Rollins, owner of Orkin, is a solid buy because its route-based pest-control model, with recurring revenue, strong retention, pricing power and low capital needs, lets it keep consolidating a fragmented industry while weaker competitors struggle. Leverage is just 1x, revenue grew 7.9% with organic growth above 6%, and consensus sees 12% growth in 2027 and 11% in 2028. Shares trade near $36 versus $42 of intrinsic value. x.com 

Nothing is wrong with Rollins' pest control business, even though the stock is down nearly 50% on the year; its fundamentals keep going up and to the right. Multiple contraction from around 50x earnings is one reason for the drop. x.com  x.com 

Rollins still looks expensive for a pest control company at about 29x earnings and 26x forward, even after falling from a stupidly expensive 65x. @DudeWhoInvests notes the stock is down nearly 50% this year while fundamentals kept rising. x.com 

Rollins' multiple broke before its business did, easing the old valuation objection. Forward P/E fell from about 48x to 28-29x while 2027 EPS estimates fell only 6-8% after a Q2 reset in residential brands. Pest control is a route-density game; if density, pricing and bolt-ons compound EPS ~10%, a low-$60s to low-$70s stock by 2032 means 13-17% a year from ~$33. The next two quarters decide it, so watch for organic growth near 7% with recovering margins. 25x, about $32, is the bear-case floor. … Show more

Rentokil remains cheap, though cheapness is not a thesis after organic growth decelerated and it pulled its 2027 margin target to reinvest. It trades at 16x 2026 and 14.5x 2027 earnings, organic growth should likely improve on the back of that reinvestment, and the commercial focus is good. The quarter was worse for Rollins than for Rentokil. x.com 

Ongoing LLM pressure on lead generation and private-equity competition make Rollins look expensive. Guidance was cut for a second straight quarter, with implied fourth-quarter residential growth potentially negative. A price closer to $25 looks like an opportunity to scale back into a short. x.com 

These 12 stocks are quality compounders sharing pricing power, recurring demand, strong returns on capital and disciplined management. Domino's earns royalties, AutoZone serves an aging fleet, Progressive underwrites with data, Waste Management owns routes and landfills, Grainger is embedded in operations, S&P Global and FICO are mission-critical, Rollins has recurring pest control, Copart an auction network, Visa a fee network, HEICO niche aerospace parts, Costco loyal members. x.com  x.com  … Show more

Pool Corporation is a durable compounder because it sells recurring access to an installed base of millions of pools that must be maintained for decades. Once a homeowner spends six figures on a pool, chemicals, pumps, filters and heaters become near-mandatory buys, and few pools ever disappear, so the base keeps growing. Inflation lifts replacement prices without more units. Even 5% annual growth takes revenue from about $5.3 billion to $8.6 billion in a decade, and buybacks could double EPS. … Show more

Rollins and Rentokil are pest-control roll-ups built on cheap money, which let them pay acquisition multiples that only made sense thanks to Rollins' premium valuation. Unlike aerospace aftermarket parts makers or specialty MEP contractors, pest control is commoditized: treating a house or a larger building uses a similar process, which means more competition and less profit. David Royce founded and sold four pest-control companies, often to Terminix, now part of Rentokil. x.com 

Rollins is spending more just to stand still, so a ~50% drop does not make it cheap. With ~15-20% blended churn, 5% growth needs about 20% new customers, three in four just refilling the base. Sales and marketing per $1 of organic revenue added rose from $2.07 in FY25 to $2.37 in H1 2026, effectively maintenance capex. Q2 cut organic growth guidance to at least 6% and incremental margin to at least 10% versus a 30%+ target. AI search, an FTC non-compete ban and staff turnover add headwinds. … Show more