Rollins Inc. shows strong fundamentals despite recent stock decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 08 2026
0mins
Source: Fool
Rollins Inc. has seen its stock price drop by 3.15%, hitting a 52-week low amid a generally positive market with the Nasdaq-100 up 0.84%.
Despite the stock's decline, Rollins has demonstrated strong revenue growth with an 11.7% compound annual growth rate over the past five years, alongside an elite gross margin of 52.2%. These factors indicate a solid competitive position and financial flexibility, suggesting that the recent price drop may present a buying opportunity for investors.
The company's excellent free cash flow margin of 16.1% further supports its ability to invest in new products and navigate market downturns, making it an attractive option for potential investors looking for value.
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Analyst Views on ROL
Wall Street analysts forecast ROL stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 42.800
Low
55.00
Averages
68.11
High
72.00
Current: 42.800
Low
55.00
Averages
68.11
High
72.00
About ROL
Rollins, Inc. is a global consumer and commercial services company. The Company provides essential pest and wildlife control services and protection against termite damage, rodents, and insects to both residential and commercial customers through its subsidiaries and independent franchises located in over 70 countries, including in the United States, Canada, Australia, Europe, and Asia with international franchises in Canada, Central and South America, and others. It operates under one segment, including its three service offerings: Residential service includes pest control services protecting residential properties from common pests, including rodents, insects, and wildlife; Commercial services consist of workplace pest control solutions for customers across diverse end markets, such as healthcare, food service, and logistics, and Termite and Ancillary services offer termite protection services and ancillary services for both residential and commercial customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rollins Q1 Earnings Analysis: Buy, Sell, or Hold?
- Strong Revenue Growth: Rollins has achieved an impressive 11.7% compound annual growth rate over the past five years, surpassing the average for the industrial sector, indicating strong customer resonance and enhancing its competitive position in a challenging market.
- Elite Gross Margin: With an average gross margin of 52.2% over the last five years, Rollins only pays $47.76 to suppliers for every $100 in revenue, showcasing best-in-class unit economics that support investments in research and development.
- Excellent Free Cash Flow: Averaging a free cash flow margin of 16.1% over the past five years, Rollins is well-positioned to invest in new products and consolidate the market during downturns, enhancing its financial flexibility and competitive edge.
- Investment Opportunity Post-Decline: Despite a 25.8% drop in stock price over the last six months, trading at a forward P/E of 35.1, investors need to assess whether this presents a good entry point into the stock.
See More
Orkin Launches Insect 2151 Science Fair to Inspire Teen Innovation
- Scholarship Incentives: Orkin's launch of the Insect 2151 Science Fair offers up to $180,000 in scholarships to winning projects, aiming to inspire teens aged 14-18 to explore entomology and cultivate future innovators, thereby enhancing scientific education and career development.
- Opportunities for Scientific Exploration: The competition encourages students to use insect-inspired ideas to address real-world challenges over the next 125 years, helping them develop critical thinking and innovation skills in science, which can contribute to solutions for complex societal issues.
- Survey Results Support: A YouGov survey indicates that 44% of teens are curious about insects and 50% want to learn more, highlighting potential interest in insect science; Orkin aims to reignite student engagement with insects through this initiative, promoting scientific education.
- Historical Legacy and Future Vision: As Orkin celebrates its 125th anniversary, it continues to invest in insect science education by supporting the Urban Entomology Professorship at the University of Georgia, reflecting the company's long-term commitment to scientific research and the cultivation of future scientists and innovators.
See More
Orkin Launches Insect 2151 Science Fair with $180,000 in Scholarships
- Innovation Challenge: Orkin has launched the Insect 2151 Science Fair to encourage students aged 14-18 to explore entomology and inspire future innovations, with a total scholarship pool of $180,000, including a $100,000 prize for the first place, reflecting the company's commitment to education.
- Student Engagement: A YouGov survey indicates that 44% of teens are curious about insects and 50% want to learn more; the fair aims to enhance student interest in insect science through innovative learning methods, fostering future career paths.
- Interdisciplinary Integration: The fair encourages students to apply insect inspiration across various fields such as technology and environmental sciences, showcasing how insect science can intersect with modern technology to address complex societal issues like public health and food security, promoting sustainability.
- Legacy and Future Vision: As Orkin celebrates its 125th anniversary, it continues to support insect science education by endowing the Urban Entomology Professorship at the University of Georgia, making the fair not only a tribute to the past but also an investment in the next generation of innovators.
