REPUBLIC SERVICES INC (RSG)

US7607591002 - Common Stock

208.04  -1.42 (-0.68%)

After market: 208.04 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to RSG. RSG was compared to 84 industry peers in the Commercial Services & Supplies industry. RSG has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, RSG is valued expensive at the moment.



8

1. Profitability

1.1 Basic Checks

In the past year RSG was profitable.
In the past year RSG had a positive cash flow from operations.
In the past 5 years RSG has always been profitable.
RSG had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

RSG has a better Return On Assets (6.19%) than 71.43% of its industry peers.
RSG has a better Return On Equity (17.55%) than 80.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.89%, RSG is in the better half of the industry, outperforming 72.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RSG is below the industry average of 9.92%.
The last Return On Invested Capital (8.89%) for RSG is above the 3 year average (7.86%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.19%
ROE 17.55%
ROIC 8.89%
ROA(3y)5.27%
ROA(5y)4.93%
ROE(3y)15.38%
ROE(5y)14.15%
ROIC(3y)7.86%
ROIC(5y)7.6%

1.3 Margins

RSG has a Profit Margin of 12.46%. This is amongst the best in the industry. RSG outperforms 88.10% of its industry peers.
In the last couple of years the Profit Margin of RSG has grown nicely.
RSG's Operating Margin of 19.76% is amongst the best of the industry. RSG outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of RSG has grown nicely.
RSG has a Gross Margin of 41.22%. This is in the better half of the industry: RSG outperforms 73.81% of its industry peers.
In the last couple of years the Gross Margin of RSG has remained more or less at the same level.
Industry RankSector Rank
OM 19.76%
PM (TTM) 12.46%
GM 41.22%
OM growth 3Y1.15%
OM growth 5Y1.98%
PM growth 3Y6.7%
PM growth 5Y2.29%
GM growth 3Y0.63%
GM growth 5Y1.34%

3

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.
Compared to 1 year ago, RSG has less shares outstanding
The number of shares outstanding for RSG has been reduced compared to 5 years ago.
Compared to 1 year ago, RSG has a worse debt to assets ratio.

2.2 Solvency

RSG has an Altman-Z score of 3.09. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.09, RSG is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
RSG has a debt to FCF ratio of 6.59. This is a slightly negative value and a sign of low solvency as RSG would need 6.59 years to pay back of all of its debts.
RSG has a Debt to FCF ratio of 6.59. This is in the better half of the industry: RSG outperforms 61.90% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that RSG has dependencies on debt financing.
The Debt to Equity ratio of RSG (1.07) is worse than 65.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 6.59
Altman-Z 3.09
ROIC/WACC1.1
WACC8.07%

2.3 Liquidity

RSG has a Current Ratio of 0.64. This is a bad value and indicates that RSG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.64, RSG is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
RSG has a Quick Ratio of 0.64. 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's Quick ratio of 0.62 is on the low side compared to the rest of the industry. RSG is outperformed by 88.10% of its industry peers.
Industry RankSector Rank
Current Ratio 0.64
Quick Ratio 0.62

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 18.05% over the past year.
RSG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.63% yearly.
RSG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.88%.
RSG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.31% yearly.
EPS 1Y (TTM)18.05%
EPS 3Y16.08%
EPS 5Y12.63%
EPS Q2Q%17.53%
Revenue 1Y (TTM)7.88%
Revenue growth 3Y13.8%
Revenue growth 5Y8.31%
Sales Q2Q%6.54%

3.2 Future

RSG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.19% yearly.
Based on estimates for the next years, RSG will show a small growth in Revenue. The Revenue will grow by 6.60% on average per year.
EPS Next Y12.46%
EPS Next 2Y10.8%
EPS Next 3Y10.83%
EPS Next 5Y8.19%
Revenue Next Year8.04%
Revenue Next 2Y6.83%
Revenue Next 3Y6.36%
Revenue Next 5Y6.6%

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.

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 33.13, RSG can be considered very expensive at the moment.
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 (28.53), we can say RSG is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 30.26, the valuation of RSG can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RSG.
The average S&P500 Price/Forward Earnings ratio is at 23.40. RSG is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 33.13
Fwd PE 30.26

4.2 Price Multiples

RSG's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RSG.
Industry RankSector Rank
P/FCF 34.16
EV/EBITDA 16.22

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)2.66
PEG (5Y)2.62
EPS Next 2Y10.8%
EPS Next 3Y10.83%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.11%, RSG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.10, RSG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.22, RSG's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.11%

5.2 History

On average, the dividend of RSG grows each year by 7.49%, which is quite nice.
RSG has been paying a dividend for at least 10 years, so it has a reliable track record.
RSG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.49%
Div Incr Years20
Div Non Decr Years20

5.3 Sustainability

34.17% 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.
DP34.17%
EPS Next 2Y10.8%
EPS Next 3Y10.83%

REPUBLIC SERVICES INC

NYSE:RSG (11/15/2024, 8:04:00 PM)

After market: 208.04 0 (0%)

208.04

-1.42 (-0.68%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap65.15B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.11%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 33.13
Fwd PE 30.26
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.66
PEG (5Y)2.62
Profitability
Industry RankSector Rank
ROA 6.19%
ROE 17.55%
ROCE
ROIC
ROICexc
ROICexgc
OM 19.76%
PM (TTM) 12.46%
GM 41.22%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.64
Quick Ratio 0.62
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.05%
EPS 3Y16.08%
EPS 5Y
EPS Q2Q%
EPS Next Y12.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.88%
Revenue growth 3Y13.8%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y