Rollins is a high-quality company with a reliable business model; the recent derating to a ~30 PE makes it an attractive ownership candidate.

Rollins, which is a pest control business, is also on a big downturn.

Then we have Rollins, a massive pest control company that was at a big premium because of how well it was doing. I wouldn't call this one a normal turnaround play because Rollins really isn't in desperation.

The company's not doing that poorly. In fact, the company's actually operating quite well.

But the stock price got way ahead of itself. It was trading again at $65 per share. Now it's trading at about half of that. For years Rollins Corporation traded at a premium, around a 57 trailing PE ratio.

Now it trades at a 33. The free cash flow yield used to trade around a 2% free cash flow yield. Now it's traded all the way up to a 3.5.

So why is Rollins trading for much cheaper than its historical average? Well, the big reason why is they missed their earnings. The company simply didn't live up to its expectations over the past couple of quarters.

The numbers came in softer than expected and the stock got massively derated.

Now that doesn't mean that it's dirt cheap today. Rollins still trades at a healthy valuation, but it's much more reasonable. No longer is it in the 50s or 60s PE ratio, now it's down to a 30.

So this is a company that after years of waiting is finally down to a valuation that makes sense given the business prospects. Rollins is after all a fantastic company.

As it turns out, pest control is a very reliable and predictable business. People don't want bugs in or around their home and they're willing to dish out money every single year, year after year.

In fact, a lot of people don't really consider this money discretionary. They consider it a must-have for living in a home, and for many people that own real estate or own properties, they rent out places, they also need to have pest control for their tenants.

I like the company a lot. I think Rollins is actually one of the better non-AI companies to own. And now it's finally at a valuation worth looking at.