ROLLINS INC (ROL) AI Stock Summary
Profitable grower at a premium price
Updated
Snapshot
Rollins is a profitable pest-control business with a $26.7 billion market cap. It generated $3.76 billion in revenue for fiscal 2025, up 11 percent from the prior year, and earned $527 million in net profit. The company produces strong cash flow, generating $650 million in free cash flow after reinvestment. It holds $100 million in cash against $1.33 billion in debt, a manageable load given the cash it throws off. The stock trades at a P/E of 50, a rich valuation that prices in continued high growth. The share price is currently in the lower portion of its 52-week range, sitting just 1 percent below its recent high.
What's Happening Right Now
- Thu 14th May '26 · Strategy Update: Rollins reaffirmed its long-term growth targets of 7 to 8 percent organic revenue growth plus 2 to 3 percent from acquisitions.
- Wed 22nd Apr '26 · Earnings Beat: Q1 2026 revenue hit $906 million, beating estimates and growing 10.2 percent year-over-year, driven by a strong March rebound.
- Wed 22nd Apr '26 · Dividend: The board declared a quarterly cash dividend of $0.1825 per share, payable in June 2026.
Bottom Line
Rollins is a high-quality compounder with a long track record of double-digit revenue growth and strong margins. The business model is resilient, supported by recurring residential and commercial contracts. The recent Q1 earnings beat confirms the growth momentum is intact, though operating margins dipped slightly due to higher costs. The main trade-off is the price: at 50 times earnings, the stock is expensive. A reader looking for a bargain is in the wrong aisle, but those who believe the growth story will continue may find the current dip from highs interesting.