REPUBLIC SERVICES INC (RSG)
US7607591002 - Common Stock
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. RSG scores excellent on profitability, but there are 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.
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
RSG has a Return On Assets of 5.51%. This is amongst the best in the industry. RSG outperforms 80.72% of its industry peers.
RSG has a Return On Equity of 16.42%. This is amongst the best in the industry. RSG outperforms 83.13% of its industry peers.
RSG has a better Return On Invested Capital (8.38%) than 74.70% 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 last Return On Invested Capital (8.38%) for RSG is above the 3 year average (7.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 16.42% | ||
| ROIC | 8.38% |
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 has a better Profit Margin (11.57%) than 90.36% of its industry peers.
In the last couple of years the Profit Margin of RSG has grown nicely.
RSG has a Operating Margin of 19.00%. This is amongst the best in the industry. RSG outperforms 92.77% of its industry peers.
In the last couple of years the Operating Margin of RSG has grown nicely.
The Gross Margin of RSG (40.24%) is better than 75.90% 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% | ||
| PM (TTM) | 11.57% | ||
| GM | 40.24% |
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.
Compared to 1 year ago, RSG has less shares outstanding
The number of shares outstanding for RSG has been reduced compared to 5 years ago.
Compared to 1 year ago, RSG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.82 indicates that RSG is not a great score, but indicates only limited risk for bankruptcy at the moment.
RSG has a better Altman-Z score (2.82) than 67.47% of its industry peers.
RSG has a debt to FCF ratio of 6.45. This is a slightly negative value and a sign of low solvency as RSG would need 6.45 years to pay back of all of its debts.
RSG has a better Debt to FCF ratio (6.45) than 63.86% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that RSG has dependencies on debt financing.
The Debt to Equity ratio of RSG (1.13) is worse than 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.45 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.02
WACC8.2%
2.3 Liquidity
RSG has a Current Ratio of 0.56. 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 worse Current ratio (0.56) than 92.77% of its industry peers.
A Quick Ratio of 0.54 indicates that RSG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.54, RSG is doing worse than 91.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.59% over the past year.
RSG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.63% yearly.
The Revenue has grown by 10.77% in the past year. This is quite good.
RSG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.31% yearly.
EPS 1Y (TTM)13.59%
EPS 3Y16.08%
EPS 5Y12.63%
EPS growth Q2Q24.78%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y13.8%
Revenue growth 5Y8.31%
Revenue growth Q2Q8.55%
3.2 Future
The Earnings Per Share is expected to grow by 8.87% 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 6.22% yearly.
EPS Next Y8.29%
EPS Next 2Y10.11%
EPS Next 3Y11.13%
EPS Next 5Y8.87%
Revenue Next Year8.84%
Revenue Next 2Y7.38%
Revenue Next 3Y6.96%
Revenue Next 5Y6.22%
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
The Price/Earnings ratio is 34.27, which means the current valuation is very expensive for RSG.
Compared to the rest of the industry, the Price/Earnings ratio of RSG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 24.84, RSG is valued a bit more expensive.
The Price/Forward Earnings ratio is 31.65, 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 (21.35), we can say RSG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.27 | ||
| Fwd PE | 31.65 |
4.2 Price Multiples
RSG's Enterprise Value to EBITDA ratio is in line with the industry average.
61.45% of the companies in the same industry are more expensive than RSG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.43 | ||
| EV/EBITDA | 16.46 |
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)4.13
PEG (5Y)2.71
EPS Next 2Y10.11%
EPS Next 3Y11.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, RSG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.37, RSG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, RSG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
On average, the dividend of RSG grows each year by 7.49%, which is quite nice.
RSG has paid a dividend for at least 10 years, which is 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)7.49%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
RSG pays out 36.86% 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.
DP36.86%
EPS Next 2Y10.11%
EPS Next 3Y11.13%
REPUBLIC SERVICES INC
NYSE:RSG (4/26/2024, 7:14:17 PM)
After market: 191.92 0 (0%)191.92
-1.64 (-0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap60.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.27 | ||
| Fwd PE | 31.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.13
PEG (5Y)2.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 16.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19% | ||
| PM (TTM) | 11.57% | ||
| GM | 40.24% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.59%
EPS 3Y16.08%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.77%
Revenue growth 3Y13.8%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y