REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
NYSE:RSG - New York Stock Exchange, Inc. - US7607591002 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RSG. RSG was compared to 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. RSG is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years RSG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RSG (6.31%) is better than 73.17% of its industry peers.
RSG has a Return On Equity of 17.91%. This is amongst the best in the industry. RSG outperforms 82.93% of its industry peers.
The Return On Invested Capital of RSG (9.30%) is better than 73.17% 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 10.12%.
The last Return On Invested Capital (9.30%) for RSG is above the 3 year average (8.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 17.91% | ||
| ROIC | 9.3% |
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
With an excellent Profit Margin value of 12.74%, RSG belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
RSG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.11%, RSG belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
RSG's Operating Margin has improved in the last couple of years.
RSG has a better Gross Margin (41.68%) than 71.95% of its industry peers.
RSG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.11% | ||
| PM (TTM) | 12.74% | ||
| GM | 41.68% |
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
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.
Compared to 5 years ago, RSG has less shares outstanding
RSG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.25 indicates that RSG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.25, RSG is doing good in the industry, outperforming 69.51% of the companies in the same industry.
The Debt to FCF ratio of RSG is 6.11, which is on the high side as it means it would take RSG, 6.11 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.11, RSG is doing good in the industry, outperforming 64.63% of the companies in the same industry.
RSG has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
RSG has a Debt to Equity ratio of 1.04. This is in the lower half of the industry: RSG underperforms 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.14
WACC8.17%
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 93.90% 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's Quick ratio of 0.56 is on the low side compared to the rest of the industry. RSG is outperformed by 89.02% 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 15.18%, 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.
RSG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.13%.
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)15.18%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%12.06%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%5.6%
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 8.31% on average per year.
RSG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.90% yearly.
EPS Next Y7.42%
EPS Next 2Y8.86%
EPS Next 3Y9.77%
EPS Next 5Y8.31%
Revenue Next Year5.34%
Revenue Next 2Y5.25%
Revenue Next 3Y5.4%
Revenue Next 5Y5.9%
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
The Price/Earnings ratio is 35.79, which means the current valuation is very expensive for RSG.
RSG's Price/Earnings ratio is in line with the industry average.
RSG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 33.32, which means the current valuation is very expensive for RSG.
The rest of the industry has a similar Price/Forward Earnings ratio as RSG.
When comparing the Price/Forward Earnings ratio of RSG to the average of the S&P500 Index (22.68), we can say RSG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.79 | ||
| Fwd PE | 33.32 |
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.
RSG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.74 | ||
| EV/EBITDA | 16.96 |
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)4.82
PEG (5Y)2.54
EPS Next 2Y8.86%
EPS Next 3Y9.77%
5. Dividend
5.1 Amount
RSG has a Yearly Dividend Yield of 1.00%.
Compared to an average industry Dividend Yield of 2.12, RSG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.00, RSG pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
On average, the dividend of RSG grows each year by 7.46%, which is quite nice.
RSG has been paying a dividend for at least 10 years, so it has 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)7.46%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
RSG pays out 33.63% 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.
DP33.63%
EPS Next 2Y8.86%
EPS Next 3Y9.77%
230.87
0.01 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners61.9%
Inst Owner Change0.17%
Ins Owners0.11%
Ins Owner Change0.01%
Market Cap72.30B
Analysts79.26
Price Target246.41 (6.73%)
Short Float %0.74%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend2.19
Dividend Growth(5Y)7.46%
DP33.63%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.56%
Min EPS beat(2)11.07%
Max EPS beat(2)12.05%
EPS beat(4)4
Avg EPS beat(4)8.47%
Min EPS beat(4)4.36%
Max EPS beat(4)12.05%
EPS beat(8)8
Avg EPS beat(8)7.97%
EPS beat(12)12
Avg EPS beat(12)8.37%
EPS beat(16)15
Avg EPS beat(16)7.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)-0.69%
Revenue beat(8)2
Avg Revenue beat(8)-0.36%
Revenue beat(12)6
Avg Revenue beat(12)0.27%
Revenue beat(16)9
Avg Revenue beat(16)0.52%
PT rev (1m)1.23%
PT rev (3m)5.16%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.79 | ||
| Fwd PE | 33.32 | ||
| P/S | 4.51 | ||
| P/FCF | 34.74 | ||
| P/OCF | 18.37 | ||
| P/B | 6.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.96 |
EPS(TTM)6.45
EY2.79%
EPS(NY)6.93
Fwd EY3%
FCF(TTM)6.65
FCFY2.88%
OCF(TTM)12.57
OCFY5.44%
SpS51.2
BVpS36.42
TBVpS-16.36
PEG (NY)4.82
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 17.91% | ||
| ROCE | 11.4% | ||
| ROIC | 9.3% | ||
| ROICexc | 9.32% | ||
| ROICexgc | 22.52% | ||
| OM | 20.11% | ||
| PM (TTM) | 12.74% | ||
| GM | 41.68% | ||
| FCFM | 12.98% |
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-Score9
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 103.98% | ||
| Cap/Sales | 11.57% | ||
| Interest Coverage | 6.62 | ||
| Cash Conversion | 78.59% | ||
| Profit Quality | 101.86% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 3.25 |
F-Score9
WACC8.17%
ROIC/WACC1.14
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)15.18%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%12.06%
EPS Next Y7.42%
EPS Next 2Y8.86%
EPS Next 3Y9.77%
EPS Next 5Y8.31%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%5.6%
Revenue Next Year5.34%
Revenue Next 2Y5.25%
Revenue Next 3Y5.4%
Revenue Next 5Y5.9%
EBIT growth 1Y13.39%
EBIT growth 3Y15.48%
EBIT growth 5Y12.34%
EBIT Next Year65.96%
EBIT Next 3Y23.97%
EBIT Next 5Y17.01%
FCF growth 1Y4.75%
FCF growth 3Y12.27%
FCF growth 5Y12.69%
OCF growth 1Y8.8%
OCF growth 3Y12.2%
OCF growth 5Y10.85%