ROLNEUTRAL

ROL Gross Margin Analysis

52.8%

Higher than 76% of Consumer Cyclical sector peers

Updated 366h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue left after paying direct production costs, and Rollins’s current 52.8% means it retains over half of each sales dollar after those costs.

Sector Performance

76th percentile

ROL

52.8%

Sector Median

34.5%

Sector Avg

27.6%

Prior Period

50.8%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue left after paying direct production costs, and Rollins’s current 52.8% means it retains over half of each sales dollar after those costs.

That level sits well above the sector median of 33.9%, placing the company in the 77th percentile among Consumer Cyclical peers. Trend data are not available: both the year-over-year change and quarter-over-quarter change are listed as N/A, and no historical values beyond 52.8% were provided. The combination of a high margin with no trend evidence suggests a possible cost or pricing advantage, but the absence of direction makes it impossible to judge whether that advantage is stable or eroding. Given that uncertainty, this metric supports the overall NEUTRAL verdict rather than pushing toward a more positive or negative stance. A strong margin alone does not justify a call beyond neutral when its trajectory is unknown.

Frequently Asked Questions

What does the Gross Margin tell investors about ROL?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ROL's Gross Margin compare to its sector?

ROL's Gross Margin of 52.8% compares to a Consumer Cyclical sector median of 34.5%, placing it in the 76th percentile.

Who are ROL's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: W (30.0%), JACK (29.9%), ROST (29.6%), RH (41.4%), CAVA (25.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.