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. 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
In the past year RSG was profitable.
In the past year RSG had a positive cash flow from operations.
In the past 5 years RSG has always been profitable.
RSG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RSG has a Return On Assets of 6.36%. This is in the better half of the industry: RSG outperforms 77.38% of its industry peers.
The Return On Equity of RSG (17.62%) is better than 84.52% of its industry peers.
RSG has a Return On Invested Capital of 9.16%. This is in the better half of the industry: RSG outperforms 73.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RSG is below the industry average of 11.08%.
The last Return On Invested Capital (9.16%) for RSG is above the 3 year average (8.58%), which is a sign of increasing profitability.
| 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 Profit Margin of 12.97%. This is amongst the best in the industry. RSG outperforms 86.90% of its industry peers.
RSG's Profit Margin has improved in the last couple of years.
RSG has a Operating Margin of 20.43%. This is amongst the best in the industry. RSG outperforms 94.05% of its industry peers.
RSG's Operating Margin has improved in the last couple of years.
The Gross Margin of RSG (42.28%) is better than 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.
The number of shares outstanding for RSG has been reduced compared to 5 years ago.
Compared to 1 year ago, RSG has an improved debt to assets ratio.
2.2 Solvency
RSG has an Altman-Z score of 3.26. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.26, RSG is in the better half of the industry, outperforming 65.48% of the companies in the same industry.
The Debt to FCF ratio of RSG is 5.50, which is a neutral value as it means it would take RSG, 5.50 years of fcf income to pay off all of its debts.
RSG has a Debt to FCF ratio of 5.50. This is in the better half of the industry: RSG outperforms 69.05% 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.
RSG has a worse Debt to Equity ratio (1.04) than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.26 |
ROIC/WACC1.13
WACC8.14%
2.3 Liquidity
A Current Ratio of 0.66 indicates that RSG may have some problems paying its short term obligations.
RSG has a worse Current ratio (0.66) than 88.10% of its industry peers.
A Quick Ratio of 0.63 indicates that RSG may have some problems paying its short term obligations.
RSG has a Quick ratio of 0.63. This is amonst the worse of the industry: RSG underperforms 85.71% of its industry peers.
| 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.
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 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
The Earnings Per Share is expected to grow by 8.52% 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 5.45% yearly.
EPS Next Y7.78%
EPS Next 2Y9.4%
EPS Next 3Y10.08%
EPS Next 5Y8.52%
Revenue Next Year5.01%
Revenue Next 2Y5.19%
Revenue Next 3Y5.44%
Revenue Next 5Y5.45%
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
A Price/Earnings ratio of 34.84 indicates a quite expensive valuation of RSG.
The rest of the industry has a similar Price/Earnings ratio as RSG.
When comparing the Price/Earnings ratio of RSG to the average of the S&P500 Index (26.82), we can say RSG is valued slightly more expensively.
With a Price/Forward Earnings ratio of 30.42, RSG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as RSG.
RSG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.84 | ||
| Fwd PE | 30.42 |
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 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.15 | ||
| EV/EBITDA | 16.4 |
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)4.48
PEG (5Y)2.48
EPS Next 2Y9.4%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, RSG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.30, RSG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, RSG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of RSG is nicely growing with an annual growth rate of 7.46%!
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.
The dividend of RSG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP33.55%
EPS Next 2Y9.4%
EPS Next 3Y10.08%
NYSE:RSG (8/19/2025, 11:02:05 AM)
234.85
+2.42 (+1.04%)
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 Change0.02%
Market Cap73.39B
Analysts77.78
Price Target268.17 (14.19%)
Short Float %0.77%
Short Ratio1.77
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)0.66%
PT rev (3m)1.78%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-3.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-1.31%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.84 | ||
| Fwd PE | 30.42 | ||
| P/S | 4.48 | ||
| P/FCF | 31.15 | ||
| P/OCF | 17.65 | ||
| P/B | 6.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.4 |
EPS(TTM)6.74
EY2.87%
EPS(NY)7.72
Fwd EY3.29%
FCF(TTM)7.54
FCFY3.21%
OCF(TTM)13.31
OCFY5.67%
SpS52.37
BVpS38.56
TBVpS-16.6
PEG (NY)4.48
PEG (5Y)2.48
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 | 3.26 |
F-Score8
WACC8.14%
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 Y7.78%
EPS Next 2Y9.4%
EPS Next 3Y10.08%
EPS Next 5Y8.52%
Revenue 1Y (TTM)5.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%4.62%
Revenue Next Year5.01%
Revenue Next 2Y5.19%
Revenue Next 3Y5.44%
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%