'Keys To Success' Rollins' Domination Of Pest Control Since 1901

Feb. 14, 2019 1:12 PM ETRollins, Inc. (ROL)7 Comments
Harrison Caplan profile picture
Harrison Caplan


  • Rollins is the leading pest control and service company.
  • Long-term success has been attributed to outstanding financial success driven from superb operational execution.
  • Rollins' strong OCF and FCF generation have been a boon for their growth allowing to self-finance operations and execute accretive acquisitions without debt.
  • Look for Rollins to continue creating shareholder value through margin expansion through operational synergies from M&A and cost management.
  • Rollins is "Best in Breed" due to their operational prowess financial savviness.


The test of time is among the most powerful assessments a company can face. Few are truly able to survive and tell their tale. The few that do survive, all share attributes that have imparted such firms near invincibility in a spectrum of economic and industry-wide environments. Such attributes include:

  • provides critical repair and maintenance services, or sells essentials
  • serves a customer base that is insulated from an economic meltdown
  • provides products or services that are mandated by government regulation or compliance rules
  • provides proprietary, niche or highly defensible products or services.

The pest control and extermination industry is by no means the most "flashy" industry, however, it's great one nonetheless. The pest control services industry is expected to be a $28.85B industry by 2027, according to a new report by Future Market Insights. The report cites that robust CAGR of 5.1% will be driven by "growing urbanization and increasing consumer awareness about health and hygiene are factors expected to increase uptake of pest control services over the forecast period." Lastly, the report claims that "Conducive weather conditions for propagation of pests is leading to further increase in pest population across the globe." In all honesty, I do not think we needed a market research report to tells us all that. Rather it is safe to assume that we have already seen these market trends unfold before our very eyes.

Moreover, the industry does not seem to be overly affected by adverse macroeconomic scenarios given that the services being offered are vital no matter how the economy is performing. Such services are crucial to public health and well-being. I know that bed bugs, rats, termites, ants, and other pests will not disappear and will continue to evolve as will their methods to eliminate them.


Incorporated in 1948

This article was written by

Harrison Caplan profile picture
Hello, my name is Harrison Caplan. I am a Portfolio Valuations Analyst at Valuation Research Corporation. Give me any type of security: Debt, Equity, Warrants/Options, Hybrid, Convertibles, etc., I can value it.Former CFO & Chief Economist of the D'Artagnan Capital Fund.As a young investor, my goal is to both quantify and qualify sound money making opportunities that are long-term oriented in a drastically changing world. Having started invested at age 16 ~ and now at the ripe of age 21 and a Senior at Xavier University, I have used my age as a springboard in developing a working knowledge of what trends young people are drawn towards, then balancing that awareness with the wisdom of men such as Warren Buffett. (My idol)Though young and self-taught, I realize that any wholistic analysis of a company must be accompanied by sound research and "the numbers" which will vouchsafe the presented investment thesis.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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