NYSE:RSG

Stock Analysis Report

Executive Summary

Republic Services, Inc., together with its subsidiaries, provides non-hazardous solid waste collection, transfer, recycling, disposal, and energy services for small-container, large-container, municipal and residential, and energy services customers in the United States and Puerto Rico.

Snowflake

Fundamentals

Established dividend payer with questionable track record.


Similar Companies

Share Price & News

How has Republic Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

RSG

1.6%

US Commercial Services

0.07%

US Market


1 Year Return

23.0%

RSG

21.0%

US Commercial Services

8.9%

US Market

Return vs Industry: RSG exceeded the US Commercial Services industry which returned 21% over the past year.

Return vs Market: RSG exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

RSGIndustryMarket
7 Day1.3%1.6%0.07%
30 Day-0.3%2.5%-0.3%
90 Day0.6%2.9%-1.6%
1 Year25.3%23.0%25.6%21.0%11.3%8.9%
3 Year81.9%71.2%74.2%62.3%46.3%36.8%
5 Year148.0%121.3%103.5%83.0%62.1%44.3%

Price Volatility Vs. Market

How volatile is Republic Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Republic Services undervalued compared to its fair value and its price relative to the market?

1.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RSG ($87.25) is trading below our estimate of fair value ($88.72)

Significantly Below Fair Value: RSG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RSG is poor value based on its PE Ratio (26.9x) compared to the Commercial Services industry average (25.5x).

PE vs Market: RSG is poor value based on its PE Ratio (26.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: RSG is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: RSG is overvalued based on its PB Ratio (3.5x) compared to the US Commercial Services industry average (1.9x).


Next Steps

Future Growth

How is Republic Services forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RSG's forecast earnings growth (6.3% per year) is above the savings rate (2.7%).

Earnings vs Market: RSG's earnings (6.3% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: RSG's earnings are forecast to grow, but not significantly.

Revenue vs Market: RSG's revenue (4.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RSG's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RSG's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Republic Services performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RSG's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: RSG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RSG had negative earnings growth (-22.8%) over the past year, making it difficult to compare to the Commercial Services industry average (-2.4%).


Return on Equity

High ROE: RSG's Return on Equity (13.2%) is considered low.


Return on Assets

ROA vs Industry: RSG's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: RSG has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Republic Services's financial position?


Financial Position Analysis

Short Term Liabilities: RSG's short term assets ($1.5B) do not cover its short term liabilities ($3.6B)

Long Term Liabilities: RSG's short term assets (1.5B) do not cover its long term liabilities (10.5B)


Debt to Equity History and Analysis

Debt Level: RSG's debt to equity ratio (105.2%) is considered high

Reducing Debt: RSG's debt to equity ratio has increased from 89.8% to 105.2% over the past 5 years.

Debt Coverage: RSG's debt is well covered by operating cash flow (26.1%).

Interest Coverage: RSG's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: RSG has a high level of physical assets or inventory.

Debt Coverage by Assets: RSG's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Republic Services's current dividend yield, its reliability and sustainability?

1.86%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RSG's dividend (1.86%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: RSG's dividend (1.86%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: RSG's dividends per share have been stable in the past 10 years.

Growing Dividend: RSG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.2%), RSG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RSG's dividends in 3 years are forecast to be well covered by earnings (46.1% payout ratio).


Next Steps

Management

What is the CEO of Republic Services's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Don Slager (57yo)

8.8yrs

Tenure

US$11,787,571

Compensation

Mr. Donald W. Slager, also known as Don, has been the Chief Executive Officer at Republic Services, Inc. since January 1, 2011 and served as its President since December 5, 2008 until April 2019 and served ...


CEO Compensation Analysis

Compensation vs. Market: Don's total compensation ($USD11.79M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.2yrs

Average Tenure

57yo

Average Age

Experienced Management: RSG's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

55yo

Average Age

Experienced Board: RSG's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: RSG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$253,08030 Jul 19
Catharine Ellingsen
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,812
Max PriceUS$90.00
SellUS$5,783,38309 May 19
Donald Slager
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares69,966
Max PriceUS$82.66
SellUS$1,587,15801 May 19
Jon Ark
EntityIndividual
Role
President
President
Shares19,278
Max PriceUS$82.33
SellUS$813,48129 Mar 19
Jeffrey Hughes
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares10,118
Max PriceUS$80.40
SellUS$330,41929 Mar 19
Tomago Collins
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,100
Max PriceUS$80.59
SellUS$15629 Mar 19
Tomago Collins
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2
Max PriceUS$78.11
SellUS$437,02726 Mar 19
Ramon Rodriguez
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,480
Max PriceUS$79.75
BuyUS$108,52501 Nov 18
Jennifer Kirk
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$72.35

Ownership Breakdown


Management Team

  • Sue Klug (59yo)

    Chief Marketing Officer & Executive VP

    • Tenure: 3.1yrs
  • Don Slager (57yo)

    CEO & Director

    • Tenure: 8.8yrs
    • Compensation: US$11.79m
  • Chuck Serianni (57yo)

    Executive VP & CFO

    • Tenure: 5.2yrs
    • Compensation: US$2.82m
  • Brian Goebel (51yo)

    VP & Chief Accounting Officer

    • Tenure: 6.5yrs
  • Catharine Ellingsen (55yo)

    Executive VP

    • Tenure: 3.3yrs
    • Compensation: US$2.16m
  • Jeffrey Hughes (62yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 10.8yrs
    • Compensation: US$2.20m
  • Darcie Brossart

    Senior Vice President of Communications

    • Tenure: 7.8yrs
  • Jon Ark (44yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$3.52m
  • Tim Stuart

    Chief Operating Officer

    • Tenure: 0.5yrs
  • Nicole Giandinoto

    Senior VP of Investor Relations & Treasurer

    • Tenure: 0yrs

Board Members

  • Don Slager (57yo)

    CEO & Director

    • Tenure: 8.8yrs
    • Compensation: US$11.79m
  • John Trani (74yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$330.03k
  • Michael Larson (60yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$350.03k
  • Ramon Rodriguez (73yo)

    Independent Director

    • Tenure: 20.6yrs
    • Compensation: US$350.03k
  • Tom Handley (64yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$350.03k
  • Manuel Kadre (53yo)

    Independent Chairman of the Board

    • Tenure: 2.6yrs
    • Compensation: US$495.03k
  • Tomago Collins (47yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$350.03k
  • Jennifer Kirk (44yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$330.03k
  • Kim Pegula (50yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$330.03k
  • Sandra Volpe (52yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$330.03k

Company Information

Republic Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Republic Services, Inc.
  • Ticker: RSG
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$27.986b
  • Shares outstanding: 320.75m
  • Website: https://republicservices.com

Number of Employees


Location

  • Republic Services, Inc.
  • 18500 North Allied Way
  • Phoenix
  • Arizona
  • 85054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSGNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1998
RPUDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1998
0KW1LSE (London Stock Exchange)YesCommon StockGBUSDJul 1998
RSGA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1998

Biography

Republic Services, Inc., together with its subsidiaries, provides non-hazardous solid waste collection, transfer, recycling, disposal, and energy services for small-container, large-container, municipal an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:45
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.