We Do Not Believe Weak 2026 Lead Volumes Are Indicators of Future Struggles; Shares Undervalued

Rollins is the second-largest pest control firm, operating residential and commercial services primarily in North America. The industry is highly fragmented, with Rollins, Rentokil, and a few smaller global competitors, along with over 40,000 regional and local players worldwide. Rollins’ scale is a cost advantage, as its local route density and ability to spread fixed costs across a larger revenue base contribute to industry-leading margins. The value of its leading brand, Orkin, also creates an intangible asset moat, as it capitalizes on industry-leading awareness to drive organic sales growth at a lower cost.