The $25B Pest Control Monopoly Hiding in Plain Sight

インデックス作成: 2026-05-19

[00:00:00]There's a company that has grown into a $26 billion empire by solving one problem. Bugs, specifically getting rid of them. Termites, roaches, ants, rats, mosquitoes. They owned Orkin, the most recognizable name in pest control. They serve over 2.8 million customers. 80% of their revenue is recurring. And they paid a dividend every single quarter since 1991. Rollins, ticker RO, on the New York Stock Exchange, trading around $53 with a $25 billion market cap at the time of this recording. Rollins wasn't even a pest control company when it started. They were a radio broadcasting business founded in 1948 by two brothers in Georgia. In 1964, they made an acquisition that changed everything.

[00:00:43]They bought Orin for $62.4 4 billion, pivoted out of radio entirely, and spent the next 60 years rolling up pest control companies across America. Today, they own Orcin, Home Team Pest Defense, Western Pest Services, Waltham, True Tech for Wildlife Removal, and Critter Control. They control about 18% of the entire North American pest control market. Revenue last year was $3.76 billion, up 11%. Organic growth was 6.9%, which is huge for a company this size. Adjusted Ibida hit $854 million.

[00:01:17]Operating cash flow was $678 million.

[00:01:20]And they deployed $310 million in acquisitions last year across 44 separate deals. They just keep buying smaller regional operators. So the bull case bugs are not going away. Termite damage alone cost Americans over $5 billion a year. Recurring revenue makes this business recession proof. 34 consecutive years of dividend payments.

[00:01:41]And the industry is still fragmented, so there's plenty of runway to keep rolling up competitors. But the bare case, the PE is 48, which is very expensive. Q4 revenue missed estimates, margins compressed, and the stock is down 17% from its high. So in this case, you're paying a premium for a very steady