ROL
Rollins, Inc.
Dividend / Cash flow
★ Quality 82/100Price today
$35.86
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What this business is made of
The business
They charge a subscription as long as cockroaches exist: eternal rent on bugs.
Rollins is pest control. Through Orkin and a dozen brands, they exterminate termites, rodents, and insects for homes and businesses. The trick is the recurring contract: $3.8B in revenue in 2025, most of it subscriptions that renew themselves as long as cockroaches keep existing.
Route density and brand. Orkin has been around over 120 years; when you have pests, you call the name you know, you don't shop around. Dense local routes make each visit cheaper than a scattered competitor's. It's an execution moat, not a patent one — replicable in theory, costly in practice.
Revenue history
From $2.4B to $3.8B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $3.8B · FY2025
Of every $100 in sales, $86 goes to costs and operations; $14 is left as net profit (14% margin).
Catalysts and risks
Bolt-on acquisitions: Rollins buys ~30-40 local operators a year, consolidating a fragmented market of thousands of small players.
18% FCF margin on $3.8B generates $0.7B of cash to reinvest and raise the dividend, which has grown double digits for years.
Organic growth of 7-8% from price hikes customers barely notice on a small monthly bill.
Trades at 23x normalized FCF. Excellent business, price that already prices in a lot of excellence.
Growth depends on continuing to buy routes; if good targets run out, the M&A engine cools off.
A deep recession cuts discretionary commercial spending on fumigation, though residential holds up well.
Charlie's note
“A boring business that prints money because pests don't go into recession. The problem isn't Rollins, it's paying 23 times for something everyone already knows is good.”
Analysis · June 2026
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