REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
NYSE:RSG - New York Stock Exchange, Inc. - US7607591002 - Common Stock
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. RSG scores excellent on profitability, but there are 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.
In the past 5 years RSG has always been profitable.
In the past 5 years RSG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RSG (6.19%) is better than 71.95% of its industry peers.
The Return On Equity of RSG (17.55%) is better than 79.27% of its industry peers.
With a decent Return On Invested Capital value of 8.89%, RSG is doing good in the industry, outperforming 69.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RSG is below the industry average of 10.08%.
The 3 year average ROIC (7.86%) for RSG is below the current ROIC(8.89%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
With an excellent Profit Margin value of 12.46%, RSG belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
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 91.46% of its industry peers.
In the last couple of years the Operating Margin of RSG has grown nicely.
Looking at the Gross Margin, with a value of 41.22%, RSG is in the better half of the industry, outperforming 71.95% 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 | 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%
2. Health
2.1 Basic Checks
RSG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RSG has been reduced compared to 1 year ago.
Compared to 5 years ago, RSG has less shares outstanding
Compared to 1 year ago, RSG has a worse debt to assets ratio.
2.2 Solvency
RSG has an Altman-Z score of 3.15. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
RSG has a Altman-Z score of 3.15. This is in the better half of the industry: RSG outperforms 63.41% of its industry peers.
The Debt to FCF ratio of RSG is 6.59, which is on the high side as it means it would take RSG, 6.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RSG (6.59) is better than 62.20% of its industry peers.
RSG has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
RSG has a worse Debt to Equity ratio (1.07) than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.04
WACC8.57%
2.3 Liquidity
A Current Ratio of 0.64 indicates that RSG may have some problems paying its short term obligations.
RSG's Current ratio of 0.64 is on the low side compared to the rest of the industry. RSG is outperformed by 90.24% of its industry peers.
A Quick Ratio of 0.62 indicates that RSG may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, RSG is not doing good in the industry: 87.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
RSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.05%, which is quite good.
The Earnings Per Share has been growing by 12.63% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.88% in the past year.
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
Based on estimates for the next years, RSG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.77% on average per year.
Based on estimates for the next years, RSG will show a small growth in Revenue. The Revenue will grow by 6.53% on average per year.
EPS Next Y12.91%
EPS Next 2Y11%
EPS Next 3Y11.03%
EPS Next 5Y8.77%
Revenue Next Year8.04%
Revenue Next 2Y6.81%
Revenue Next 3Y6.35%
Revenue Next 5Y6.53%
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
RSG is valuated quite expensively with a Price/Earnings ratio of 34.23.
RSG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. RSG is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 31.15, which means the current valuation is very expensive for RSG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RSG is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, RSG is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 31.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RSG is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RSG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.29 | ||
| EV/EBITDA | 16.67 |
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.
The excellent profitability rating of RSG may justify a higher PE ratio.
PEG (NY)2.65
PEG (5Y)2.71
EPS Next 2Y11%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
RSG has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.09, RSG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.09, RSG pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of RSG is nicely growing with an annual growth rate of 7.49%!
RSG has paid a dividend for at least 10 years, which is 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
RSG pays out 34.17% of its income as dividend. This is a 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 2Y11%
EPS Next 3Y11.03%
REPUBLIC SERVICES INC
NYSE:RSG (1/21/2025, 8:24:46 PM)
After market: 214.94 0 (0%)214.94
+1.21 (+0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.96%
Inst Owner Change0.02%
Ins Owners0.1%
Ins Owner Change-0.01%
Market Cap67.31B
Analysts78.52
Price Target230.66 (7.31%)
Short Float %0.87%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend2.02
Dividend Growth(5Y)7.49%
DP34.17%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.72%
Min EPS beat(2)4.36%
Max EPS beat(2)11.07%
EPS beat(4)4
Avg EPS beat(4)7.45%
Min EPS beat(4)4.36%
Max EPS beat(4)11.07%
EPS beat(8)8
Avg EPS beat(8)7.67%
EPS beat(12)11
Avg EPS beat(12)7.36%
EPS beat(16)15
Avg EPS beat(16)8.43%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)-0.69%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)1.61%
Revenue beat(8)3
Avg Revenue beat(8)-0.05%
Revenue beat(12)7
Avg Revenue beat(12)0.55%
Revenue beat(16)9
Avg Revenue beat(16)0.58%
PT rev (1m)1.19%
PT rev (3m)4.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.75%
EPS NY rev (1m)0%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 31.15 | ||
| P/S | 4.26 | ||
| P/FCF | 35.29 | ||
| P/OCF | 17.65 | ||
| P/B | 5.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.67 |
EPS(TTM)6.28
EY2.92%
EPS(NY)6.9
Fwd EY3.21%
FCF(TTM)6.09
FCFY2.83%
OCF(TTM)12.17
OCFY5.66%
SpS50.51
BVpS35.86
TBVpS-16.32
PEG (NY)2.65
PEG (5Y)2.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 17.55% | ||
| ROCE | 11.09% | ||
| ROIC | 8.89% | ||
| ROICexc | 8.91% | ||
| ROICexgc | 21.31% | ||
| OM | 19.76% | ||
| PM (TTM) | 12.46% | ||
| GM | 41.22% | ||
| FCFM | 12.06% |
ROA(3y)5.27%
ROA(5y)4.93%
ROE(3y)15.38%
ROE(5y)14.15%
ROIC(3y)7.86%
ROIC(5y)7.6%
ROICexc(3y)7.9%
ROICexc(5y)7.63%
ROICexgc(3y)19.22%
ROICexgc(5y)18.59%
ROCE(3y)9.82%
ROCE(5y)9.49%
ROICexcg growth 3Y8.2%
ROICexcg growth 5Y2.35%
ROICexc growth 3Y6%
ROICexc growth 5Y2.73%
OM growth 3Y1.15%
OM growth 5Y1.98%
PM growth 3Y6.7%
PM growth 5Y2.29%
GM growth 3Y0.63%
GM growth 5Y1.34%
F-Score8
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.59 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 114.72% | ||
| Cap/Sales | 12.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.65% | ||
| Profit Quality | 96.78% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 3.15 |
F-Score8
WACC8.57%
ROIC/WACC1.04
Cap/Depr(3y)102.22%
Cap/Depr(5y)103.46%
Cap/Sales(3y)11.11%
Cap/Sales(5y)11.36%
Profit Quality(3y)115.14%
Profit Quality(5y)116.84%
High Growth Momentum
Growth
EPS 1Y (TTM)18.05%
EPS 3Y16.08%
EPS 5Y12.63%
EPS Q2Q%17.53%
EPS Next Y12.91%
EPS Next 2Y11%
EPS Next 3Y11.03%
EPS Next 5Y8.77%
Revenue 1Y (TTM)7.88%
Revenue growth 3Y13.8%
Revenue growth 5Y8.31%
Sales Q2Q%6.54%
Revenue Next Year8.04%
Revenue Next 2Y6.81%
Revenue Next 3Y6.35%
Revenue Next 5Y6.53%
EBIT growth 1Y14.67%
EBIT growth 3Y15.11%
EBIT growth 5Y10.45%
EBIT Next Year77.3%
EBIT Next 3Y26.45%
EBIT Next 5Y17.98%
FCF growth 1Y12.49%
FCF growth 3Y15.87%
FCF growth 5Y11.15%
OCF growth 1Y25.73%
OCF growth 3Y13.54%
OCF growth 5Y10.04%