Rollins

-14.82%

Rollins has been crushed. At around $29.69, the stock is down roughly 55% from its February 52-week high of $66.14. But here is the intriguing part: the business is still growing. So why has the market turned so pessimistic? Second-quarter 2026 revenue increased 7.9% to $1.08 billion, marking the 99th consecutive quarter of revenue growth. Adjusted earnings per share increased 6.7%, while net income rose 1.7%. However, profitability weakened: operating margin fell to 18.7% from 19.8%, while higher employee, fuel and other costs pressured margins. The major problem is demand. Rollins reported slower residential lead volumes, particularly through digital channels, although management said lead volumes improved toward the end of June and into July. The dividend remains attractive relative to the depressed price. The quarterly payment is $0.1825, and Rollins has continued returning cash to shareholders. The value argument is obvious: recurring revenue, consistent growth and a dramatically lower share price. The risks are slowing demand, margin pressure, acquisitions and debt costs. If lead generation recovers and margins stabilize, the stock could rebound significantly. But the market may need evidence before rerating the shares. This review is for informational and educational purposes only, not financial advice.

Rollins stock has fallen, but is this high-quality pest control company becoming a value opportunity? We analyze its business model, financial strength, dividend history, risks, and recovery potential from a value investor perspective.