See More
Stock Performance Comparison: NXPI vs ROL
- Stock Performance Analysis: NXPI is currently trading down approximately 3.3%, while ROL is down about 2.9%, indicating a similar trend in market volatility that may reflect overall market sentiment.
- Market Sentiment Impact: The comparable declines in both stocks suggest a cautious attitude among investors towards the semiconductor sector and related companies, potentially influencing short-term investment decisions.
- Investor Focus: Despite the declines in NXPI and ROL's stock prices, investors should remain attentive to their fundamentals and future growth potential to identify opportunities during market corrections.
- Industry Trend Observation: The current price fluctuations may be linked to macroeconomic factors and industry dynamics, prompting investors to closely monitor relevant market indicators to assess future trends.
See More
Boston Scientific Shares Hit 52-Week Low Amid Weak Growth Outlook
- Boston Scientific Stock Decline: Boston Scientific shares fell to a 52-week low of $48.13, experiencing a 16% weekly drop due to weak expectations for its Watchman heart device business, with management indicating that U.S. revenue may remain weak for the next two quarters, prompting analysts to lower price targets.
- Li Auto's Profitability Pressure: Li Auto reported weaker profits in its Q1 earnings, forecasting Q2 deliveries between 95,000 and 100,000 vehicles, reflecting soft demand and intense competition in China's EV market, leading Barclays to cut its price target from $18 to $14, implying nearly a 7% downside.
- Rollins Valuation Reset: Rollins reached a new low of $46.85 despite solid operating performance, as investors focused on valuation concerns, with Bernstein downgrading the stock and lowering its price target from $70 to $52, citing the potential negative impact of CFO Ken Krause's departure on profitability.
- Market Sentiment Shift: The stocks of Boston Scientific and Rollins have declined over 49% and 20% respectively this year, while Li Auto has shed over 11%, indicating a shift in investor confidence away from premium-priced growth stocks, with market sentiment changing from 'extremely bullish' to 'bullish'.
See More
Rollins Shares Drop After CFO Resignation and Downgrade
- Stock Decline: Rollins (ROL) shares fell 3.8% to a 52-week low of $46.85 on Friday, primarily due to Bernstein downgrading its rating from Outperform to Market Perform and slashing the price target from $70 to $52, reflecting market concerns about the company's future performance.
- CFO Resignation Impact: The resignation of CFO Ken Krause, considered a central figure in the company's potential margin transformation story, occurred less than two weeks after the Investor Day where he presented a detailed gross margin expansion roadmap, leading to diminished market confidence in the company's future.
- Analyst Perspective Shift: Bernstein analyst Connor Cerniglia noted that Krause's departure has lowered his confidence in Rollins' 30%-35% incremental EBITDA margin target, although he still sees long-term structural prospects for the pest control industry, he expresses skepticism about Rollins' execution capabilities.
- Historical Performance Reference: Cerniglia referenced Krause's successful track record at MSA Safety, where he reduced SG&A as a percentage of sales by 570 basis points over seven years while boosting earnings per share by 118%, which had led to high expectations for his performance at Rollins, but the outlook now appears less optimistic.
See More
Rollins Q1 Earnings Analysis: Buy, Sell, or Hold?
- Strong Revenue Growth: Rollins has achieved an impressive 11.7% compound annual growth rate over the past five years, surpassing the average for the industrial sector, indicating strong customer resonance and enhancing its competitive position in a challenging market.
- Elite Gross Margin: With an average gross margin of 52.2% over the last five years, Rollins only pays $47.76 to suppliers for every $100 in revenue, showcasing best-in-class unit economics that support investments in research and development.
- Excellent Free Cash Flow: Averaging a free cash flow margin of 16.1% over the past five years, Rollins is well-positioned to invest in new products and consolidate the market during downturns, enhancing its financial flexibility and competitive edge.
- Investment Opportunity Post-Decline: Despite a 25.8% drop in stock price over the last six months, trading at a forward P/E of 35.1, investors need to assess whether this presents a good entry point into the stock.
See More
Orkin Launches Insect 2151 Science Fair to Inspire Teen Innovation
- Scholarship Incentives: Orkin's launch of the Insect 2151 Science Fair offers up to $180,000 in scholarships to winning projects, aiming to inspire teens aged 14-18 to explore entomology and cultivate future innovators, thereby enhancing scientific education and career development.
- Opportunities for Scientific Exploration: The competition encourages students to use insect-inspired ideas to address real-world challenges over the next 125 years, helping them develop critical thinking and innovation skills in science, which can contribute to solutions for complex societal issues.
