REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
USA - NYSE:RSG - US7607591002 - Common Stock
224.15 USD
+1.58 (+0.71%)
224.15 USD
0 (0%)
Taking everything into account, RSG scores 5 out of 10 in our fundamental rating. 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.
RSG had a positive operating cash flow in the past year.
RSG had positive earnings in each of the past 5 years.
Each year in the past 5 years RSG had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.36%, RSG is doing good in the industry, outperforming 76.19% of the companies in the same industry.
With an excellent Return On Equity value of 17.62%, RSG belongs to the best of the industry, outperforming 84.52% of the companies in the same industry.
RSG has a better Return On Invested Capital (9.16%) than 73.81% 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 10.57%.
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 Profit Margin of 12.97%. This is amongst the best in the industry. RSG outperforms 86.90% of its industry peers.
In the last couple of years the Profit Margin of RSG has grown nicely.
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.
Looking at the Gross Margin, with a value of 42.28%, RSG is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
RSG's Gross Margin has been stable in the last couple of years.
| 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.
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 3.17 indicates that RSG is not in any danger for bankruptcy at the moment.
RSG has a Altman-Z score of 3.17. 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.
RSG has a Debt to FCF ratio of 5.50. This is in the better half of the industry: RSG outperforms 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.
Looking at the Debt to Equity ratio, with a value of 1.04, RSG is doing worse than 70.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.14
WACC8.01%
2.3 Liquidity
RSG has a Current Ratio of 0.66. 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 (0.66) is worse than 90.48% of its industry peers.
RSG has a Quick Ratio of 0.66. 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 Quick ratio (0.63) than 86.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
RSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.15%, which is quite good.
The Earnings Per Share has been growing by 14.07% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.13% in the past year.
RSG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.25% yearly.
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 Y7.35%
EPS Next 2Y8.64%
EPS Next 3Y9.45%
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.
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 33.26, 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.
When comparing the Price/Earnings ratio of RSG to the average of the S&P500 Index (27.86), we can say RSG is valued inline with the index average.
The Price/Forward Earnings ratio is 29.45, which means the current valuation is very expensive for RSG.
RSG's Price/Forward Earnings ratio is in line with the industry average.
RSG is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.26 | ||
| Fwd PE | 29.45 |
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 a bit cheaper when compared to the industry. RSG is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.7 | ||
| EV/EBITDA | 15.8 |
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)4.53
PEG (5Y)2.36
EPS Next 2Y8.64%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
RSG has a Yearly Dividend Yield of 1.10%.
Compared to an average industry Dividend Yield of 2.34, 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 | 1.1% |
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
RSG pays out 33.55% of its income as dividend. This is a 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 2Y8.64%
EPS Next 3Y9.45%
224.15
+1.58 (+0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners59.95%
Inst Owner Change-4.43%
Ins Owners0.1%
Ins Owner Change0%
Market Cap69.98B
Analysts77.78
Price Target269 (20.01%)
Short Float %1.03%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)0.19%
PT rev (3m)0.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.84%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.26 | ||
| Fwd PE | 29.45 | ||
| P/S | 4.28 | ||
| P/FCF | 29.7 | ||
| P/OCF | 16.83 | ||
| P/B | 5.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.8 |
EPS(TTM)6.74
EY3.01%
EPS(NY)7.61
Fwd EY3.4%
FCF(TTM)7.55
FCFY3.37%
OCF(TTM)13.32
OCFY5.94%
SpS52.42
BVpS38.59
TBVpS-16.62
PEG (NY)4.53
PEG (5Y)2.36
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 | 3.17 |
F-Score8
WACC8.01%
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)12.15%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%9.94%
EPS Next Y7.35%
EPS Next 2Y8.64%
EPS Next 3Y9.45%
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 Year66.96%
EBIT Next 3Y24.08%
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%