REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RSG - US7607591002 - Common Stock
213.2 USD
+0.14 (+0.07%)
213.2 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RSG. RSG was compared to 80 industry peers in the Commercial Services & Supplies industry. While RSG has a great profitability rating, there are some minor 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.
In the past year RSG had a positive cash flow from operations.
Each year in the past 5 years RSG has been profitable.
In the past 5 years RSG always reported a positive cash flow from operatings.
1.2 Ratios
RSG's Return On Assets of 6.24% is fine compared to the rest of the industry. RSG outperforms 78.75% of its industry peers.
The Return On Equity of RSG (17.75%) is better than 82.50% of its industry peers.
The Return On Invested Capital of RSG (9.19%) is better than 73.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RSG is in line with the industry average of 10.33%.
The 3 year average ROIC (8.58%) for RSG is below the current ROIC(9.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 17.75% | ||
| ROIC | 9.19% |
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
Looking at the Profit Margin, with a value of 12.77%, RSG belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
In the last couple of years the Profit Margin of RSG has grown nicely.
RSG has a Operating Margin of 20.16%. This is amongst the best in the industry. RSG outperforms 95.00% of its industry peers.
In the last couple of years the Operating Margin of RSG has grown nicely.
RSG has a better Gross Margin (42.17%) than 77.50% of its industry peers.
RSG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.16% | ||
| PM (TTM) | 12.77% | ||
| GM | 42.17% |
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.
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 an improved debt to assets ratio.
2.2 Solvency
RSG has an Altman-Z score of 3.00. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.00, RSG is doing good in the industry, outperforming 65.00% of the companies in the same industry.
The Debt to FCF ratio of RSG is 5.25, which is a neutral value as it means it would take RSG, 5.25 years of fcf income to pay off all of its debts.
RSG's Debt to FCF ratio of 5.25 is fine compared to the rest of the industry. RSG outperforms 68.75% of its industry peers.
RSG has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.04, RSG is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 3 |
ROIC/WACC1.17
WACC7.87%
2.3 Liquidity
A Current Ratio of 0.58 indicates that RSG may have some problems paying its short term obligations.
RSG has a worse Current ratio (0.58) than 88.75% of its industry peers.
A Quick Ratio of 0.56 indicates that RSG may have some problems paying its short term obligations.
RSG has a worse Quick ratio (0.56) than 83.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.76% 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 14.07% yearly.
Looking at the last year, RSG shows a small growth in Revenue. The Revenue has grown by 4.33% in the last 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)8.76%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%4.97%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.33%
3.2 Future
The Earnings Per Share is expected to grow by 8.37% on average over the next years. This is quite good.
Based on estimates for the next years, RSG will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y8.13%
EPS Next 2Y7.12%
EPS Next 3Y8.38%
EPS Next 5Y8.37%
Revenue Next Year3.78%
Revenue Next 2Y3.89%
Revenue Next 3Y4.28%
Revenue Next 5Y5.23%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.22, which means the current valuation is very expensive for RSG.
RSG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of RSG to the average of the S&P500 Index (26.59), we can say RSG is valued inline with the index average.
With a Price/Forward Earnings ratio of 28.80, RSG can be considered very expensive at the moment.
RSG's Price/Forward Earnings ratio is in line with the industry average.
RSG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.22 | ||
| Fwd PE | 28.8 |
4.2 Price Multiples
RSG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RSG indicates a somewhat cheap valuation: RSG is cheaper than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.09 | ||
| EV/EBITDA | 15.13 |
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)3.84
PEG (5Y)2.22
EPS Next 2Y7.12%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
RSG has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
RSG's Dividend Yield is a higher than the industry average which is at 0.89.
RSG's Dividend Yield is slightly below the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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.
RSG has decreased its dividend recently.
Dividend Growth(5Y)7.46%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
34.47% 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.
DP34.47%
EPS Next 2Y7.12%
EPS Next 3Y8.38%
213.2
+0.14 (+0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners60.78%
Inst Owner Change3.27%
Ins Owners0.1%
Ins Owner Change0%
Market Cap66.00B
Revenue(TTM)16.50B
Net Income(TTM)2.11B
Analysts77.5
Price TargetN/A
Short Float %1.05%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend2.19
Dividend Growth(5Y)7.46%
DP34.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.79%
Min EPS beat(2)-0.02%
Max EPS beat(2)5.6%
EPS beat(4)3
Avg EPS beat(4)4.97%
Min EPS beat(4)-0.02%
Max EPS beat(4)12.05%
EPS beat(8)7
Avg EPS beat(8)6.21%
EPS beat(12)11
Avg EPS beat(12)6.77%
EPS beat(16)14
Avg EPS beat(16)6.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-1.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-1.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.24%
Revenue beat(12)3
Avg Revenue beat(12)-0.62%
Revenue beat(16)7
Avg Revenue beat(16)-0.02%
PT rev (1m)-3.38%
PT rev (3m)-6.8%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-5%
EPS NY rev (1m)0.5%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.22 | ||
| Fwd PE | 28.8 | ||
| P/S | 4 | ||
| P/FCF | 26.09 | ||
| P/OCF | 15.22 | ||
| P/B | 5.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.13 |
EPS(TTM)6.83
EY3.2%
EPS(NY)7.4
Fwd EY3.47%
FCF(TTM)8.17
FCFY3.83%
OCF(TTM)14.01
OCFY6.57%
SpS53.31
BVpS38.35
TBVpS-17.53
PEG (NY)3.84
PEG (5Y)2.22
Graham Number76.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 17.75% | ||
| ROCE | 11.27% | ||
| ROIC | 9.19% | ||
| ROICexc | 9.21% | ||
| ROICexgc | 22.34% | ||
| OM | 20.16% | ||
| PM (TTM) | 12.77% | ||
| GM | 42.17% | ||
| FCFM | 15.33% |
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%
ROICexgc growth 3Y7.54%
ROICexgc 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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.25 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 94.8% | ||
| Cap/Sales | 10.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.86% | ||
| Profit Quality | 120.05% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 3 |
F-Score7
WACC7.87%
ROIC/WACC1.17
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)8.76%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%4.97%
EPS Next Y8.13%
EPS Next 2Y7.12%
EPS Next 3Y8.38%
EPS Next 5Y8.37%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.33%
Revenue Next Year3.78%
Revenue Next 2Y3.89%
Revenue Next 3Y4.28%
Revenue Next 5Y5.23%
EBIT growth 1Y6.47%
EBIT growth 3Y15.48%
EBIT growth 5Y12.34%
EBIT Next Year67.08%
EBIT Next 3Y23.05%
EBIT Next 5Y16.15%
FCF growth 1Y32.19%
FCF growth 3Y12.27%
FCF growth 5Y12.69%
OCF growth 1Y23%
OCF growth 3Y12.2%
OCF growth 5Y10.85%
REPUBLIC SERVICES INC / RSG FAQ
What is the fundamental rating for RSG stock?
ChartMill assigns a fundamental rating of 5 / 10 to RSG.
What is the valuation status for RSG stock?
ChartMill assigns a valuation rating of 3 / 10 to REPUBLIC SERVICES INC (RSG). This can be considered as Overvalued.
What is the profitability of RSG stock?
REPUBLIC SERVICES INC (RSG) has a profitability rating of 8 / 10.
How financially healthy is REPUBLIC SERVICES INC?
The financial health rating of REPUBLIC SERVICES INC (RSG) is 4 / 10.
Is the dividend of REPUBLIC SERVICES INC sustainable?
The dividend rating of REPUBLIC SERVICES INC (RSG) is 5 / 10 and the dividend payout ratio is 34.47%.