- Survey Results Support: A YouGov survey indicates that 44% of teens are curious about insects and 50% want to learn more, highlighting potential interest in insect science; Orkin aims to reignite student engagement with insects through this initiative, promoting scientific education.
- Historical Legacy and Future Vision: As Orkin celebrates its 125th anniversary, it continues to invest in insect science education by supporting the Urban Entomology Professorship at the University of Georgia, reflecting the company's long-term commitment to scientific research and the cultivation of future scientists and innovators.
See More
Orkin Launches Insect 2151 Science Fair with $180,000 in Scholarships
- Innovation Challenge: Orkin has launched the Insect 2151 Science Fair to encourage students aged 14-18 to explore entomology and inspire future innovations, with a total scholarship pool of $180,000, including a $100,000 prize for the first place, reflecting the company's commitment to education.
- Student Engagement: A YouGov survey indicates that 44% of teens are curious about insects and 50% want to learn more; the fair aims to enhance student interest in insect science through innovative learning methods, fostering future career paths.
- Interdisciplinary Integration: The fair encourages students to apply insect inspiration across various fields such as technology and environmental sciences, showcasing how insect science can intersect with modern technology to address complex societal issues like public health and food security, promoting sustainability.
- Legacy and Future Vision: As Orkin celebrates its 125th anniversary, it continues to support insect science education by endowing the Urban Entomology Professorship at the University of Georgia, making the fair not only a tribute to the past but also an investment in the next generation of innovators.
See More
Stock Performance Comparison: NXPI vs ROL
- Stock Performance Analysis: NXPI is currently trading down approximately 3.3%, while ROL is down about 2.9%, indicating a similar trend in market volatility that may reflect overall market sentiment.
- Market Sentiment Impact: The comparable declines in both stocks suggest a cautious attitude among investors towards the semiconductor sector and related companies, potentially influencing short-term investment decisions.
- Investor Focus: Despite the declines in NXPI and ROL's stock prices, investors should remain attentive to their fundamentals and future growth potential to identify opportunities during market corrections.
- Industry Trend Observation: The current price fluctuations may be linked to macroeconomic factors and industry dynamics, prompting investors to closely monitor relevant market indicators to assess future trends.
See More
Boston Scientific Shares Hit 52-Week Low Amid Weak Growth Outlook
- Boston Scientific Stock Decline: Boston Scientific shares fell to a 52-week low of $48.13, experiencing a 16% weekly drop due to weak expectations for its Watchman heart device business, with management indicating that U.S. revenue may remain weak for the next two quarters, prompting analysts to lower price targets.
- Li Auto's Profitability Pressure: Li Auto reported weaker profits in its Q1 earnings, forecasting Q2 deliveries between 95,000 and 100,000 vehicles, reflecting soft demand and intense competition in China's EV market, leading Barclays to cut its price target from $18 to $14, implying nearly a 7% downside.
- Rollins Valuation Reset: Rollins reached a new low of $46.85 despite solid operating performance, as investors focused on valuation concerns, with Bernstein downgrading the stock and lowering its price target from $70 to $52, citing the potential negative impact of CFO Ken Krause's departure on profitability.
- Market Sentiment Shift: The stocks of Boston Scientific and Rollins have declined over 49% and 20% respectively this year, while Li Auto has shed over 11%, indicating a shift in investor confidence away from premium-priced growth stocks, with market sentiment changing from 'extremely bullish' to 'bullish'.
See More
Rollins Shares Drop After CFO Resignation and Downgrade
- Stock Decline: Rollins (ROL) shares fell 3.8% to a 52-week low of $46.85 on Friday, primarily due to Bernstein downgrading its rating from Outperform to Market Perform and slashing the price target from $70 to $52, reflecting market concerns about the company's future performance.
- CFO Resignation Impact: The resignation of CFO Ken Krause, considered a central figure in the company's potential margin transformation story, occurred less than two weeks after the Investor Day where he presented a detailed gross margin expansion roadmap, leading to diminished market confidence in the company's future.
- Analyst Perspective Shift: Bernstein analyst Connor Cerniglia noted that Krause's departure has lowered his confidence in Rollins' 30%-35% incremental EBITDA margin target, although he still sees long-term structural prospects for the pest control industry, he expresses skepticism about Rollins' execution capabilities.
- Historical Performance Reference: Cerniglia referenced Krause's successful track record at MSA Safety, where he reduced SG&A as a percentage of sales by 570 basis points over seven years while boosting earnings per share by 118%, which had led to high expectations for his performance at Rollins, but the outlook now appears less optimistic.
See More
