Rollins, Inc. (ROL)

NYSEIndustrialsSpecialty Business ServicesSnapshot 2026-09-04

$35.86+0.42%

Close 2026-09-04 · 1-day change

Standing thesis

The standing, falsifiable read: what has to stay true, and what would break it.

Compounder

Broken: Primary pillar broken — EPS growth reflecting operational execution: FY26 EPS guidance $0.52 vs $1.24 target.

The bull case

Rollins grows revenue about 10% yearly, driven by organic growth and acquisitions. Profit margins show slight improvement during peak season. The company maintains steady earnings with a recent EPS of $0.24. Share buybacks and a stable CFO transition support financial discipline.

The bear case

Revenue growth could slow due to market headwinds and recent stock price weakness. Profit margin gains are limited with only a 2% rise in operating income. The stock trades at a high PE of 38.6, which may not be justified if growth falters.

What's priced in

The price is about 1% above our fair value near $43, reflecting roughly 11% revenue growth expected by analysts. Our fair value is 26% below the Street median, indicating some caution versus bullish consensus.

What has to stay true

EPS growth reflecting operational executionBroken
Management Executionprimary>=$1.24 EPS for FY26 · FY26 (consensus)
Breaks if: EPS falls below $1.0 in FY26
Revenue growth from organic and acquisition sourcesBroken
Revenue Growthprimary>=10% YoY revenue growth · next 4 quarters (qualitative)
Breaks if: YoY revenue growth falls below 7% next year
Profit margin improvement during peak seasonUnder Pressure
Marginsupporting>=2% operating income growth · next 4 quarters (qualitative)
Breaks if: Operating income growth falls below 0% next year

Source: QuarterlyIQ research model· Written 2026-07-08· Health checked 2026-09-04· Version 1· Status: Broken· Reviewed when the evidence changes

This is not a price target or investment advice.

Current Outlook

Week of Sep 5, 2026

A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.

ROL's long-term thesis remains intact despite recent challenges and sector headwinds.

What kind of bet this is

ROL is positioned as a stable player in the industrials sector, focusing on organic growth and acquisitions. The current thesis reflects a medium confidence level, supported by recent revenue growth but tempered by profitability concerns.

What's priced into Rollins, Inc. (ROL)

The market appears to have a neutral view on ROL's valuation, with expectations slightly below average compared to peers. The low fragility tier suggests that the stock is not overly sensitive to negative news at this time.

What the fundamentals likely do

Management is on track with its focus on organic growth and balanced capital allocation, which has resulted in increased revenue. However, profitability improvements have lagged, and there is a risk of continued earnings misses in the near term.

What Rollins, Inc. (ROL) hinges on

The future performance of ROL will depend on guidance updates from management and the performance of sector bellwethers like CTAS, CPRT, and RBA. Positive momentum in these companies could support ROL, while negative trends may pose risks.

What changed in the latest read

What changed

The most important moves since the prior daily snapshot.

Short-term · Daily

No material changes since the prior snapshot.

Yes, our read has weakened. The latest earnings miss is a key driver. This miss reflects operational execution issues. The company's EPS guidance is significantly below expectations.

as of 2026-09-04

See upcoming information that could change the risk

Review the evidence to watch, what would become a concern, and what would make it less concerning.

Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.