REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RSG - US7607591002 - Common Stock
211.93 USD
-2.76 (-1.29%)
211.93 USD
0 (0%)
RSG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 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.
In the past year RSG had a positive cash flow from operations.
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 better Return On Assets (6.24%) than 79.01% of its industry peers.
Looking at the Return On Equity, with a value of 17.75%, RSG belongs to the top of the industry, outperforming 82.72% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.19%, RSG is doing good in the industry, outperforming 72.84% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RSG is in line with the industry average of 10.33%.
The last Return On Invested Capital (9.19%) for RSG is above the 3 year average (8.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 17.75% | ||
| ROIC | 9.19% |
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
Looking at the Profit Margin, with a value of 12.77%, RSG belongs to the top of the industry, outperforming 92.59% 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 20.16% is amongst the best of the industry. RSG outperforms 95.06% of its industry peers.
RSG's Operating Margin has improved in the last couple of years.
RSG's Gross Margin of 42.17% is fine compared to the rest of the industry. RSG outperforms 76.54% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.16% | ||
| PM (TTM) | 12.77% | ||
| GM | 42.17% |
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 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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.02 indicates that RSG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.02, RSG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
RSG has a debt to FCF ratio of 5.25. This is a neutral value as RSG would need 5.25 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.25, RSG is doing good in the industry, outperforming 69.14% of the companies in the same industry.
A Debt/Equity ratio of 1.04 is on the high side and indicates that RSG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.04, RSG is doing worse than 67.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 3.02 |
ROIC/WACC1.17
WACC7.86%
2.3 Liquidity
RSG has a Current Ratio of 0.58. This is a bad value and indicates that RSG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.58, RSG is doing worse than 87.65% of the companies in the same industry.
RSG has a Quick Ratio of 0.58. 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 0.56 is on the low side compared to the rest of the industry. RSG is outperformed by 83.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.56 |
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.
Measured over the past years, RSG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.07% on average per year.
Looking at the last year, RSG shows a small growth in Revenue. The Revenue has grown by 4.33% in the last year.
Measured over the past years, RSG shows a quite strong growth in Revenue. The Revenue has been growing by 9.25% on average per year.
EPS 1Y (TTM)8.76%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%4.97%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.33%
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 8.37% yearly.
The Revenue is expected to grow by 5.23% on average over the next years.
EPS Next Y8.11%
EPS Next 2Y7.1%
EPS Next 3Y8.36%
EPS Next 5Y8.37%
Revenue Next Year3.78%
Revenue Next 2Y3.89%
Revenue Next 3Y4.27%
Revenue Next 5Y5.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 31.03.
Compared to the rest of the industry, the Price/Earnings ratio of RSG is on the same level as its industry peers.
RSG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.65, 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.
RSG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 28.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RSG.
RSG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RSG is cheaper than 64.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.94 | ||
| EV/EBITDA | 15.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RSG may justify a higher PE ratio.
PEG (NY)3.83
PEG (5Y)2.21
EPS Next 2Y7.1%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
RSG has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
RSG's Dividend Yield is a higher than the industry average which is at 0.89.
With a Dividend Yield of 1.17, RSG pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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 34.47% of its income as dividend. This is a sustainable payout ratio.
The dividend of RSG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP34.47%
EPS Next 2Y7.1%
EPS Next 3Y8.36%
211.93
-2.76 (-1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners60.78%
Inst Owner Change3.27%
Ins Owners0.1%
Ins Owner Change0%
Market Cap65.61B
Revenue(TTM)16.50B
Net Income(TTM)2.11B
Analysts77.5
Price Target250.7 (18.29%)
Short Float %0.96%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend2.19
Dividend Growth(5Y)7.46%
DP34.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.79%
Min EPS beat(2)-0.02%
Max EPS beat(2)5.6%
EPS beat(4)3
Avg EPS beat(4)4.97%
Min EPS beat(4)-0.02%
Max EPS beat(4)12.05%
EPS beat(8)7
Avg EPS beat(8)6.21%
EPS beat(12)11
Avg EPS beat(12)6.77%
EPS beat(16)14
Avg EPS beat(16)6.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-1.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-1.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.24%
Revenue beat(12)3
Avg Revenue beat(12)-0.62%
Revenue beat(16)7
Avg Revenue beat(16)-0.02%
PT rev (1m)-0.57%
PT rev (3m)-6.8%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-5.46%
EPS NY rev (1m)0.48%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 28.65 | ||
| P/S | 3.98 | ||
| P/FCF | 25.94 | ||
| P/OCF | 15.13 | ||
| P/B | 5.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.22 |
EPS(TTM)6.83
EY3.22%
EPS(NY)7.4
Fwd EY3.49%
FCF(TTM)8.17
FCFY3.86%
OCF(TTM)14.01
OCFY6.61%
SpS53.31
BVpS38.35
TBVpS-17.53
PEG (NY)3.83
PEG (5Y)2.21
Graham Number76.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 17.75% | ||
| ROCE | 11.27% | ||
| ROIC | 9.19% | ||
| ROICexc | 9.21% | ||
| ROICexgc | 22.34% | ||
| OM | 20.16% | ||
| PM (TTM) | 12.77% | ||
| GM | 42.17% | ||
| FCFM | 15.33% |
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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.25 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 94.8% | ||
| Cap/Sales | 10.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.86% | ||
| Profit Quality | 120.05% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 3.02 |
F-Score7
WACC7.86%
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 Y8.11%
EPS Next 2Y7.1%
EPS Next 3Y8.36%
EPS Next 5Y8.37%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.33%
Revenue Next Year3.78%
Revenue Next 2Y3.89%
Revenue Next 3Y4.27%
Revenue Next 5Y5.23%
EBIT growth 1Y6.47%
EBIT growth 3Y15.48%
EBIT growth 5Y12.34%
EBIT Next Year67.08%
EBIT Next 3Y23.05%
EBIT Next 5Y16.15%
FCF growth 1Y32.19%
FCF growth 3Y12.27%
FCF growth 5Y12.69%
OCF growth 1Y23%
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 of REPUBLIC SERVICES INC (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.
Can you provide the PE and PB ratios for RSG stock?
The Price/Earnings (PE) ratio for REPUBLIC SERVICES INC (RSG) is 31.03 and the Price/Book (PB) ratio is 5.53.
What is the financial health of REPUBLIC SERVICES INC (RSG) stock?
The financial health rating of REPUBLIC SERVICES INC (RSG) is 4 / 10.