Bottom Line:
âšī¸ NEUTRAL: ROL is fairly priced but lacks strong directional signals. At -11.1% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$47.29
Based on 7.8% avg growth
INTRINSIC VALUE TODAY
$29.36
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
Valuation Analysis: ROL is currently trading at $36.91, which is considered slightly low relative to its 30-day fair value range of $36.10 to $42.57. From a valuation perspective, the stock is trading at a discount (Forward PE: 27.9) compared to its historical average (39.7). Remarkably, the market is currently pricing in an annual earnings decline of 11.1% over the next few years. This pessimistic expectation contrasts with the company's recent 3.1% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, ROL is in a strong downtrend. The price is currently testing key support at $35.83. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: ROL scores 68/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $45.59 (+25.3%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$36.10 -
$42.57
Company Quality Score
48/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
90.5%
Protect Your Profits
Holding ROL? Use our AI-powered strategies to protect your downside while keeping your long-term position.
Rollins is a global leader in route-based pest control services, with operations primarily in the United States, as well as in North, Central, and South America, Europe, the Middle East, Africa, and Australia. Its portfolio of pest-control brands includes the prominent Orkin brand, a market leader in the US, which boasts near national coverage, and in Canada. Residential pest and termite prevention dominates the services provided by Rollins, owing to the group's ongoing focus on the US and Canadian markets.