REPUBLIC SERVICES INC (RSG) Stock Fundamental Analysis
NYSE:RSG - New York Stock Exchange, Inc. - US7607591002 - Common Stock - Currency: USD
Taking everything into account, RSG scores 5 out of 10 in our fundamental rating. RSG was compared to 83 industry peers in the Commercial Services & Supplies industry. While RSG belongs to the best of the industry regarding profitability, 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.
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
With a decent Return On Assets value of 6.30%, RSG is doing good in the industry, outperforming 73.49% of the companies in the same industry.
RSG has a Return On Equity of 17.87%. This is amongst the best in the industry. RSG outperforms 81.93% of its industry peers.
RSG has a better Return On Invested Capital (9.06%) than 72.29% 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 10.57%.
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 86.75% 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 20.34%. This is amongst the best in the industry. RSG outperforms 91.57% of its industry peers.
RSG's Operating Margin has improved in the last couple of years.
RSG has a Gross Margin of 42.02%. This is in the better half of the industry: RSG outperforms 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
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.
RSG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RSG has been reduced compared to a year ago.
2.2 Solvency
RSG has an Altman-Z score of 3.38. This indicates that RSG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.38, RSG is in the better half of the industry, outperforming 71.08% 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.
RSG has a Debt to FCF ratio of 5.65. This is in the better half 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's Debt to Equity ratio of 1.10 is on the low side compared to the rest of the industry. RSG is outperformed by 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 5.65 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.11
WACC8.15%
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.
RSG has a Quick ratio of 0.66. This is amonst the worse of the industry: RSG underperforms 86.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
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.
RSG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.13%.
The Revenue has been growing by 9.25% on average over the past years. This is quite good.
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 Y6.97%
EPS Next 2Y8.87%
EPS Next 3Y9.8%
EPS Next 5Y8.81%
Revenue Next Year5.05%
Revenue Next 2Y5.19%
Revenue Next 3Y5.44%
Revenue Next 5Y5.58%
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
With a Price/Earnings ratio of 38.07, 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 (28.22), we can say RSG is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 32.77, the valuation of RSG can be described as expensive.
RSG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.86. RSG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.07 | ||
| Fwd PE | 32.77 |
4.2 Price Multiples
RSG's Enterprise Value to EBITDA is on the same level as the industry average.
RSG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.31 | ||
| EV/EBITDA | 17.74 |
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)5.47
PEG (5Y)2.71
EPS Next 2Y8.87%
EPS Next 3Y9.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, RSG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.54, RSG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, RSG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The dividend of RSG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP33.57%
EPS Next 2Y8.87%
EPS Next 3Y9.8%
250.52
+1.11 (+0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners61.9%
Inst Owner Change1.18%
Ins Owners0.11%
Ins Owner Change0.03%
Market Cap78.29B
Analysts78.46
Price Target255.87 (2.14%)
Short Float %1.06%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)7.02%
Min EPS beat(2)2%
Max EPS beat(2)12.05%
EPS beat(4)4
Avg EPS beat(4)7.37%
Min EPS beat(4)2%
Max EPS beat(4)12.05%
EPS beat(8)8
Avg EPS beat(8)7.09%
EPS beat(12)12
Avg EPS beat(12)7.89%
EPS beat(16)15
Avg EPS beat(16)7.49%
Revenue beat(2)0
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
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)0.5%
PT rev (1m)2.82%
PT rev (3m)10.93%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.07 | ||
| Fwd PE | 32.77 | ||
| P/S | 4.84 | ||
| P/FCF | 33.31 | ||
| P/OCF | 18.87 | ||
| P/B | 6.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.74 |
EPS(TTM)6.58
EY2.63%
EPS(NY)7.64
Fwd EY3.05%
FCF(TTM)7.52
FCFY3%
OCF(TTM)13.28
OCFY5.3%
SpS51.77
BVpS37.32
TBVpS-17.77
PEG (NY)5.47
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 | 0.66 | ||
| Altman-Z | 3.38 |
F-Score7
WACC8.15%
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)13.25%
EPS 3Y15.83%
EPS 5Y14.07%
EPS Q2Q%8.97%
EPS Next Y6.97%
EPS Next 2Y8.87%
EPS Next 3Y9.8%
EPS Next 5Y8.81%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y12.38%
Revenue growth 5Y9.25%
Sales Q2Q%3.81%
Revenue Next Year5.05%
Revenue Next 2Y5.19%
Revenue Next 3Y5.44%
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%