churn. The bear cites are real — Orkin franchisee disputes are a known overhang, and DIY pest tech (smart traps, subscription chemicals) is a slow-burn threat, not an acute one. Insider activity here is mostly awards and gifts, not open-market sells — the "unusual heavy selling" tag looks overcooked; I'd discount that signal substantially.

I dissent from synthesis on magnitude but agree on direction: ROL is overvalued, not catastrophically mispriced. Fair value in my framework is $32-38 depending on how much credit you give the M&A runway and pricing power; $47 requires the quality-compounder narrative to remain intact through a labor-cost cycle and any future multiple compression. The data is fine — no staleness issues beyond standard TTM-vs-annual mismatches flagged in anomalies. What's thin is any catalyst for re-rating higher; what's stale is the post-COVID "essential services" premium that's been baked in for four years. I would not short this (quality compounders crush shorts), but I wouldn't initiate at $47 either. Wait for a multiple reset to the low-to-mid 30s P/E range, which historically happens on any earnings stumble or M&A integration miss. The asymmetry isn't there at current prices: limited upside if everything goes right, 25-35% downside if growth slips to 7-8% and the multiple normalizes to 28-30x.

GPT Critique
Second-opinion review · gpt-4o · generated 2026-06-07 17:28:29
Reviews the Opus findings above
Verdict I agree with Opus — overvalued at $47.10; fair value closer to $32, considering growth headwinds and competitive risks.

Upon reviewing Rollins, Inc., my analysis of the data highlights a mature, consistent performer with solid financial metrics but a valuation that appears stretched. The company has exhibited impressive revenue growth, with a CAGR of approximately 10.6% over the past few years, and net income growth closely mirroring that at 12.9% YoY for 2025. Free cash flow remains robust, clocking in at $650M for 2025 with a minimal capex requirement, indicative of a strong cash-generative business model. However, the current valuation metrics, particularly a P/E ratio of 42.8 and an EV/EBITDA of 27.5, suggest that the market is pricing in a significant premium for the company's perceived stability and market dominance, which might not be sustainable.

I agree with Opus that the fair value synthesis output of $11.88 is unrealistic and should be discarded. The assumptions leading to such a low valuation are likely flawed, perhaps due to an excessively high discount rate or overly conservative growth projections. However, I also concur with the notion that the stock is overvalued at its current price of $47.10. While Opus suggests a fair value range of $32-38, my assessment leans towards the lower end of that range, closer to $32, due to potential headwinds such as labor cost inflation and technological disruptions that could impact margins and growth trajectories.

Opus rightly points out the importance of Rollins' M&A strategy and the resilience of its business model in the face of economic downturns. However, I slightly diverge on the degree of risk posed by franchisee disputes and emerging DIY pest control technologies. These factors could exert more downward pressure on growth and margins than Opus anticipates, particularly if they lead to increased customer churn or reduced pricing power. Additionally, while the insider transactions appear to be primarily awards and gifts, the broader signal of insider sentiment shouldn't be entirely dismissed, as it may reflect internal perspectives on valuation.

A careful skeptic might argue that both Opus and I are underestimating Rollins' ability to adapt and grow through strategic acquisitions and innovation in service offerings. They could point to the company's historical ability to integrate acquisitions successfully and maintain customer loyalty as evidence that the current valuation is justified. However, the absence of a strong, imminent catalyst for further multiple expansion makes the current price less appealing for new investors.

Community AI Feedback
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My Notes personal — only you see this
Data via Financial Modeling Prep · Cached for performance · fmp
v1.1.352 · d1100787 · 2026-06-26 11:39:30