ROL: 2026 Investor Day Takeaways

研报英文原文证据摘录

ROL: 2026 Investor Day Takeaways

Rollins, Inc.

Target/Upside/Downside Scenarios Investment summary

We see value in the pest control industry with ~80%+ customerRollins, Inc.

retention, contracted revenue, and positive pricing, which

75 125 Weeks 22DEC23 - 14MAY26 support revenue consistency and ~25% EBITDA margins;

70 TARGETTARGET 67.0067.00 meanwhile, low/negative working capital and capex support 65

60 strong free cash conversion. Over time, we see U.S. pest

55 CURRENTCURRENT 53.4253.42 control being a mid-single-digit grower; in a market where

50 scale matters, Rollins has ~20% share.

35 Potential catalysts: 1) Sustained organic revenue growth;

30 2) attractive M&A activity; 3) meaningful margin expansion

40m driven by 30%+ contribution margins; and 4) higher operating

30m

20m 10m leverage following technology initiatives.

2024 2025 2026

D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M

ROL US Rel. S&P 500 COMPOSITE MA 40 weeks Risks to rating and price target

Source: Bloomberg and RBC Capital Markets estimates for Target 1) Potentially shifting U.S. pest industry to become more

Valuation competitive (e.g., Terminix executing better; international

players aggressively expanding North America footprint); 2)Our $67 price target is based on ~47x our FY27E EPS in

operational/execution hiccups; 3) cost inflation (e.g., wages/line with the ROL's 5-year PE avg, given sustained organic

benefits, materials/supplies, fuel/vehicle); 4) acquisitiongrowth, margin expansion opportunities and a BS and FCF

integration challenges; and 5) weather fluctuations can causegeneration that supports ongoing accretive M&A. Our price

variability in financial results.target supports our Outperform rating.

Upside scenario

Our upside scenario could result in ~10% upside to our FY27E