REPUBLIC SERVICES INC (RSG)
US7607591002 - Common Stock
RSG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. While RSG belongs to the best of the industry regarding profitability, 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
In the past year RSG was profitable.
RSG had a positive operating cash flow in the past year.
Each year in the past 5 years RSG has been profitable.
Each year in the past 5 years RSG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.19%, RSG is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
RSG's Return On Equity of 17.55% is fine compared to the rest of the industry. RSG outperforms 79.52% of its industry peers.
RSG's Return On Invested Capital of 8.89% is fine compared to the rest of the industry. RSG outperforms 71.08% of its industry peers.
RSG had an Average Return On Invested Capital over the past 3 years of 7.86%. This is below the industry average of 10.00%.
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
RSG's Profit Margin of 12.46% is amongst the best of the industry. RSG outperforms 89.16% of its industry peers.
RSG's Profit Margin has improved in the last couple of years.
RSG's Operating Margin of 19.76% is amongst the best of the industry. RSG outperforms 91.57% of its industry peers.
In the last couple of years the Operating Margin of RSG has grown nicely.
RSG has a better Gross Margin (41.22%) than 73.49% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RSG is still creating some value.
The number of shares outstanding for RSG has been reduced compared to 1 year ago.
RSG has less shares outstanding than it did 5 years ago.
RSG has a worse debt/assets ratio than last year.
2.2 Solvency
RSG has an Altman-Z score of 3.05. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
RSG has a Altman-Z score of 3.05. This is in the better half of the industry: RSG outperforms 62.65% of its industry peers.
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 better Debt to FCF ratio (6.59) than 61.45% 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.
The Debt to Equity ratio of RSG (1.07) is worse than 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.09
WACC8.17%
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.
The Current ratio of RSG (0.64) is worse than 89.16% of its industry peers.
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 86.75% of its industry peers.
| 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.
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%.
The Revenue has been growing by 8.31% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 8.77% on average over the next years. This is quite good.
RSG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.53% yearly.
EPS Next Y12.41%
EPS Next 2Y10.78%
EPS Next 3Y10.85%
EPS Next 5Y8.77%
Revenue Next Year8.04%
Revenue Next 2Y6.85%
Revenue Next 3Y6.37%
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
Based on the Price/Earnings ratio of 32.44, 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.
RSG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.64, which means the current valuation is very expensive for RSG.
The rest of the industry has a similar Price/Forward Earnings ratio as RSG.
RSG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 29.64 |
4.2 Price Multiples
RSG's Enterprise Value to EBITDA is on the same level as the industry average.
RSG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.45 | ||
| EV/EBITDA | 15.95 |
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)2.62
PEG (5Y)2.57
EPS Next 2Y10.78%
EPS Next 3Y10.85%
5. Dividend
5.1 Amount
RSG has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.99, RSG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, RSG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of RSG is nicely growing with an annual growth rate of 7.49%!
RSG has been paying a dividend for at least 10 years, so it has a reliable track record.
RSG has not decreased their dividend for at least 10 years, which is a reliable track record.
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 2Y10.78%
EPS Next 3Y10.85%
REPUBLIC SERVICES INC
NYSE:RSG (12/20/2024, 8:04:00 PM)
After market: 203.73 0 (0%)203.73
-0.22 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners58.55%
Inst Owner Change-0.57%
Ins Owners35.33%
Ins Owner Change-0.01%
Market Cap63.80B
Analysts77.04
Price Target227.94 (11.88%)
Short Float %0.68%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)2.66%
PT rev (3m)3.33%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)-4.75%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 29.64 | ||
| P/S | 4.03 | ||
| P/FCF | 33.45 | ||
| P/OCF | 16.73 | ||
| P/B | 5.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.95 |
EPS(TTM)6.28
EY3.08%
EPS(NY)6.87
Fwd EY3.37%
FCF(TTM)6.09
FCFY2.99%
OCF(TTM)12.17
OCFY5.98%
SpS50.51
BVpS35.86
TBVpS-16.32
PEG (NY)2.62
PEG (5Y)2.57
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 | 3.05 |
F-Score8
WACC8.17%
ROIC/WACC1.09
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 Y12.41%
EPS Next 2Y10.78%
EPS Next 3Y10.85%
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 2Y6.85%
Revenue Next 3Y6.37%
Revenue Next 5Y6.53%
EBIT growth 1Y14.67%
EBIT growth 3Y15.11%
EBIT growth 5Y10.45%
EBIT Next Year77.41%
EBIT Next 3Y26.54%
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%