Rollins, Inc. (ROL): A Bull Case Theory

We came across a bullish thesis on Rollins, Inc. (ROL) on FluentinQuality’s Substack. In this article, we will summarize the bulls’ thesis on ROL. Rollins, Inc. (ROL)'s share was trading at $56.88 as of 13^th June. ROL’s trailing and forward P/E were 57.45 and 51.28 respectively according to Yahoo Finance.

Rollins is a masterclass in quiet compounding, delivering decades of steady growth by focusing on an essential, recurring service: pest control. It’s not a flashy business—it deals in ant trails and termite tunnels rather than tech or AI—but its simplicity is its strength. With over 80% of its revenue coming from service-based contracts that span seasons and even lifetimes, Rollins monetizes the calendar, not one-time projects.

The pest control industry itself is highly fragmented, local in nature, and insulated from economic cycles, creating an ideal landscape for Rollins’ disciplined, route-dense M&A strategy. Rather than acquiring flashy platforms, the company buys trusted mom-and-pop firms, preserving local brand equity while benefiting from national scale. Its flagship brand, Orkin, is just the tip of the iceberg; the real engine is a deep bench of regional names like HomeTeam, Clark Pest Control, and Critter Control, all integrated with a soft touch that minimizes churn and retains operators.

The business is defensible by design—anchored in licenses, trucks, and long-standing customer trust—not easily disrupted by digital innovation. With high gross margins, low capital intensity, and predictable cash flows, Rollins quietly compounds value while requiring minimal reinvestment. A modest but reliable dividend, backed by a fortress balance sheet, adds to its appeal for long-term investors.

Bugs don’t care about recessions, and neither does Rollins, which continues to grow through thick and thin. It’s the type of stock that goes unnoticed until it’s 10x’d in your portfolio over 20 years—a royalty in pest control that rewards patience and belief in the mundane.

Previously, we covered a standout bullish thesis on SAP SE by the same author in May 2025, which highlighted its shift to cloud-first operations, high customer stickiness, and strategic AI integration. With mission-critical software embedded across global enterprises, SAP is quietly compounding as a digital backbone—profitable, indispensable, and poised for durable, margin-expanding growth.

Rollins, Inc. (ROL) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Rollins, Inc. (ROL) at the end of the first quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of ROL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.