Thesis: pe-rollup, analyst: spruce-point-capital, sector: pest-control.

Rollins, an S&P 500 index component, is the second largest pest control service provider in the U.S. and operates under a variety of brands such as Orkin, HomeTeam Pest Defense, Critter Control, Fox Pest Control and Western Pest Services. The Company services more than two million customers, with approximately 45% and 35% of sales to residential and commercial customers. Approximately 93% of sales are in the U.S., with the remaining 7% coming from international sales. While historically the pest control industry has exhibited healthy margins and is viewed as recession-resistant due to recurring revenues and services that were deemed essential during COVID-19, there are multiple growing long-term macroeconomic and microeconomic issues that have been identified, which are likely to pressure Rollins’ historical growth and margins.

More ... latest change: 2026-02-28

Additional comments, 20th Oct 2023 #

Spruce Point wants to provide our readers a critical update on Rollins (NYSE: ROL). This morning, Rentokil (NYSE/LON: RTO) issued its Q3 Trading Update. Rentokil is the #1 player in the North American insect and pest control market, and we believe its warning results are a clear message to Rollins' investors that significant growth and margin challenges are present. At the time of writing, Rentokil's share price is down 20%. We will explain why we believe that Rollins' share price is even more exposed than Rentokil's and we reiterate our 30%-40% downside risk to ROL's share price.

Last updated: 2026-03-07 by automated standardization process