REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
NYSE:RSG - New York Stock Exchange, Inc. - US7607591002 - Common Stock - Currency: USD
RSG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RSG had positive earnings in the past year.
RSG had a positive operating cash flow in the past year.
RSG had positive earnings in each of the past 5 years.
In the past 5 years RSG always reported a positive cash flow from operatings.
1.2 Ratios
RSG has a better Return On Assets (6.30%) than 72.29% of its industry peers.
RSG's Return On Equity of 17.87% is amongst the best of the industry. RSG outperforms 80.72% of its industry peers.
The Return On Invested Capital of RSG (9.06%) is better than 72.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RSG is below the industry average of 10.89%.
The last Return On Invested Capital (9.06%) for RSG is above the 3 year average (8.58%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 12.88%, RSG belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
In the last couple of years the Profit Margin of RSG has grown nicely.
With an excellent Operating Margin value of 20.34%, RSG belongs to the best of the industry, outperforming 91.57% of the companies in the same industry.
In the last couple of years the Operating Margin of RSG has grown nicely.
With a decent Gross Margin value of 42.02%, RSG is doing good in the industry, outperforming 71.08% 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 | 20.34% | ||
| 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 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 3.40. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.40, RSG is doing good in the industry, outperforming 68.67% of the companies in the same industry.
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.
The Debt to FCF ratio of RSG (5.65) is better than 67.47% 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.
The Debt to Equity ratio of RSG (1.10) is worse than 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 5.65 | ||
| Altman-Z | 3.4 |
ROIC/WACC1.09
WACC8.31%
2.3 Liquidity
A Current Ratio of 0.66 indicates that RSG may have some problems paying its short term obligations.
With a Current ratio value of 0.66, RSG is not doing good in the industry: 87.95% of the companies in the same industry are doing better.
A Quick Ratio of 0.64 indicates that RSG may have some problems paying its short term obligations.
RSG has a Quick ratio of 0.64. This is amonst the worse of the industry: RSG underperforms 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
RSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.25%, which is quite good.
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 6.13% in the last 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
RSG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.81% yearly.
RSG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.58% yearly.
EPS Next Y7.83%
EPS Next 2Y9.36%
EPS Next 3Y10.11%
EPS Next 5Y8.81%
Revenue Next Year5%
Revenue Next 2Y5.16%
Revenue Next 3Y5.46%
Revenue Next 5Y5.58%
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
Based on the Price/Earnings ratio of 38.43, the valuation of RSG can be described as expensive.
RSG's Price/Earnings is on the same level as the industry average.
RSG is valuated rather expensively when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.78, which means the current valuation is very expensive for RSG.
RSG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. RSG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.43 | ||
| Fwd PE | 32.78 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.63 | ||
| EV/EBITDA | 17.83 |
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)4.91
PEG (5Y)2.73
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.
Compared to an average industry Dividend Yield of 2.47, RSG pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.92, RSG pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
On average, the dividend of RSG grows each year by 7.46%, which is quite nice.
RSG has been paying a dividend for at least 10 years, so it has a reliable track record.
RSG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.46%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
RSG pays out 33.57% of its income as dividend. This is a sustainable payout ratio.
RSG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP33.57%
EPS Next 2Y9.36%
EPS Next 3Y10.11%
252.86
+1.86 (+0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners61.9%
Inst Owner Change1.3%
Ins Owners0.11%
Ins Owner Change0.04%
Market Cap79.02B
Analysts78.46
Price Target263.48 (4.2%)
Short Float %0.79%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend2.19
Dividend Growth(5Y)7.46%
DP33.57%
Div Incr Years20
Div Non Decr Years20
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)6.29%
PT rev (3m)12.84%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)0.93%
EPS NY rev (1m)0.8%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.43 | ||
| Fwd PE | 32.78 | ||
| P/S | 4.88 | ||
| P/FCF | 33.63 | ||
| P/OCF | 19.04 | ||
| P/B | 6.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.83 |
EPS(TTM)6.58
EY2.6%
EPS(NY)7.71
Fwd EY3.05%
FCF(TTM)7.52
FCFY2.97%
OCF(TTM)13.28
OCFY5.25%
SpS51.77
BVpS37.32
TBVpS-17.77
PEG (NY)4.91
PEG (5Y)2.73
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
WACC8.31%
ROIC/WACC1.09
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 5Y8.81%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.81%
Revenue Next Year5%
Revenue Next 2Y5.16%
Revenue Next 3Y5.46%
Revenue Next 5Y5.58%
EBIT growth 1Y12.53%
EBIT growth 3Y15.48%
EBIT growth 5Y12.34%
EBIT Next Year67.21%
EBIT Next 3Y23.87%
EBIT Next 5Y15.96%
FCF growth 1Y40.42%
FCF growth 3Y12.27%
FCF growth 5Y12.69%
OCF growth 1Y30.81%
OCF growth 3Y12.2%
OCF growth 5Y10.85%