REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RSG - US7607591002 - Common Stock
213.14 USD
-0.32 (-0.15%)
213.14 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. RSG scores excellent on profitability, but 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
RSG had positive earnings in the past year.
In the past year RSG had a positive cash flow from operations.
RSG had positive earnings in each of the past 5 years.
Each year in the past 5 years RSG had a positive operating cash flow.
1.2 Ratios
RSG has a Return On Assets of 6.24%. This is in the better half of the industry: RSG outperforms 79.27% 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 82.93% of the companies in the same industry.
RSG's Return On Invested Capital of 9.19% is fine compared to the rest of the industry. RSG outperforms 74.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RSG is in line with the industry average of 10.18%.
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 92.68% 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 95.12% of its industry peers.
In the last couple of years the Operating Margin of RSG has grown nicely.
The Gross Margin of RSG (42.17%) is better than 78.05% 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.
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
RSG has an Altman-Z score of 3.00. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
RSG's Altman-Z score of 3.00 is fine compared to the rest of the industry. RSG outperforms 63.41% of its industry peers.
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.
RSG's Debt to FCF ratio of 5.25 is fine compared to the rest of the industry. RSG outperforms 68.29% of its industry peers.
RSG has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
RSG's Debt to Equity ratio of 1.04 is on the low side compared to the rest of the industry. RSG is outperformed by 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 3 |
ROIC/WACC1.16
WACC7.91%
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.
RSG's Current ratio of 0.58 is on the low side compared to the rest of the industry. RSG is outperformed by 90.24% of its industry peers.
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 has a Quick ratio of 0.56. This is amonst the worse of the industry: RSG underperforms 85.37% 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.
The Earnings Per Share has been growing by 14.07% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.33% in the past 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
The Earnings Per Share is expected to grow by 8.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.23% on average over the next years.
EPS Next Y8.13%
EPS Next 2Y7.12%
EPS Next 3Y8.38%
EPS Next 5Y8.37%
Revenue Next Year3.78%
Revenue Next 2Y3.89%
Revenue Next 3Y4.28%
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
Based on the Price/Earnings ratio of 31.21, 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 (26.38), we can say RSG is valued inline with the index average.
A Price/Forward Earnings ratio of 28.80 indicates a quite expensive valuation of RSG.
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 23.83, RSG is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 28.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RSG.
Based on the Price/Free Cash Flow ratio, RSG is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.09 | ||
| EV/EBITDA | 15.12 |
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)3.84
PEG (5Y)2.22
EPS Next 2Y7.12%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
RSG has a Yearly Dividend Yield of 1.17%.
RSG's Dividend Yield is a higher than the industry average which is at 0.91.
RSG's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of RSG is nicely growing with an annual growth rate of 7.46%!
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
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 2Y7.12%
EPS Next 3Y8.38%
213.14
-0.32 (-0.15%)
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 Cap65.98B
Revenue(TTM)16.50B
Net Income(TTM)2.11B
Analysts77.5
Price Target250.7 (17.62%)
Short Float %1.05%
Short Ratio2.23
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)-3.38%
PT rev (3m)-6.8%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-5%
EPS NY rev (1m)0.5%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 28.8 | ||
| P/S | 4 | ||
| P/FCF | 26.09 | ||
| P/OCF | 15.21 | ||
| P/B | 5.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.12 |
EPS(TTM)6.83
EY3.2%
EPS(NY)7.4
Fwd EY3.47%
FCF(TTM)8.17
FCFY3.83%
OCF(TTM)14.01
OCFY6.57%
SpS53.31
BVpS38.35
TBVpS-17.53
PEG (NY)3.84
PEG (5Y)2.22
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 |
F-Score7
WACC7.91%
ROIC/WACC1.16
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 Y8.13%
EPS Next 2Y7.12%
EPS Next 3Y8.38%
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 3Y4.28%
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 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 34.47%.