Summary
Pest control is a growing industry virtually invulnerable to macroeconomic trends.
With a 20 percent domestic market share, Rollins is the largest pest control company in the U.S.
Company has achieved two decades of uninterrupted growth and huge returns on capital.
Stock is not cheap, but price looks fair based on bright future prospects.
Most of us are pretty squeamish when it comes to household vermin. Nothing makes my mom scream louder than the sight of a rodent, and nothing can destroy an eaterys reputation faster than reports of cockroaches. Pests are not only disgusting, but quite dangerous to food and hospitality establishments in the age of online reviews and social media. They can also be physically destructive, with termites causing an estimated $30 billion in structural damage annually just in the United States.
But for those who do not shy away from handling rodents and bugs, there is a lot of money to be made. It makes no difference to vermin what the economy is doing, so pest control is one of the ultimate recession-proof businesses. Because of increased urban development, bans on certain mass pesticides, and greater awareness of public health, it turns out that bugs and rodents are also a growing market. That is great news for companies like Rollins (NYSE:ROL), the parent company of Orkin and a number of other well-known subsidiaries.
https://seekingalpha.com/article/4076368-rollins-ultimate-recession-proof-company
