REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
NYSE:RSG - New York Stock Exchange, Inc. - US7607591002 - Common Stock - Currency: USD
Taking everything into account, RSG scores 5 out of 10 in our fundamental rating. RSG was compared to 83 industry peers in the Commercial Services & Supplies industry. While RSG has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, RSG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year RSG was profitable.
RSG had a positive operating cash flow in the past year.
RSG had positive earnings in each of the past 5 years.
In the past 5 years RSG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RSG (6.30%) is better than 72.29% of its industry peers.
RSG has a Return On Equity of 17.87%. This is amongst the best in the industry. RSG outperforms 80.72% of its industry peers.
The Return On Invested Capital of RSG (9.06%) is better than 68.67% of its industry peers.
RSG had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 11.67%.
The last Return On Invested Capital (9.06%) for RSG is above the 3 year average (8.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 17.87% | ||
| ROIC | 9.06% |
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's Profit Margin of 12.88% is amongst the best of the industry. RSG outperforms 84.34% of its industry peers.
RSG's Profit Margin has improved in the last couple of years.
RSG has a better Operating Margin (20.34%) than 91.57% of its industry peers.
In the last couple of years the Operating Margin of RSG has grown nicely.
RSG has a Gross Margin of 42.02%. This is in the better half of the industry: RSG outperforms 71.08% of its industry peers.
RSG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.34% | ||
| PM (TTM) | 12.88% | ||
| GM | 42.02% |
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
RSG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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 3.36 indicates that RSG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.36, RSG is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
The Debt to FCF ratio of RSG is 5.65, which is a neutral value as it means it would take RSG, 5.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.65, RSG is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
A Debt/Equity ratio of 1.10 is on the high side and indicates that RSG has dependencies on debt financing.
RSG has a worse Debt to Equity ratio (1.10) than 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 5.65 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.93
WACC9.79%
2.3 Liquidity
A Current Ratio of 0.66 indicates that RSG may have some problems paying its short term obligations.
RSG has a Current ratio of 0.66. This is amonst the worse of the industry: RSG underperforms 89.16% of its industry peers.
RSG has a Quick 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.
RSG has a worse Quick ratio (0.64) than 89.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
RSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.25%, 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.
The Revenue has been growing slightly by 6.13% in the past 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)13.25%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%8.97%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.81%
3.2 Future
The Earnings Per Share is expected to grow by 9.00% on average over the next years. This is quite good.
Based on estimates for the next years, RSG will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y7.85%
EPS Next 2Y9.42%
EPS Next 3Y10.08%
EPS Next 5Y9%
Revenue Next Year5.05%
Revenue Next 2Y5.19%
Revenue Next 3Y5.46%
Revenue Next 5Y5.62%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RSG is valuated quite expensively with a Price/Earnings ratio of 37.18.
The rest of the industry has a similar Price/Earnings ratio as RSG.
RSG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
RSG is valuated quite expensively with a Price/Forward Earnings ratio of 31.68.
RSG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, RSG is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.18 | ||
| Fwd PE | 31.68 |
4.2 Price Multiples
RSG's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RSG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.54 | ||
| EV/EBITDA | 17.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RSG does not grow enough to justify the current Price/Earnings ratio.
RSG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.74
PEG (5Y)2.64
EPS Next 2Y9.42%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, RSG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.45, RSG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, RSG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of RSG grows each year by 7.46%, which is quite nice.
RSG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of RSG decreased recently.
Dividend Growth(5Y)7.46%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RSG pays out 33.57% of its income as dividend. This is a sustainable payout ratio.
RSG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.57%
EPS Next 2Y9.42%
EPS Next 3Y10.08%
244.67
-1.94 (-0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners61.64%
Inst Owner Change1.49%
Ins Owners0.11%
Ins Owner Change0.05%
Market Cap76.46B
Analysts78.52
Price Target266.4 (8.88%)
Short Float %0.78%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend2.19
Dividend Growth(5Y)7.46%
DP33.57%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.15%
Min EPS beat(2)2.26%
Max EPS beat(2)12.05%
EPS beat(4)4
Avg EPS beat(4)7.43%
Min EPS beat(4)2.26%
Max EPS beat(4)12.05%
EPS beat(8)8
Avg EPS beat(8)7.12%
EPS beat(12)12
Avg EPS beat(12)7.91%
EPS beat(16)15
Avg EPS beat(16)7.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)-0.69%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)9
Avg Revenue beat(16)0.51%
PT rev (1m)1.11%
PT rev (3m)6.4%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)0.58%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.18 | ||
| Fwd PE | 31.68 | ||
| P/S | 4.73 | ||
| P/FCF | 32.54 | ||
| P/OCF | 18.43 | ||
| P/B | 6.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.57 |
EPS(TTM)6.58
EY2.69%
EPS(NY)7.72
Fwd EY3.16%
FCF(TTM)7.52
FCFY3.07%
OCF(TTM)13.28
OCFY5.43%
SpS51.77
BVpS37.32
TBVpS-17.77
PEG (NY)4.74
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 17.87% | ||
| ROCE | 11.11% | ||
| ROIC | 9.06% | ||
| ROICexc | 9.09% | ||
| ROICexgc | 21.79% | ||
| OM | 20.34% | ||
| PM (TTM) | 12.88% | ||
| GM | 42.02% | ||
| FCFM | 14.52% |
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%
ROICexcg growth 3Y7.54%
ROICexcg 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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 5.65 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 97.44% | ||
| Cap/Sales | 11.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.76% | ||
| Profit Quality | 112.75% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 3.36 |
F-Score7
WACC9.79%
ROIC/WACC0.93
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)13.25%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%8.97%
EPS Next Y7.85%
EPS Next 2Y9.42%
EPS Next 3Y10.08%
EPS Next 5Y9%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.81%
Revenue Next Year5.05%
Revenue Next 2Y5.19%
Revenue Next 3Y5.46%
Revenue Next 5Y5.62%
EBIT growth 1Y12.53%
EBIT growth 3Y15.48%
EBIT growth 5Y12.34%
EBIT Next Year67.83%
EBIT Next 3Y24.35%
EBIT Next 5Y16.17%
FCF growth 1Y40.42%
FCF growth 3Y12.27%
FCF growth 5Y12.69%
OCF growth 1Y30.81%
OCF growth 3Y12.2%
OCF growth 5Y10.85%