REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
USA - NYSE:RSG - US7607591002 - Common Stock
208.24 USD
-1.68 (-0.8%)
208.24 USD
0 (0%)
RSG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. While RSG has a great profitability rating, there are some minor concerns on its financial health. RSG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RSG had positive earnings in the past year.
RSG had a positive operating cash flow in the past year.
Each year in the past 5 years RSG has been profitable.
RSG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RSG has a Return On Assets of 6.36%. This is in the better half of the industry: RSG outperforms 76.83% of its industry peers.
The Return On Equity of RSG (17.62%) is better than 84.15% of its industry peers.
RSG has a better Return On Invested Capital (9.16%) than 75.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RSG is in line with the industry average of 10.38%.
The 3 year average ROIC (8.58%) for RSG is below the current ROIC(9.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 17.62% | ||
| ROIC | 9.16% |
ROA(3y)5.65%
ROA(5y)5.25%
ROE(3y)16.56%
ROE(5y)15.09%
ROIC(3y)8.58%
ROIC(5y)8.1%
1.3 Margins
RSG has a Profit Margin of 12.97%. This is amongst the best in the industry. RSG outperforms 89.02% of its industry peers.
RSG's Profit Margin has improved in the last couple of years.
The Operating Margin of RSG (20.43%) is better than 95.12% of its industry peers.
In the last couple of years the Operating Margin of RSG has grown nicely.
With a decent Gross Margin value of 42.28%, RSG is doing good in the industry, outperforming 75.61% of the companies in the same industry.
In the last couple of years the Gross Margin of RSG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.43% | ||
| PM (TTM) | 12.97% | ||
| GM | 42.28% |
OM growth 3Y2.76%
OM growth 5Y2.82%
PM growth 3Y3.71%
PM growth 5Y4.11%
GM growth 3Y1.32%
GM growth 5Y1.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RSG is creating some value.
The number of shares outstanding for RSG has been reduced compared to 1 year ago.
The number of shares outstanding for RSG has been reduced compared to 5 years ago.
RSG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.06 indicates that RSG is not in any danger for bankruptcy at the moment.
RSG has a Altman-Z score of 3.06. This is in the better half of the industry: RSG outperforms 62.20% of its industry peers.
The Debt to FCF ratio of RSG is 5.50, which is a neutral value as it means it would take RSG, 5.50 years of fcf income to pay off all of its debts.
RSG has a better Debt to FCF ratio (5.50) than 67.07% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that RSG has dependencies on debt financing.
RSG has a worse Debt to Equity ratio (1.04) than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.06 |
ROIC/WACC1.17
WACC7.82%
2.3 Liquidity
RSG has a Current Ratio of 0.66. This is a bad value and indicates that RSG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RSG (0.66) is worse than 89.02% of its industry peers.
A Quick Ratio of 0.63 indicates that RSG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.63, RSG is doing worse than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
RSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.76%, which is quite good.
RSG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.07% yearly.
Looking at the last year, RSG shows a small growth in Revenue. The Revenue has grown by 7.13% in the last year.
RSG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.25% yearly.
EPS 1Y (TTM)8.76%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%4.97%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.33%
3.2 Future
The Earnings Per Share is expected to grow by 8.52% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.56% on average over the next years.
EPS Next Y7.27%
EPS Next 2Y7.83%
EPS Next 3Y9%
EPS Next 5Y8.52%
Revenue Next Year3.99%
Revenue Next 2Y4.4%
Revenue Next 3Y4.69%
Revenue Next 5Y5.56%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.49, the valuation of RSG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RSG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RSG to the average of the S&P500 Index (26.10), we can say RSG is valued inline with the index average.
With a Price/Forward Earnings ratio of 27.77, RSG can be considered very expensive at the moment.
RSG's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RSG to the average of the S&P500 Index (22.52), we can say RSG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.49 | ||
| Fwd PE | 27.77 |
4.2 Price Multiples
RSG's Enterprise Value to EBITDA ratio is in line with the industry average.
63.41% of the companies in the same industry are more expensive than RSG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.6 | ||
| EV/EBITDA | 15.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RSG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.19
PEG (5Y)2.17
EPS Next 2Y7.83%
EPS Next 3Y9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, RSG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.51, RSG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, RSG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
On average, the dividend of RSG grows each year by 7.46%, which is quite nice.
RSG has been paying a dividend for at least 10 years, so it has a reliable track record.
RSG has decreased its dividend recently.
Dividend Growth(5Y)7.46%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
33.55% of the earnings are spent on dividend by RSG. This is a low number and sustainable payout ratio.
