# Rollins (ROL.US)

Canonical: https://gigainvestors.com/s/ROL

Analysis as of: 2026-10-16T07:31:39.372Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $33.89 per share; close as of 2026-10-15.

Estimated value: low $19.42 per share, central $28.30 per share, high $33.25 per share. Buy at or below the central value $28.30 per share. Valuation as of 2026-10-16T07:31:39.372Z; scenarios are not confidence intervals.

Expected annual return: 8.9% at the stated quote. About 8.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.08×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.21×

- FY2019: 0.16×

- FY2020: 0.17×

- FY2021: 0.18×

- FY2022: 0.18×

- FY2023: 0.19×

- FY2024: 0.19×

- FY2025: 0.19×

- LTM to Jun 2026: 0.19×

### moat: pass

- ROIC, median of available years: 54.4%

- ROIC, second-lowest year: 42.5%

- Typical minus recent gross margin: 1.8 pp

- Typical gross margin (annual median): 51.2%

- Recent gross margin (lower of latest and 3-year median): 49.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.1%

- ROIC including acquisitions, ten-year median: 26.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 74.2%

- FY2017: 75.6%

- FY2018: 84.2%

- FY2019: 38.5%

- FY2020: 45.6%

- FY2021: 54.3%

- FY2022: 42.5%

- FY2023: 54.3%

- FY2024: 54.6%

- FY2025: 58.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.17×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.5B

- Net income, five-year total: $2.2B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.6 pp

- Working capital / revenue, final three-year average: 6.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.17×

- FY2022: 1.16×

- FY2023: 1.15×

- FY2024: 1.18×

- FY2025: 1.18×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 75.6% vs 54.6%

- Per-share earnings: 0.34 to 0.96 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: $18B

- Cumulative retained earnings: $396M

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.9%

- Per-share value change: $0.62

- Per-share value, starting three-year median: $0.34

- Per-share value, ending three-year median: $0.96

- Buybacks concentrated in cheaper years (correlation): 0.01

- Average buyback yield: 0.3%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.9B

- Cumulative net income, 10 years: $3.2B

- ROIC, first three-year median: 75.6%

- ROIC, last three-year median: 54.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.34

- FY2017: $0.37

- FY2018: $0.47

- FY2019: $0.41

- FY2020: $0.54

- FY2021: $0.72

- FY2022: $0.75

- FY2023: $0.89

- FY2024: $0.96

- FY2025: $1.09

### accounting: pass

- Sloan accruals: -4.8%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.29×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.42×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.5%

- FY2017: -5.4%

- FY2018: -5.0%

- FY2019: -6.1%

- FY2020: -9.2%

- FY2021: -2.2%

- FY2022: -4.6%

- FY2023: -3.6%

- FY2024: -5.0%

- FY2025: -4.8%

## Holders

- [Henry Ellenbogen](https://gigainvestors.com/DCP): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 46% since Jan 2026 · "Rollins Facing Decreased Demand Visibility After Weaker-Than-Expected Q2 Results, BofA Says" (finance.yahoo.com, Jul 2026) · sales +4.3%

Story as of 2026-10-16T09:59:31.391Z; price observation 2026-10-15.

Price needs cash profits to grow 9.7% a year for ten years

- 2025-04-24: Rollins (NYSE:ROL) Reports Increased Quarterly Earnings With US$105 Million Net Income ([finance.yahoo.com](https://finance.yahoo.com/news/rollins-nyse-rol-reports-increased-181220432.html))

- 2025-07-24: Rollins outlines 7–8% organic growth target for 2025 as Saela integration exceeds expectations ([seekingalpha.com](https://seekingalpha.com/news/4471571-rollins-outlines-7-8-percent-organic-growth-target-for-2025-as-saela-integration-exceeds?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-12: ROL Q4 Deep Dive: One-Time Revenue Weakness and Weather Disruptions Shape Results ([finance.yahoo.com](https://finance.yahoo.com/news/rol-q4-deep-dive-one-152055252.html))

- 2026-07-23: Rollins Facing Decreased Demand Visibility After Weaker-Than-Expected Q2 Results, BofA Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rollins-facing-decreased-demand-visibility-150708668.html))

### Sales · FY2025–2026

sales +4.3%; source https://www.sec.gov/Archives/edgar/data/84839/000008483926000008/rol-20251231.htm; observed 2026-02-12.

