How Does This Pest Control Business Operate?
Rollins provides pest control services to residential and commercial customers under a portfolio of service brands. The business is built around recurring service relationships, with technicians delivering ongoing inspections and treatments rather than one-off jobs. Its service model is operationally local, but the company itself operates at large scale. Rollins is valued by the market as a sizable, established services platform.
Are Margins And Cash Flow Holding Up?
FundamentalsIn the latest annual period, reported in USD, EBIT was about USD 726 million with net income of roughly USD 527 million. Profitability was supported by a 52.60% gross margin, alongside an 18.96% operating margin and a 13.77% net profit margin on a trailing basis.
Cash on hand was around USD 100 million against total debt of about USD 610 million. Depreciation and amortization totaled roughly USD 125 million, while capital spending was about USD 28 million, resulting in a cash flow proxy of about USD 648 million based on EBIT after tax plus depreciation and amortization minus capital expenditures.
Is The Market Pricing Predictable Earnings Fairly?
DCF / MultiplesAt USD 47.19, the stock trades near the middle of the DCF range, which runs from USD 28.53 in a weaker outcome through USD 46.42 centrally to USD 69.57 in a stronger outcome. That positioning aligns with a market valuation that is already demanding on headline multiples, including 42.92x trailing earnings and 27.13x EV/EBITDA.
Dependable Growth Already Priced In
TakeawayThe current price leans on earnings staying dependable year after year. That requires margins and cash generation to remain steady. If profitability fades, the valuation has less room to absorb it. The setup works best if the business keeps compounding predictably.