Rollins, Inc.
ROLRollins turns an unglamorous but essential service into predictable, recurring cash that compounds over time.
Because boring, necessary services often make the best 20-year investments.
Business Model
Recurring pest control services
It provides inspection, prevention, and treatment services to homes and businesses on ongoing contracts.
Economic Engine
High cash generation
Nearly half of revenue remains after direct costs, and free cash flow exceeds reported profit.
Long-Term Lens
Fragmented industry consolidation
The big question is whether Rollins can keep buying smaller operators and raising standards over decades.
BinaPrint Snapshot
Style
Build
Fitness
Strong
Updated Mar 8, 2026
On this page
Company Story
How do Rollins, Inc.'s business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“A steady, recession-resistant service business with durable cash flow and disciplined growth that could compound for decades if it keeps consolidating a fragmented industry.”
What does Rollins, Inc. actually do?
Rollins provides pest control and termite protection services to homes and commercial properties.
- Inspects and treats homes for insects, rodents, and termites
- Provides ongoing prevention plans with scheduled visits
- Serves businesses like restaurants, warehouses, and offices
Why it matters
Pest control is not optional
Termites and health regulations do not wait for economic recoveries, which makes demand steadier than most consumer services.
How does Rollins, Inc. make money?
Rollins charges customers for inspections, treatments, and recurring service contracts.
- Recurring residential service plans create repeat revenue
- Commercial contracts bring steady, long-term relationships
- Add-on services like termite protection increase lifetime value
Economic clue
Strong margins and cash conversion
With a gross margin of 49.4 percent and free cash flow running at 1.23 times net income, the business turns service visits into real cash.
Why do long-term investors keep Rollins, Inc. on the radar?
It combines steady demand, disciplined growth, and strong cash flow in a fragmented industry.
- Revenue has grown about 11.6 percent per year on average over five years
- Earnings per share have grown about 10.9 percent per year over five years
- The balance sheet and cash generation rank among the strongest in its peer group
Investor takeaway
Build-style compounder
Rollins reinvests heavily into growth rather than paying large dividends, which can amplify compounding over 10 to 20 years.
Based on company financial statements.
What Could Change The Story
- Proved it would move the profile toward Venture.
- Matured would move the profile toward Vault.
Benchmark Comparison
How has Rollins, Inc. performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$1,769
+76.9% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| ROL | +76.9% | $1,769 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame Rollins, Inc.
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- A steady business tied to essential household and commercial needs
- Consistent double-digit revenue and earnings growth
- Strong cash generation with limited financial stress
Be Careful If You Expect
- Rapid, explosive growth from new technologies
- High dividend income today
- Huge operating margin expansion from already healthy levels
What To Watch Over Time
- Whether operating margins continue to contract or stabilize
- The pace and price discipline of acquisitions
- Retention rates on recurring service contracts
BinaPrint Position
Where does Rollins, Inc. sit on the BinaPrint map right now?
Test whether business quality and financial profile match the company's stated narrative.
Advanced BinaPrint details
Open the axes, investor fit, and risk framing behind this profile.
Key Metrics
Which metrics matter most for Rollins, Inc. right now?
Three durable business metrics that matter more than day-to-day price moves.
11.6% per year
10.9% per year
49.4% gross margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | 11.6% per year | Shows whether the business has been expanding fast enough to create more long-term value. |
| EPS Growth | 10.9% per year | Shows whether earnings per share are compounding for owners over time. |
| Margin Quality | 49.4% gross margin | Shows how much room the business has to fund growth, absorb shocks, and stay profitable. |
Based on company financial statements.
Fundamentals
What do Rollins, Inc.'s fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
22.8% ROIC
49.4% gross margin
17.3% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 22.8% ROIC | The business is currently showing excellent capital efficiency. |
| Profitability | 49.4% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 17.3% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold Rollins, Inc.?
Rollins, Inc. currently appears in these ETF and fund proxies.
SPY
SPDR S&P 500 ETF Trust
IWB
iShares Russell 1000 ETF
Questions & Answers
What questions come up most often about Rollins, Inc.?
Company-specific questions readers often ask about Rollins, Inc..
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
Rollins provides pest control, termite protection, and related services to residential and commercial customers through recurring service plans.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
Essential service demand means homeowners and businesses rarely eliminate pest control, even in recessions, supporting steady long-term revenue growth around 11 percent per year.
A fragmented industry provides a long runway for acquisitions, allowing Rollins to compound by absorbing smaller competitors and spreading overhead across a larger base.
Strong cash conversion, with free cash flow at 1.23 times net income, gives management dry powder to reinvest without straining the balance sheet.
Nearly 50 percent gross margins provide room to absorb cost shocks and still earn attractive profits in a labor-driven business.
Bear case
What can break
Low barriers to entry mean local competitors can undercut pricing, especially if labor markets loosen and new operators enter the field.
Regulatory changes restricting certain chemicals or treatment methods could raise costs or reduce effectiveness, hurting margins and reputation.
Labor intensity makes the model vulnerable to wage inflation, which has already contributed to contracting margins.
Overpaying for acquisitions in a competitive consolidation race could permanently reduce returns on capital.
Risk Radar
Key Risks
Where downside pressure can build.
Labor cost pressure: With operating margin at 19.4 percent and contracting, a few percentage points of wage inflation could materially compress profits.
Acquisition risk: Growth relies partly on buying smaller firms, and overpaying could reduce future returns and slow earnings growth from the recent 10.9 percent average.
Regulatory risk: Changes in environmental or chemical regulations could increase compliance costs across a nationwide footprint.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $58.28
- Daily move
- +0.19%
Peer Set
A compact peer list for side-by-side context.
Next Actions
Explore planning scenarios or keep browsing similar companies.