REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
USA - NYSE:RSG - US7607591002 - Common Stock
226.94 USD
+0.23 (+0.1%)
226.94 USD
0 (0%)
RSG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. While RSG belongs to the best of the industry regarding profitability, 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.
RSG had a positive operating cash flow in the past year.
RSG had positive earnings in each of the past 5 years.
RSG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RSG (6.36%) is better than 76.19% of its industry peers.
RSG has a better Return On Equity (17.62%) than 84.52% of its industry peers.
With a decent Return On Invested Capital value of 9.16%, RSG is doing good in the industry, outperforming 73.81% 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 10.60%.
The 3 year average ROIC (8.58%) for RSG is below the current ROIC(9.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 17.62% | ||
| ROIC | 9.16% |
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 has a better Profit Margin (12.97%) than 86.90% of its industry peers.
RSG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.43%, RSG belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
In the last couple of years the Operating Margin of RSG has grown nicely.
RSG's Gross Margin of 42.28% is fine compared to the rest 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.43% | ||
| PM (TTM) | 12.97% | ||
| GM | 42.28% |
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.
RSG has less shares outstanding than it did 1 year ago.
RSG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RSG has been reduced compared to a year ago.
2.2 Solvency
RSG has an Altman-Z score of 3.20. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
RSG has a Altman-Z score of 3.20. This is in the better half of the industry: RSG outperforms 63.10% of its industry peers.
RSG has a debt to FCF ratio of 5.50. This is a neutral value as RSG would need 5.50 years to pay back of all of its debts.
The Debt to FCF ratio of RSG (5.50) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that RSG has dependencies on debt financing.
The Debt to Equity ratio of RSG (1.04) is worse than 70.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.2 |
ROIC/WACC1.13
WACC8.09%
2.3 Liquidity
A Current Ratio of 0.66 indicates that RSG may have some problems paying its short term obligations.
With a Current ratio value of 0.66, RSG is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
A Quick Ratio of 0.63 indicates that RSG may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, RSG is not doing good in the industry: 86.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.15% over the past year.
The Earnings Per Share has been growing by 14.07% on average over the past years. This is quite good.
RSG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.13%.
The Revenue has been growing by 9.25% on average over the past years. This is quite good.
EPS 1Y (TTM)12.15%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%9.94%
Revenue 1Y (TTM)5.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%4.62%
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 8.52% yearly.
Based on estimates for the next years, RSG will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
EPS Next Y7.36%
EPS Next 2Y8.82%
EPS Next 3Y9.59%
EPS Next 5Y8.52%
Revenue Next Year4.04%
Revenue Next 2Y4.74%
Revenue Next 3Y5.07%
Revenue Next 5Y5.45%
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 33.67.
The rest of the industry has a similar Price/Earnings ratio as RSG.
RSG is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 29.71, RSG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as RSG.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, RSG is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 29.71 |
4.2 Price Multiples
RSG's Enterprise Value to EBITDA ratio is in line with the industry average.
RSG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RSG is cheaper than 63.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.07 | ||
| EV/EBITDA | 16.05 |
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)4.57
PEG (5Y)2.39
EPS Next 2Y8.82%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
RSG has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.27, RSG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.08, RSG pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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
33.55% 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.
DP33.55%
EPS Next 2Y8.82%
EPS Next 3Y9.59%
226.94
+0.23 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners61.02%
Inst Owner Change-4.43%
Ins Owners0.11%
Ins Owner Change0%
Market Cap70.86B
Analysts77.78
Price Target269 (18.53%)
Short Float %0.79%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend2.19
Dividend Growth(5Y)7.46%
DP33.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.12%
Min EPS beat(2)-0.02%
Max EPS beat(2)2.26%
EPS beat(4)3
Avg EPS beat(4)6.34%
Min EPS beat(4)-0.02%
Max EPS beat(4)12.05%
EPS beat(8)7
Avg EPS beat(8)6.4%
EPS beat(12)11
Avg EPS beat(12)7.03%
EPS beat(16)14
Avg EPS beat(16)6.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)-1.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.08%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)8
Avg Revenue beat(16)0.25%
PT rev (1m)0.31%
PT rev (3m)1.67%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-2.84%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 29.71 | ||
| P/S | 4.33 | ||
| P/FCF | 30.07 | ||
| P/OCF | 17.04 | ||
| P/B | 5.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.05 |
EPS(TTM)6.74
EY2.97%
EPS(NY)7.64
Fwd EY3.37%
FCF(TTM)7.55
FCFY3.33%
OCF(TTM)13.32
OCFY5.87%
SpS52.42
BVpS38.59
TBVpS-16.62
PEG (NY)4.57
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 17.62% | ||
| ROCE | 11.24% | ||
| ROIC | 9.16% | ||
| ROICexc | 9.2% | ||
| ROICexgc | 22% | ||
| OM | 20.43% | ||
| PM (TTM) | 12.97% | ||
| GM | 42.28% | ||
| FCFM | 14.4% |
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-Score8
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 96.48% | ||
| Cap/Sales | 11.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.8% | ||
| Profit Quality | 110.99% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 3.2 |
F-Score8
WACC8.09%
ROIC/WACC1.13
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)12.15%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%9.94%
EPS Next Y7.36%
EPS Next 2Y8.82%
EPS Next 3Y9.59%
EPS Next 5Y8.52%
Revenue 1Y (TTM)5.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%4.62%
Revenue Next Year4.04%
Revenue Next 2Y4.74%
Revenue Next 3Y5.07%
Revenue Next 5Y5.45%
EBIT growth 1Y11.08%
EBIT growth 3Y15.48%
EBIT growth 5Y12.34%
EBIT Next Year67.11%
EBIT Next 3Y24.16%
EBIT Next 5Y16.14%
FCF growth 1Y25.87%
FCF growth 3Y12.27%
FCF growth 5Y12.69%
OCF growth 1Y22.59%
OCF growth 3Y12.2%
OCF growth 5Y10.85%