- FY2017: $1.7B 

- FY2018: $1.8B 

- FY2019: $2.0B 

- FY2020: $2.2B 

- FY2021: $2.4B 

- FY2022: $2.7B 

- FY2023: $3.1B 

- FY2024: $3.4B 

- FY2025: $3.8B 

- FY2026: $3.9B 

### Gross margin · FY2025

gross margin 49.4%; source https://www.sec.gov/Archives/edgar/data/84839/000008483926000008/rol-20251231.htm; observed 2026-02-12.

- FY2016: 50.9% 

- FY2017: 51.0% 

- FY2018: 50.9% 

- FY2019: 50.7% 

- FY2020: 51.5% 

- FY2021: 52.0% 

- FY2022: 51.5% 

- FY2023: 52.2% 

- FY2024: 52.7% 

- FY2025: 49.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in personal services; annual sales are USD 3.8 billion.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2025-12-31 (filed 2026-02-12); FY2025: revenue 3761050000; grossProfit 1859300000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ROL.US: Rollins, Inc., through its subsidiaries, provides pest and wildlife control services and protection 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, food service, and logistics. In addition, the company offers termite protection and ancillary services for both residential and commercial customers. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.

### Why customers stay

Margins ranged from 49.4% to 52.7% during 2023–25; it earns 54.4% on its capital.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2023-12-31 (filed 2026-02-12); FY2023: grossProfit / revenue = 52.2%.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2024-12-31 (filed 2026-02-12); FY2024: grossProfit / revenue = 52.7%.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2025-12-31 (filed 2026-02-12); FY2025: grossProfit / revenue = 49.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2016,0.7418768258401162],[2017,0.7560789199519565],[2018,0.8417795122613939],[2019,0.3850045211358578],[2020,0.4557788538624576],[2021,0.5426938391548719],[2022,0.4249090584844805],[2023,0.5430711541981215],[2024,0.5456042890909882],[2025,0.5844758204482186]]; median 0.5443377216445549. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 51% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/84839/000008483926000008/rol-20251231.htm (filed 2026-02-12); Gross margin observations: [[2021,0.5204318772429155],[2022,0.514656934079129],[2023,0.5217253369203827]]; range within 2 percentage points.

