Recent events have not been easy for the world, and the economy has been hit just as hard. That being said, the pest control industry has been growing nicely to the relief of companies like Exterminators Now, among others. After all, bugs and pests are highly independent from other matters, meaning that, as long as their activity is on the rise, the industry’s going to grow to match.
One particular company experienced the most of the consistency of the industry, according to the S&P 500’s Industrial Index through early 2020’s reporting season; Rollins Inc., which operates under the Orkin brand, and others, and is currently valued at US$13bn. The company went up by 16% as of late February, putting it above General Electric Co.’s gain. Even junked car auction company Copart Inc., which was 2019’s hottest industry stock, wasn’t able to keep up with Rollins’s growth. Notably Rollins’s performance is a recovery from the company’s 8.1% drop in 2019, which is attributed to unusual margins and earnings growth weakness.
The notable thing is that pest-control companies aren’t actually directly part of the efforts with fighting the coronavirus, but public-health crises like it results in general hygiene awareness and any spending related to it which is good for companies like Exterminators Now, explained by Bloomberg Intelligence Analyst Eshan Toorabally. Notably, Rollins’s rivals, ServiceMaster Global Holdings Inc. and Rentokil Initial PLC, have been growing aggressively.
As for Rollins itself, it saw a 5.7% growth in organic revenue for the last three months of 2019, helping compensate from its drop for that year. Part of this is attributed to the 30% increase in mosquito-related sales thanks to the world’s concern about Zika, and other mosquito-borne diseases.
Rollins’s stumble in 2019 is considered by CEO Gary Rollins as the most disappointing year for the company in more than 2 decades, calling it an ‘anomaly’. Notably, 2019 was a bit of a weak period for big margin improvement programs. Data suggests that the next big boost for companies will be from investing in new technologies, particularly technologies aimed at aiding drivers get to their pest control destinations more effectively and reliably.