Republic Services (RSG) has been delivering steady returns for investors, with a year-to-date gain of about 8%. Over the past month, the company’s stock price has edged up, reflecting ongoing investor interest in essential environmental services.
After a solid run earlier in the year, Republic Services has seen its share price hold relatively firm at $217.06, even as some recent momentum has cooled. Over the long haul, total shareholder returns paint a strong picture, with a 60% gain over three years and more than 140% over five, highlighting the company’s consistent value for patient investors.
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With the stock trading near all-time highs and analysts setting ambitious targets, investors now face a key question: is Republic Services currently undervalued and poised for further upside, or has the market fully factored in future growth?
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Most Popular Narrative: 12% Undervalued
Republic Services' fair value estimate stands noticeably above the latest closing share price, pointing to potential upside that has caught the market’s attention. What is fueling this optimism? The widely-followed narrative explores the business drivers and key assumptions behind the valuation.
Sustainability efforts such as the development of Polymer Centers and the Blue Polymers joint venture could drive future revenue growth by enhancing plastic circularity and decarbonization. These operations are expected to contribute to earnings starting in the second half of 2025.
Curious about the numbers behind this bullish outlook? The consensus narrative emphasizes ambitious profit margin forecasts, a robust track record of rising earnings, and an expected boost from green investments. Discover what is really powering that double-digit upside projection—are analysts making bold bets or playing it safe?
However, persistent weakness in construction and manufacturing volumes, as well as challenges integrating new acquisitions, could threaten Republic Services' growth narrative going forward.
While the fair value estimate suggests Republic Services is undervalued, its price-to-earnings ratio of 31.9x looks high compared to both the US Commercial Services industry average of 22.6x and a fair ratio of 28.9x. This raises the question: are investors paying up for quality, or is there valuation risk ahead?
If you see things differently or want to dive deeper into the data, chart your own course. The whole process takes less than three minutes. Do it your way
A great starting point for your Republic Services research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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