ROL Stock Analysis — Rollins, Inc.
Sector: Consumer Services
AI Verdict
Rollins trades at 36.4x next year's earnings while expected to grow EPS by 16.8%—that's expensive for the growth on offer, and even its service moat may not protect the stock if expectations slip.
Competitive Moat
Rollins operates the Orkin pest control brand, with a dense service network and recurring residential contracts that create high switching costs. Its scale and brand recognition in pest management make it difficult for smaller competitors to match its reach or reputation.
Summary
Rollins is notable for its defensive, subscription-like pest control business but is trading at a premium despite recent underperformance.
Where It Stands
The stock is down -19.69% over the past year, has an RSI of 23.9 (deeply oversold), and trades at 36.4x forward earnings versus a consumer services sector median of ~20x.
Key Metrics
- RSI: 23.9 — Oversold
- Trailing P/E: 42.5x
- Forward P/E: 36.4x
- PEG Ratio: 3.15
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $22.4B
- Dividend Yield: 0.02%
- 1-Year Return: -19.69%
- 52-Week High: $66.14
- 52-Week Low: $44.43
Analyst Consensus
15 Buy · 8 Hold · 0 Sell (23 analysts)
Bull Case
Analysts expect 16.8% EPS growth next year, so if Rollins delivers, the 36.4x forward P/E could be justified by its sticky, recession-resistant business model.
Bear Case
If the P/E compresses to the sector median of 20x, the stock would face a further 45% downside from current valuation levels.
Catalyst to Watch
Watch for upcoming earnings to confirm whether the 16.8% EPS growth forecast is achievable, as a miss could trigger further multiple contraction.