Rollins: A Great Business At A Much Better Price

TQP Research 348 Followers Follow Summary Rollins is a resilient pest control rollup with 99 consecutive quarters of revenue growth, now trading at a more attractive valuation after a 47% price decline. I initiate a Buy rating, as ROL's durable business model and disciplined acquisition strategy support the potential for ~13% annual free cash flow growth, below its historical 15%. Recent headwinds include weaker residential lead generation and margin compression, but management notes improving lead volumes and maintains a 6%+ organic growth outlook for 2026. ROL's asset-light model enables high free cash flow, supporting both acquisitions and an 80% dividend increase from 2022–2025, though dividend growth may slow if organic growth weakens. Klaus Vedfelt/DigitalVision via Getty Images Thesis Rollins ( ROL ) is an easy business to like – it is a pest control rollup business with 99 consecutive quarters of revenue growth. The business is great, but the stock has been hard This article was written by TQP Research 348 Followers Follow TQP Research is run by a Certified Public Accountant (CPA) with several years of experience in structured finance and banking. TQP Research follows a value-oriented investment approach by identifying businesses that meet the criteria for long-term success taught by Warren Buffett, Charlie Munger, and Walter Schloss, to name a few. Investment topics will primarily include: Market analysis and macroeconomic trends, large-cap blue chip companies, deeply undervalued micro-cap and small-cap stocks that most institutional investors will avoid, and technology and market news. TQP Research enjoys actively engaging with members of the community. Please feel free to reach out with any questions or ideas! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.