| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 29 | 31.7x | 17.3x | Bottom tier | |
Growth | 58 | 8.3% | 7.1% | Around median | |
Quality | 95 | 22.6% | 4.5% | Top tier | |
Safety | 79 | 1.1x | 2.6x | Top tier | |
Capital Return | 84 | 2.11% | 0.06% | Top tier | |
Momentum | 6 | -46.4% | -1.6% | Bottom tier | |
Sentiment | 61 | 12 | 3 | Around median |
The floor: what the company is worth if growth stopped today
64% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Rollins provides pest control services through a multi-brand portfolio that includes Orkin, HomeTeam, Fox, and Northwest Exterminating. It generates revenue from residential and commercial pest control services, along with termite and ancillary services, with a significant base of recurring revenue; customer acquisition channels also vary between digital search and inbound calls at Orkin, and direct sales and relationships with homebuilders at other brands.
In Q2 fiscal 2026, revenue reached $1.1 billion, up 7.9% year over year, while organic growth was 5.7%. Residential service revenue increased 6.6%, commercial service revenue increased 8.6%, and termite and ancillary service revenue increased 10.5%; organic growth for these activities was 3.6%, 7.2%, and 8.9%, respectively, showing that the weakness was concentrated in parts of the residential business and did not affect the entire portfolio.
Net income was $143.9 million, equivalent to $0.30 per share, while GAAP operating income was $201 million, up 1.5%. Gross margin declined 100 basis points to 52.8%, and adjusted EBITDA was $236 million at a margin of 21.9%, while free cash flow reached $166 million and conversion exceeded 115%. For the twelve months reported within the 2026 data, revenue was $3.9 billion and net income was $531.7 million.
The average analyst price target is $49, with a Neutral consensus and a wide spread between a low target of $32 and a high target of $67. The average target falls between the endpoints of the 52-week range of $35.81 to $66.14 and is approximately 26% below its high, reflecting a reassessment associated with slowing residential demand and reduced growth and margin expectations. The data does not include a valid P/E multiple, so valuation sensitivity to achieving the organic growth outlook of 6% and the incremental margin outlook of 10% remains high.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
The slowdown was concentrated in parts of the residential pest control business that rely on digital search and inbound calls, particularly at Orkin. Residential organic growth was 3.6%, compared with 7.2% for the commercial business and 8.9% for termite and ancillary services. Management reported that demand for some one-time residential services, such as rodents and carpenter ants, declined between 30% and 50% during parts of the quarter, without a notable deterioration in customer retention.
The company expects organic growth of at least 6% and an incremental margin of at least 10% in fiscal 2026. It expects margin improvement to be more heavily concentrated in Q4 fiscal 2026 due to the difficult comparison in Q3. It also maintained its forecast for acquisitions to contribute 2% to 3% of revenue growth and for free cash flow conversion to exceed 100%.
Management said on the July 23, 2026 call that lead flows and call volumes improved at the end of June and remained positive during the first weeks of July. Lead volume at that time approached the prior-year level, with improvements in lead quality, close rates, and service starts. Nevertheless, the company maintained a cautious outlook because the improvement had been in place for only a few weeks and because demand had shifted rapidly during the first half.
Automated analysis for informational purposes only — not investment advice.
Orkin relies more heavily on consumer responses to existing problems through digital search and inbound calls, so it was affected more by weak residential demand in Q2 fiscal 2026. In contrast, HomeTeam relies on relationships with homebuilders, while Fox uses direct door-to-door sales to market preventive protection. HomeTeam delivered double-digit residential growth, while Fox recorded high-teens organic growth, partially mitigating the impact of weakness at Orkin.
Gross margin declined 100 basis points to 52.8% in Q2 fiscal 2026. Personnel-related costs, including medical expenses and weak service payroll absorption, contributed 70 basis points of pressure, while fleet and fuel added 20 basis points. Fuel represented approximately 1.8% of sales, and its total cost increased 30%, despite an 8% improvement in monthly miles driven per vehicle.
Rollins spent approximately $117 million on acquisitions in Q2 fiscal 2026, with Romex being the largest transaction alongside several small acquisitions. Management expects mergers and acquisitions to add 2% to 3% to fiscal 2026 revenue growth and described the deal pipeline as strong. In the same quarter, the company generated $173 million in operating cash flow and $166 million in free cash flow, compared with $88 million in dividends.