NYSEIndustrialsSpecialty Business ServicesSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — EPS growth reflecting operational execution: FY26 EPS guidance $0.52 vs $1.24 target.
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.
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.
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.
Breaks if: EPS falls below $1.0 in FY26
Breaks if: YoY revenue growth falls below 7% next year
Breaks if: Operating income growth falls below 0% next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on organic growth and acquisitions. The current thesis state is stable, although recent earnings misses have raised some concerns.
The market currently prices ROL with a low expectations gap, indicating that it is seen as justified in its valuation compared to peers. There is a slight premium versus its industry, suggesting that investors expect steady performance.
Management is on track with its priorities for organic growth and balanced capital allocation, but profitability improvements are lagging. Recent financial performance has been neutral, with a low probability of missing estimates in the near term.
The long-term thesis hinges on the performance of sector bellwethers like CTAS, CPRT, and RBA. Positive earnings and guidance from these companies could support ROL, while any negative shifts could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The latest earnings miss is a key factor. This miss reflects poor operational execution. It has lowered expectations for future performance.
as of 2026-08-31
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.
Overall, ROL's fundamentals are stable, but the company faces risks from sector performance and its own profitability challenges. Not investment advice.
