REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
USA - NYSE:RSG - US7607591002 - Common Stock
228.48 USD
-3.73 (-1.61%)
228.87 USD
+0.39 (+0.17%)
Overall RSG gets a fundamental rating of 5 out of 10. We evaluated RSG against 84 industry peers in the Commercial Services & Supplies industry. While RSG has a great profitability rating, 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
RSG had positive earnings in the past year.
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 better Return On Assets (6.36%) than 76.19% of its industry peers.
Looking at the Return On Equity, with a value of 17.62%, RSG belongs to the top of the industry, outperforming 84.52% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.16%, RSG is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
RSG had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 10.60%.
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
Looking at the Profit Margin, with a value of 12.97%, RSG belongs to the top of the industry, outperforming 86.90% of the companies in the same industry.
In the last couple of years the Profit Margin of RSG has grown nicely.
RSG has a better Operating Margin (20.43%) than 94.05% of its industry peers.
RSG's Operating Margin has improved in the last couple of years.
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
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
RSG has less shares outstanding than it did 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 3.25. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
RSG has a Altman-Z score of 3.25. This is in the better half of the industry: RSG outperforms 64.29% 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.
The Debt to FCF ratio of RSG (5.50) is better than 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.
RSG's Debt to Equity ratio of 1.04 is on the low side compared to the rest of the industry. RSG is outperformed by 70.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.11
WACC8.24%
2.3 Liquidity
A Current Ratio of 0.66 indicates that RSG may have some problems paying its short term obligations.
RSG's Current ratio of 0.66 is on the low side compared to the rest of the industry. RSG is outperformed by 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's Quick ratio of 0.63 is on the low side compared to the rest of the industry. RSG is outperformed by 86.90% 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.
The Revenue has been growing slightly by 5.13% in the past year.
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)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.
The Revenue is expected to grow by 5.45% on average over the next years.
EPS Next Y7.36%
EPS Next 2Y8.82%
EPS Next 3Y9.59%
EPS Next 5Y8.52%
Revenue Next Year4.04%
Revenue Next 2Y4.73%
Revenue Next 3Y5.06%
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
RSG is valuated quite expensively with a Price/Earnings ratio of 33.90.
The rest of the industry has a similar Price/Earnings ratio as RSG.
RSG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
RSG is valuated quite expensively with a Price/Forward Earnings ratio of 29.91.
RSG's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RSG to the average of the S&P500 Index (22.73), we can say RSG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.9 | ||
| Fwd PE | 29.91 |
4.2 Price Multiples
RSG's Enterprise Value to EBITDA ratio is in line with the industry average.
63.10% 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 | 30.28 | ||
| EV/EBITDA | 16.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RSG may justify a higher PE ratio.
PEG (NY)4.6
PEG (5Y)2.41
EPS Next 2Y8.82%
EPS Next 3Y9.59%
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 2.27, RSG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.08, RSG pays less dividend than the S&P500 average, which is at 2.45.
| 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 been paying a dividend for at least 10 years, so it has 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
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 2Y8.82%
EPS Next 3Y9.59%
228.48
-3.73 (-1.61%)
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%
Market Cap71.34B
Analysts77.78
Price Target269 (17.73%)
Short Float %0.8%
Short Ratio1.85
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)0.31%
PT rev (3m)1.67%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-3.38%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.9 | ||
| Fwd PE | 29.91 | ||
| P/S | 4.36 | ||
| P/FCF | 30.28 | ||
| P/OCF | 17.15 | ||
| P/B | 5.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.37 |
EPS(TTM)6.74
EY2.95%
EPS(NY)7.64
Fwd EY3.34%
FCF(TTM)7.55
FCFY3.3%
OCF(TTM)13.32
OCFY5.83%
SpS52.42
BVpS38.59
TBVpS-16.62
PEG (NY)4.6
PEG (5Y)2.41
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 | 3.25 |
F-Score8
WACC8.24%
ROIC/WACC1.11
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 Y7.36%
EPS Next 2Y8.82%
EPS Next 3Y9.59%
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 2Y4.73%
Revenue Next 3Y5.06%
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%