I took the plunge today after my paycheck came in and $RMS (-5,97%) bought some more on a contrarian basis.

For me, it’s a tad better than LVMH.

And I entered a mini test position in $ROL (+14,24%) . It’s really just a test position, since I definitely see even worse chart patterns here than with $RMS (-5,97%)

Have a nice weekend 😽

The Pest Control Giant Rollins $ROL (+14,24%)
(NYSE: ROL) announced its results for the second quarter of 2026 .

Unlike Alphabet $GOOGL (-3,06%) or ServiceNow $NOW (+1,38%) , the reaction here has been rather subdued, as the company narrowly missed Wall Street’s expectations on key metrics.

📊 Key Figures at a Glance (Q2 2026)

Revenue:
$1.08 billion
(+7.9% YoY; organic growth: +5.7%)

Expectation: ~$1.09 billion 🔴

Adjusted earnings per share (Adjusted EPS):
$0.32
(GAAP EPS: $0.30)

Expected: $0.34 🔴

Adjusted EBITDA:
$236.3 million

Expected: ~$256.1 million 🔴

🔍 Why were expectations missed?

1. Weakness in the residential retail business (Residential):

Growth in the residential segment slowed noticeably. Consumer spending showed signs of fatigue over the course of the quarter.

2. Cost Structure & Margin Pressure:

Rollins had structured its costs and workforce to support higher growth. As demand cooled somewhat, operating margins and EBITDA came under pressure.

3. Focus on High Valuation:

With a P/E ratio of just under 40x, the stock is trading at a premium. At such multiples, the market is unlikely to forgive any operational setbacks.

⚡ Jack’s Conclusion

No collapse, but a spanner in the works: Thanks to its defensive business model with recurring revenue, Rollins remains profitable, but is currently suffering from consumer reluctance among retail customers. Investors keeping an eye on the stock should watch for margins to stabilize.

$ROL (+14,24%)

Rollins has now reached -20% ytd. Surprisingly, the CFO has left the company. You don't find such a drop here very often. I have put them high up on my watchlist at the moment. How do you see the whole thing?

When you think of exciting business models, pest control doesn't immediately spring to mind...

But this is exactly where the strength of $ROL (+14,24%) Rollins: An extremely stable, boring business with a permanent demand 😄

👉 Whether it's a recession, boom or crisis - there are always pests.

📊 The most important figures at a glance

• 💰 Market capitalization: ~€23 billion
• 📈 Profit growth: ~10-13% p.a. expected
• 💵 EPS 2025: ~1.09 USD
• 📊 P/E ratio: ~45-55 (expensive!)
• 🛡️ Beta: ~0.38 → very defensive

👉 Translated: steady growth + low fluctuation = classic compounder

💸 Dividend - small, but with power

• Current yield: ~1.2 %
• Payout ratio: ~62 %
• 📅 25 years without reduction
• 📈 23 years of increases
• 🚀 Growth:
• ~23 % p.a. (5 years)
• ~17 % p.a. (10 years)

👉 This is not a high-yield stock, but a dividend growth monster.

💡 Stocks like this are often stronger in the long term than "high yield today".

🚀 Why Rollins can be a long-term runner

1. 🧱 Extremely stable business model

• Pest control is not a cyclical luxury good
• Customers are often tied in for the long term (subscription-like)

👉 High predictability + recurring revenue

2. 📈 Constant growth (organic + acquisitions)

• Organic growth ~7-8 % p.a. (guidance)
• Additional M&A (small providers are acquired)

👉 Classic "buy & build" model

3. 💰 Strong margins & cash flow

• Gross margin over 50% according to earnings data
• Double-digit growth in cash flow

👉 Plenty of money for:

• Dividends 💸
• Takeovers 📦
• Growth 📊

4. 🛡️ Defensive character

• Low volatility (beta 0.38)
• Often holds up better in crises

👉 Perfect for a portfolio as a stabilizer

⚠️ But: not everything is perfect

❗ Valuation is high

• P/E ratio ~50 → a lot of future priced in
• 👉 Not a bargain!

❗ Low dividend yield

• Only ~1-1.3 % currently
• 👉 Focus is on growth, not income

❗ Growth "only" solid

• No tech hypergrowth
• 👉 Rather "slow but sure"

🧠 Conclusion

Rollins is a typical "boring winner stock":

✅ Stable market (always demand)

✅ Predictable earnings

✅ Strong dividend growth

✅ Defensive characteristics

❌ Valued expensively for this

❌ No high initial yield

🏁 My impression

👉 Rollins is not an overnight tenbagger

👉 But a classic compounder for 10-20 years

💡 Perfect for:

• Buy & Hold investors
• Dividend growth fans
• Quiet portfolios with little stress