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' slowing organic growth puts both its earnings expectations and premium multiple at risk. Guidance fell from 7-8% to 4-6%, the quarter delivered 4.4%, and growth was 8.5% two years ago. A still-growing business can be repriced when earnings miss the model and investors pay less for each dollar earned. x.com 

Rollins' mission-critical, recurring pest control business has grown revenue for 25 consecutive years, through every crisis. About 80% of revenue is recurring, and nobody cancels pest control with termites or rodents in the house. Revenue grew 10% a year in the financial crisis and 12% in 2020, and adjusted EBITDA margins have risen to 23%. With 13% of a fragmented US market, it keeps taking share through acquisitions, operating leverage and pricing power. The catch: the stock isn't cheap. x.com 

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 

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

Waste Management's premium multiple rests on free cash flow growth, not its roughly 10% EPS growth. WM expects free cash flow to rise about 29% this year to around $3.8 billion, and it trades at 23.9x P/FCF versus 25.5x historically, with a forecast 25% annual total return and a target around $260. Its hard-to-replicate landfills, transfer stations and routes give it pricing power; it expects about $2 billion of buybacks and raised its dividend 14.5%. Multiple compression is the main risk. x.com  … Show more

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 

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 is expensive against its cash earnings. At $30.16 it trades at 18x cash earnings and 16x next year's, while the industry usually gets 12x. Fair value sits at $19.63 to $24.98, about 12x next year's cash earnings, so the price is 21% above the high end. This is a valuation read only, off reported earnings and revenue estimates, with no fundamental work. x.com