This is a step-by-step stock review to answer the question, is Rollins (ROL) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Rollins (ROL) stock a good buy?
1. Rollins Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded: 1948, in Atlanta, Georgia, by brothers John W. Rollins and O. Wayne Rollins as Rollins Inc., initially focused on trucking and transportation services.
- Shift to Pest Control: In 1964, Rollins acquired Orkin, the largest pest control company in the U.S., marking a major shift in business strategy.
- Growth Through Acquisitions: Over the decades, Rollins expanded its pest control services through acquisitions of other pest control companies across the U.S. and internationally.
- Diversification: Although originally diversified in industries like broadcasting and oil services, Rollins honed in on pest control as its primary business.
- International Expansion: In the 1990s and 2000s, Rollins extended its pest control operations to Canada, Europe, Central America, and beyond, becoming a global leader in the industry.
- Stock Market: Listed on the New York Stock Exchange under the ticker symbol ROL, Rollins has steadily increased its market value through consistent growth.
- Today: Rollins is a global leader in pest control services, known for brands like Orkin, Western Pest Services, and Critter Control, with a focus on innovation, customer satisfaction, and sustainability.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score:78
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Rollins makes money:
- Pest Control Services: Rollins makes most of its money by providing pest control services to residential and commercial customers through its well-known brands like Orkin, Western Pest Services, and Critter Control.
- Termite Protection: Rollins generates revenue from termite protection services, including inspections, treatments, and prevention plans, which are critical for property owners.
- Wildlife Management: Rollins earns money by offering wildlife control and removal services, helping customers manage unwanted animals in and around their properties.
- Recurring Service Contracts: Rollins benefits from recurring revenue through service contracts, providing regular pest control maintenance and inspections for customers over extended periods.
- Franchising: Rollins generates income by franchising its pest control brands, allowing others to operate under its established names in exchange for fees and royalties.
- International Operations: Rollins makes money by offering pest control services internationally, with operations in countries outside the U.S., expanding its customer base globally.
- Specialty Services: Rollins offers specialized services such as fumigation, moisture control, and lawn care, which add to its overall revenue stream.
- Orkin
- Western Pest Services
- Critter Control
- Pest Control Services
- Aptive Environmental
- Schendel Pest Services
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Rollins stacks up against other companies.
- Rollins, Inc.(ROL) – 78
- Bright Horizons Family Solutions Inc.(BFAM) – 67
- H&R Block, Inc.(HRB) – 56
- Carriage Services, Inc.(CSV) – 50
- Medifast, Inc.(MED) – 44
- Service Corporation International(SCI) – 39
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Leadership Growth: Jerry Gahlhoff advanced through various leadership roles, eventually becoming the President and COO, showcasing his deep understanding of the pest control industry.
- Operational Excellence: He played a key role in optimizing operations, improving efficiency, and reducing costs, which positively impacted the company’s profitability.
- Strategic Expansion: Gahlhoff was instrumental in Rollins’ strategic expansion, helping to grow the company both domestically and internationally through acquisitions and new market entries.
- Employee Development: He focused on talent development, implementing programs that enhanced employee skills and leadership capabilities, contributing to a strong organizational culture.
- Customer Service Improvement: Gahlhoff prioritized enhancing customer service, leading initiatives that improved customer satisfaction and retention rates.
- Sustainability Initiatives: He supported the integration of environmentally sustainable practices within Rollins’ operations, aligning with industry trends and customer expectations.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Rollins (ROL) is 83/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Rollins (ROL) stock a good buy?
Some of the top questions investors can have is Rollins (ROL) stock a good buy or should I buy Rollins (ROL) stock?
Rollins (ROL) is a leading player in the pest control industry, with well-known brands like Orkin under its umbrella. The company has a strong track record of consistent revenue growth and profitability, supported by its expansive service network and strong customer base. Rollins’ focus on operational excellence, strategic acquisitions, and employee development has further solidified its market leadership.
Investing in Rollins offers potential for stable returns, driven by the recurring nature of its pest control services. The company’s commitment to sustainability and innovation positions it well for future growth. Additionally, the pest control industry tends to be resilient during economic downturns, providing a defensive investment option.
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To truly know if Rollins is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.