Thoughts on Rollins ROL NYSE

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Seems to be a solid growth company, but not sure of forward

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Asked on July 2, 2025 9:31 am
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Interesting company. From an industry standpoint, I can't say I've ever looked too deep into the pest control market.

The underlying company itself from a numbers perspective is rock-solid. Great returns on invested capital, rock-solid balance sheet. Margin profile is great with operating margins of near 20%.

My only issue here right now is valuation. It is far and beyond anything I would pay for a company with its level of growth. We're talking 10-12% expected earnings growth in the future but also one that is trading at 45x expected earnings and free cash flow.

This is one I would personally attach to my watchlist and watch for any sort of pullback. Great company, but I just wouldn't pay the price it is trading at right now.

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Posted by Dan Kent
Answered on July 3, 2025 9:39 pm