RSG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP33.55%
EPS Next 2Y7.83%
EPS Next 3Y9%
208.24
-1.68 (-0.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners59.95%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner Change0%
Market Cap65.02B
Revenue(TTM)16.03B
Net Income(TTM)2.12B
Analysts77.78
Price Target259.47 (24.6%)
Short Float %1.24%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend2.19
Dividend Growth(5Y)7.46%
DP33.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.12%
Min EPS beat(2)-0.02%
Max EPS beat(2)2.26%
EPS beat(4)3
Avg EPS beat(4)6.34%
Min EPS beat(4)-0.02%
Max EPS beat(4)12.05%
EPS beat(8)7
Avg EPS beat(8)6.4%
EPS beat(12)11
Avg EPS beat(12)7.03%
EPS beat(16)14
Avg EPS beat(16)6.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)-1.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.08%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)8
Avg Revenue beat(16)0.25%
PT rev (1m)-0.67%
PT rev (3m)0.18%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-2.37%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.49 | ||
| Fwd PE | 27.77 | ||
| P/S | 3.97 | ||
| P/FCF | 27.6 | ||
| P/OCF | 15.63 | ||
| P/B | 5.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.04 |
EPS(TTM)6.83
EY3.28%
EPS(NY)7.5
Fwd EY3.6%
FCF(TTM)7.55
FCFY3.62%
OCF(TTM)13.32
OCFY6.4%
SpS52.42
BVpS38.59
TBVpS-16.62
PEG (NY)4.19
PEG (5Y)2.17
Graham Number77.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 17.62% | ||
| ROCE | 11.24% | ||
| ROIC | 9.16% | ||
| ROICexc | 9.2% | ||
| ROICexgc | 22% | ||
| OM | 20.43% | ||
| PM (TTM) | 12.97% | ||
| GM | 42.28% | ||
| FCFM | 14.4% |
ROA(3y)5.65%
ROA(5y)5.25%
ROE(3y)16.56%
ROE(5y)15.09%
ROIC(3y)8.58%
ROIC(5y)8.1%
ROICexc(3y)8.62%
ROICexc(5y)8.13%
ROICexgc(3y)21.03%
ROICexgc(5y)19.66%
ROCE(3y)10.52%
ROCE(5y)9.93%
ROICexgc growth 3Y7.54%
ROICexgc growth 5Y3.65%
ROICexc growth 3Y7.13%
ROICexc growth 5Y4.43%
OM growth 3Y2.76%
OM growth 5Y2.82%
PM growth 3Y3.71%
PM growth 5Y4.11%
GM growth 3Y1.32%
GM growth 5Y1.48%
F-Score8
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 96.48% | ||
| Cap/Sales | 11.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.8% | ||
| Profit Quality | 110.99% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 3.06 |
F-Score8
WACC7.82%
ROIC/WACC1.17
Cap/Depr(3y)102.29%
Cap/Depr(5y)102.75%
Cap/Sales(3y)11.08%
Cap/Sales(5y)11.33%
Profit Quality(3y)111.11%
Profit Quality(5y)115.87%
High Growth Momentum
Growth
EPS 1Y (TTM)8.76%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%4.97%
EPS Next Y7.27%
EPS Next 2Y7.83%
EPS Next 3Y9%
EPS Next 5Y8.52%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.33%
Revenue Next Year3.99%
Revenue Next 2Y4.4%
Revenue Next 3Y4.69%
Revenue Next 5Y5.56%
EBIT growth 1Y11.08%
EBIT growth 3Y15.48%
EBIT growth 5Y12.34%
EBIT Next Year66.96%
EBIT Next 3Y24.08%
EBIT Next 5Y16.53%
FCF growth 1Y25.87%
FCF growth 3Y12.27%
FCF growth 5Y12.69%
OCF growth 1Y22.59%
OCF growth 3Y12.2%
OCF growth 5Y10.85%
REPUBLIC SERVICES INC / RSG FAQ
What is the fundamental rating for RSG stock?
ChartMill assigns a fundamental rating of 5 / 10 to RSG.
What is the valuation status for RSG stock?
ChartMill assigns a valuation rating of 3 / 10 to REPUBLIC SERVICES INC (RSG). This can be considered as Overvalued.
What is the profitability of RSG stock?
REPUBLIC SERVICES INC (RSG) has a profitability rating of 8 / 10.
How financially healthy is REPUBLIC SERVICES INC?
The financial health rating of REPUBLIC SERVICES INC (RSG) is 4 / 10.
Is the dividend of REPUBLIC SERVICES INC sustainable?
The dividend rating of REPUBLIC SERVICES INC (RSG) is 5 / 10 and the dividend payout ratio is 33.55%.