### Where the cash goes

Reinvests 49.7% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2016-12-31 (filed 2026-02-12); FY2016: growth capex 0; upkeep 33081000; cash acquisitions 46308000; owner earnings 184182000. Growth capex plus acquisitions / owner earnings = 0.2514252207056064.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2017-12-31 (filed 2026-02-12); FY2017: growth capex 0; upkeep 24680000; cash acquisitions 130189000; owner earnings 211024000. Growth capex plus acquisitions / owner earnings = 0.616939305481841.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2018-12-31 (filed 2026-02-12); FY2018: growth capex 0; upkeep 27179000; cash acquisitions 76769000; owner earnings 271276000. Growth capex plus acquisitions / owner earnings = 0.28299222931626833.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2019-12-31 (filed 2026-02-12); FY2019: growth capex 0; upkeep 27146000; cash acquisitions 430558000; owner earnings 257312000. Growth capex plus acquisitions / owner earnings = 1.6732915682129088.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2020-12-31 (filed 2026-02-12); FY2020: growth capex 0; upkeep 23229000; cash acquisitions 147613000; owner earnings 322857999. Growth capex plus acquisitions / owner earnings = 0.4572071946713639.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2021-12-31 (filed 2026-02-12); FY2021: growth capex 0; upkeep 27194000; cash acquisitions 146098000; owner earnings 415928999. Growth capex plus acquisitions / owner earnings = 0.35125706635328885.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2022-12-31 (filed 2026-02-12); FY2022: growth capex 0; upkeep 30628000; cash acquisitions 119188000; owner earnings 429297000. Growth capex plus acquisitions / owner earnings = 0.27763529677589177.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2023-12-31 (filed 2026-02-12); FY2023: growth capex 0; upkeep 32465000; cash acquisitions 366854000; owner earnings 502244000. Growth capex plus acquisitions / owner earnings = 0.7304298309188363.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2024-12-31 (filed 2026-02-12); FY2024: growth capex 0; upkeep 27572000; cash acquisitions 157471000; owner earnings 552027000. Growth capex plus acquisitions / owner earnings = 0.2852595978095274.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2025-12-31 (filed 2026-02-12); FY2025: growth capex 0; upkeep 28086000; cash acquisitions 309518000; owner earnings 623363000. Growth capex plus acquisitions / owner earnings = 0.49652930956761954.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,109002000],[2017,122017000],[2018,152742000],[2019,153836000],[2020,160487000],[2021,208656000],[2022,211618000],[2023,264348000],[2024,297989000],[2025,327901000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/ROL.US.json#2025-12-31 (filed 2026-02-12); FY2025: cash repurchases 216855000 USD.

### Are managers owners

Insiders own 38.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ROL.US SharesStats.PercentInsiders = 38.49 percentage points; cache date 2026-10-16.

### What could break it

The FTC could also choose to proceed to litigation.

- Source: https://www.sec.gov/Archives/edgar/data/84839/000008483926000008/rol-20251231.htm (filed 2026-02-12); Any voluntary agreement with the FTC to resolve the FTC inquiry is unlikely to have a material impact on Rollins. The FTC could also choose to proceed to litigation. In the event of litigation, the Company is prepared to vigorously defend its practices, but we are unable to predict the outcome.

### What the price says

The price assumes cash profits grow 9.7% yearly over ten years; actual growth was 15%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Ten-year compound average after fade. Initial solved rate 0.16581426293836687. Price 33.89; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.3195856951364013 → FY2025 1.2875490295302874. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $20.55 per share

