REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
NYSE:RSG - New York Stock Exchange, Inc. - US7607591002 - Common Stock - Currency: USD
Overall RSG gets a fundamental rating of 5 out of 10. We evaluated RSG against 83 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
Looking at the Return On Assets, with a value of 6.30%, RSG is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
The Return On Equity of RSG (17.87%) is better than 80.72% of its industry peers.
The Return On Invested Capital of RSG (9.06%) is better than 68.67% of its industry peers.
RSG had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 11.67%.
The 3 year average ROIC (8.58%) for RSG is below the current ROIC(9.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 17.87% | ||
| ROIC | 9.06% |
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 12.88%, RSG belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
RSG's Profit Margin has improved in the last couple of years.
The Operating Margin of RSG (20.34%) is better than 91.57% of its industry peers.
RSG's Operating Margin has improved in the last couple of years.
The Gross Margin of RSG (42.02%) is better than 71.08% of its industry peers.
RSG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.34% | ||
| PM (TTM) | 12.88% | ||
| GM | 42.02% |
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 below the Cost of Capital (WACC), so RSG is destroying value.
Compared to 1 year ago, RSG has less shares outstanding
Compared to 5 years ago, RSG has less shares outstanding
The debt/assets ratio for RSG has been reduced compared to a year ago.
2.2 Solvency
RSG has an Altman-Z score of 3.40. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
RSG has a Altman-Z score of 3.40. This is in the better half of the industry: RSG outperforms 67.47% of its industry peers.
RSG has a debt to FCF ratio of 5.65. This is a neutral value as RSG would need 5.65 years to pay back of all of its debts.
RSG's Debt to FCF ratio of 5.65 is fine compared to the rest of the industry. RSG outperforms 66.27% of its industry peers.
RSG has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
RSG has a worse Debt to Equity ratio (1.10) than 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 5.65 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.92
WACC9.82%
2.3 Liquidity
A Current Ratio of 0.66 indicates that RSG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.66, RSG is doing worse than 89.16% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.64, RSG is doing worse than 89.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.25% 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 6.13% 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)13.25%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%8.97%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.81%
3.2 Future
Based on estimates for the next years, RSG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.00% on average per year.
RSG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.62% yearly.
EPS Next Y7.83%
EPS Next 2Y9.36%
EPS Next 3Y10.11%
EPS Next 5Y9%
Revenue Next Year5.02%
Revenue Next 2Y5.18%
Revenue Next 3Y5.47%
Revenue Next 5Y5.62%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 38.19, RSG can be considered very expensive at the moment.
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 (26.31), we can say RSG is valued slightly more expensively.
With a Price/Forward Earnings ratio of 32.57, RSG can be considered very expensive at the moment.
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 (22.13), we can say RSG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.19 | ||
| Fwd PE | 32.57 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.41 | ||
| EV/EBITDA | 17.85 |
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)4.88
PEG (5Y)2.71
EPS Next 2Y9.36%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, RSG is not a good candidate for dividend investing.
RSG's Dividend Yield is a higher than the industry average which is at 2.57.
With a Dividend Yield of 0.92, RSG pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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
RSG pays out 33.57% of its income as dividend. This is a sustainable payout ratio.
The dividend of RSG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.57%
EPS Next 2Y9.36%
EPS Next 3Y10.11%
251.26
-0.59 (-0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners61.64%
Inst Owner Change1.49%
Ins Owners0.11%
Ins Owner Change0.05%
Market Cap78.52B
Analysts78.52
Price Target264.6 (5.31%)
Short Float %0.77%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend2.19
Dividend Growth(5Y)7.46%
DP33.57%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.15%
Min EPS beat(2)2.26%
Max EPS beat(2)12.05%
EPS beat(4)4
Avg EPS beat(4)7.43%
Min EPS beat(4)2.26%
Max EPS beat(4)12.05%
EPS beat(8)8
Avg EPS beat(8)7.12%
EPS beat(12)12
Avg EPS beat(12)7.91%
EPS beat(16)15
Avg EPS beat(16)7.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)-0.69%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)9
Avg Revenue beat(16)0.51%
PT rev (1m)0.42%
PT rev (3m)6.33%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)0.58%
EPS NY rev (1m)0%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.19 | ||
| Fwd PE | 32.57 | ||
| P/S | 4.85 | ||
| P/FCF | 33.41 | ||
| P/OCF | 18.92 | ||
| P/B | 6.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.85 |
EPS(TTM)6.58
EY2.62%
EPS(NY)7.71
Fwd EY3.07%
FCF(TTM)7.52
FCFY2.99%
OCF(TTM)13.28
OCFY5.28%
SpS51.77
BVpS37.32
TBVpS-17.77
PEG (NY)4.88
PEG (5Y)2.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 17.87% | ||
| ROCE | 11.11% | ||
| ROIC | 9.06% | ||
| ROICexc | 9.09% | ||
| ROICexgc | 21.79% | ||
| OM | 20.34% | ||
| PM (TTM) | 12.88% | ||
| GM | 42.02% | ||
| FCFM | 14.52% |
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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 5.65 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 97.44% | ||
| Cap/Sales | 11.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.76% | ||
| Profit Quality | 112.75% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 3.4 |
F-Score7
WACC9.82%
ROIC/WACC0.92
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)13.25%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%8.97%
EPS Next Y7.83%
EPS Next 2Y9.36%
EPS Next 3Y10.11%
EPS Next 5Y9%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.81%
Revenue Next Year5.02%
Revenue Next 2Y5.18%
Revenue Next 3Y5.47%
Revenue Next 5Y5.62%
EBIT growth 1Y12.53%
EBIT growth 3Y15.48%
EBIT growth 5Y12.34%
EBIT Next Year67.83%
EBIT Next 3Y24.35%
EBIT Next 5Y16.17%
FCF growth 1Y40.42%
FCF growth 3Y12.27%
FCF growth 5Y12.69%
OCF growth 1Y30.81%
OCF growth 3Y12.2%
OCF growth 5Y10.85%