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1. Company Snapshot

1.a. 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 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.

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1.b. Last Insights on ROL

Breaking News: Rollins Inc reported Q4 earnings and revenues that missed estimates. Despite a 9.7% increase in Q4 revenue, reaching $3.8 billion for fiscal 2025, and a 6.9% organic growth for the year, the company's earnings fell short. Adjusted EBITDA was $854 million, up 10.8%. Caisse Des Depots ET Consignations trimmed its holdings in Rollins by 26.1% during Q3. No analyst recommendation is available.

1.c. Company Highlights

2. Rollins, Inc. Delivers Strong Fiscal 2025 Results with Double-Digit Growth

Rollins, Inc. achieved a significant milestone in fiscal 2025, with revenue reaching $3,800,000,000, representing an 11% growth, driven by a combination of organic growth and strategic acquisitions. The company's adjusted EBITDA grew by 10.8% to $854,000,000, while operating cash flow was $678,000,000, and free cash flow was $650,000,000, up 11.6% and 12.1%, respectively. The actual EPS for the quarter came in at $0.25, slightly below estimates of $0.27.

Publication Date: Feb -15

📋 Highlights

Segmental Performance

In the fourth quarter, revenue was up 9.7%, with organic growth of 5.7%. The recurring revenue and ancillary services, which account for over 80% of the business, grew at over 7% organically, while one-time work declined almost 3%. The residential segment was impacted more significantly, particularly in wildlife and rodent control, while the commercial segment was affected by commodity fumigation. Termite pretreatment work also saw some weakness.

Guidance and Outlook

The company expects organic growth in the range of 7% to 8% in 2026, with additional growth from M&A of at least 2% to 3%. Management is optimistic about the company's ability to deliver a 25-30% margin profile and anticipates that cash flow will continue to convert at a rate above 100% in 2026. The company also expects pricing to remain healthy at 3-4%, and margins are expected to improve.

Valuation and Dividend Yield

With a P/E Ratio of 53.21 and an EV/EBITDA of 34.41, the market appears to have priced in significant growth expectations. The Dividend Yield stands at 1.17%, indicating a relatively stable return for shareholders. Analysts estimate next year's revenue growth at 8.6%, which is slightly above the company's guidance. The company's commitment to returning cash to shareholders is evident in the 11% increase in dividend payments.

Operational Highlights

The company made significant investments in talent development and prioritized improving its operations as it grows. Rollins closed the acquisition of Sela and completed 26 additional tuck-in deals in 2025, with Sela's performance exceeding expectations. The company is also working to improve collaboration across its brand portfolio to drive growth in ancillary services, which have a low penetration rate of only 3-4%.

3. NewsRoom

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Rollins to Present at Upcoming Investor Conference

Feb -16

Source: prnewswire.com

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Rollins Inc (ROL) Q4 2025 Earnings Call Highlights: Strong Revenue Growth Amid Weather Challenges

Feb -12

Source: gurufocus.com

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Rollins, Inc. (ROL) Q4 2025 Earnings Call Transcript

Feb -12

Source: seekingalpha.com

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Rollins Stock Declines as Q4 Earnings and Revenues Miss Estimates

Feb -12

Source: zacks.com

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Caisse Des Depots ET Consignations Has $4.53 Million Stock Holdings in Rollins, Inc. $ROL

Feb -12

Source: defenseworld.net

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Compared to Estimates, Rollins (ROL) Q4 Earnings: A Look at Key Metrics

Feb -12

Source: zacks.com

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Rollins (ROL) Misses Q4 Earnings and Revenue Estimates

Feb -11

Source: zacks.com

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ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS

Feb -11

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.74%)

6. Segments

Residential

Expected Growth: 6.5%

Residential segment growth of 6.5% at Rollins, Inc. is driven by increasing demand for pest control services, fueled by rising homeownership rates, growing awareness of health risks associated with pests, and expansion into new markets. Additionally, the company's focus on digital marketing and customer retention strategies contributes to the segment's growth.

Commercial

Expected Growth: 6.8%

Rollins, Inc.'s commercial segment growth of 6.8% is driven by increasing demand for pest control services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, customer retention, and pricing strategies have contributed to revenue growth.

Termite Completions, Bait Monitoring, Renewals, & Ancillary

Expected Growth: 7.2%

Rollins, Inc.'s 7.2% growth is driven by strong demand for Termite Completions, effective Bait Monitoring systems, and high customer retention rates resulting in increased Renewals. Additionally, the company's Ancillary services, such as special services and insulation, contribute to the growth. These fundamental drivers demonstrate the company's ability to provide comprehensive pest control solutions, leading to sustained revenue growth.

Other

Expected Growth: 6.2%

Rollins, Inc.'s 6.2% growth is driven by increasing demand for pest control services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, customer retention, and cost savings initiatives have contributed to its growth momentum.

Franchise

Expected Growth: 7.5%

Strong brand recognition, increasing demand for pest control services, and strategic acquisitions drive Rollins' franchise growth. The company's scalable business model, efficient operations, and effective marketing strategies also contribute to its 7.5% growth rate. Additionally, the growing need for termite control and mosquito services, particularly in the southeastern United States, further supports franchise expansion.

7. Detailed Products

Pest Control Services

Residential and commercial pest control services to eliminate pests and prevent future infestations

Termite Control Services

Termite detection, removal, and prevention services to protect homes and businesses from termite damage

Wildlife Removal Services

Humane removal and relocation of wildlife from homes and businesses

Mosquito Control Services

Mosquito control services to reduce mosquito populations and prevent mosquito-borne illnesses

Specialized Disinfection Services

Disinfection services to eliminate bacteria, viruses, and other microorganisms from homes and businesses

8. Rollins, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Rollins, Inc. is moderate due to the presence of alternative pest control services and products.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the pest control industry and the lack of concentration among customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of pest control products and services.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the pest control industry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple players in the pest control industry and the need to differentiate services and products to gain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.40%
Debt Cost 3.95%
Equity Weight 58.60%
Equity Cost 7.21%
WACC 5.86%
Leverage 70.64%

11. Quality Control: Rollins, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
H&R Block

A-Score: 6.3/10

Value: 7.8

Growth: 6.0

Quality: 6.7

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Rollins

A-Score: 5.8/10

Value: 0.5

Growth: 7.1

Quality: 7.7

Yield: 2.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
SCI

A-Score: 5.5/10

Value: 3.7

Growth: 6.4

Quality: 4.7

Yield: 4.0

Momentum: 5.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
KB Home

A-Score: 4.9/10

Value: 7.8

Growth: 4.6

Quality: 5.3

Yield: 3.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Frontdoor

A-Score: 4.7/10

Value: 4.8

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 4.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Bright Horizons Family Solutions

A-Score: 4.0/10

Value: 3.1

Growth: 5.9

Quality: 5.0

Yield: 0.0

Momentum: 4.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

58.06$

Current Price

58.06$

Potential

-0.00%

Expected Cash-Flows