- 2016-11: $21.42 per share

- 2016-12: $22.52 per share

- 2017-01: $23.51 per share

- 2017-02: $24.37 per share

- 2017-03: $24.75 per share

- 2017-04: $25.89 per share

- 2017-05: $28.71 per share

- 2017-06: $27.14 per share

- 2017-07: $28.94 per share

- 2017-08: $29.61 per share

- 2017-09: $30.76 per share

- 2017-10: $29.27 per share

- 2017-11: $30.90 per share

- 2017-12: $31.02 per share

- 2018-01: $32.89 per share

- 2018-02: $33.51 per share

- 2018-03: $34.02 per share

- 2018-04: $32.35 per share

- 2018-05: $33.18 per share

- 2018-06: $35.05 per share

- 2018-07: $36.63 per share

- 2018-08: $40.05 per share

- 2018-09: $40.46 per share

- 2018-10: $39.47 per share

- 2018-11: $42.37 per share

- 2018-12: $24.07 per share

- 2019-01: $24.83 per share

- 2019-02: $26.44 per share

- 2019-03: $27.75 per share

- 2019-04: $25.78 per share

- 2019-05: $25.05 per share

- 2019-06: $23.91 per share

- 2019-07: $22.35 per share

- 2019-08: $21.87 per share

- 2019-09: $22.71 per share

- 2019-10: $25.41 per share

- 2019-11: $23.90 per share

- 2019-12: $22.11 per share

- 2020-01: $25.30 per share

- 2020-02: $24.96 per share

- 2020-03: $24.09 per share

- 2020-04: $26.67 per share

- 2020-05: $27.87 per share

- 2020-06: $28.26 per share

- 2020-07: $34.93 per share

- 2020-08: $36.76 per share

- 2020-09: $36.13 per share

- 2020-10: $38.57 per share

- 2020-11: $38.12 per share

- 2020-12: $39.07 per share

- 2021-01: $36.02 per share

- 2021-02: $33.17 per share

- 2021-03: $34.42 per share

- 2021-04: $37.28 per share

- 2021-05: $34.09 per share

- 2021-06: $34.20 per share

- 2021-07: $38.33 per share

- 2021-08: $38.92 per share

- 2021-09: $35.33 per share

- 2021-10: $35.23 per share

- 2021-11: $33.28 per share

- 2021-12: $34.21 per share

- 2022-01: $30.85 per share

- 2022-02: $32.63 per share

- 2022-03: $35.05 per share

- 2022-04: $33.54 per share

- 2022-05: $35.46 per share

- 2022-06: $34.92 per share

- 2022-07: $38.57 per share

- 2022-08: $33.76 per share

- 2022-09: $34.68 per share

- 2022-10: $42.08 per share

- 2022-11: $40.44 per share

- 2022-12: $36.54 per share

- 2023-01: $36.40 per share

- 2023-02: $35.20 per share

- 2023-03: $37.53 per share

- 2023-04: $42.25 per share

- 2023-05: $39.32 per share

- 2023-06: $42.83 per share

- 2023-07: $40.83 per share

- 2023-08: $39.57 per share

- 2023-09: $37.33 per share

- 2023-10: $37.61 per share

- 2023-11: $40.74 per share

- 2023-12: $43.67 per share

- 2024-01: $43.31 per share

- 2024-02: $44.07 per share

- 2024-03: $46.27 per share

- 2024-04: $44.56 per share

- 2024-05: $45.69 per share

- 2024-06: $48.79 per share

- 2024-07: $47.91 per share

- 2024-08: $50.18 per share

- 2024-09: $50.58 per share

- 2024-10: $47.14 per share

- 2024-11: $50.33 per share

- 2024-12: $46.35 per share

- 2025-01: $49.50 per share

- 2025-02: $52.39 per share

- 2025-03: $54.03 per share

- 2025-04: $57.13 per share

- 2025-05: $57.25 per share

- 2025-06: $56.42 per share

- 2025-07: $57.27 per share

- 2025-08: $56.54 per share

- 2025-09: $58.74 per share

- 2025-10: $57.61 per share

- 2025-11: $61.48 per share

- 2025-12: $60.02 per share

- 2026-01: $63.34 per share

- 2026-02: $60.89 per share

- 2026-03: $53.41 per share

- 2026-04: $55.73 per share

- 2026-05: $47.60 per share

- 2026-06: $41.74 per share

- 2026-07: $37.97 per share

- 2026-08: $36.07 per share

- 2026-09: $30.12 per share

- 2026-10: $32.07 per share

## Annual estimated value (USD per share)

- FY2016: low $5.22 per share, central $7.46 per share, high $8.73 per share

- FY2017: low $5.45 per share, central $7.81 per share, high $9.15 per share

- FY2018: low $4.91 per share, central $5.56 per share, high $6.43 per share

- FY2019: low $6.96 per share, central $9.21 per share, high $10.77 per share

- FY2020: low $7.89 per share, central $10.94 per share, high $12.82 per share

- FY2021: low $10.80 per share, central $15.68 per share, high $18.41 per share

- FY2022: low $11.96 per share, central $17.41 per share, high $20.45 per share

- FY2023: low $14.59 per share, central $21.24 per share, high $24.95 per share

- FY2024: low $16.60 per share, central $24.19 per share, high $28.43 per share

- FY2025: low $18.49 per share, central $26.94 per share, high $31.66 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:24.709Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/84839/000008483926000008/rol-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.