Republic Services (NYSE:RSG) - Share price, News & Analysis

RSG fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	5/6
Financial Health	2/6
Dividends	4/6

RSG Stock Overview

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States.

Rewards

Trading at 26.6% below our estimate of its fair value

Earnings are forecast to grow 9.4% per year

Earnings grew by 32.4% over the past year

Risk Analysis

Has a high level of debt

Republic Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Republic Services
Historical stock prices
Current Share Price	US$129.90
52 Week High	US$145.98
52 Week Low	US$108.10
Beta	0.76
1 Month Change	-2.29%
3 Month Change	-1.22%
1 Year Change	19.39%
3 Year Change	49.93%
5 Year Change	103.83%
Change since IPO	664.12%

Recent News & Updates

Jun 20

Republic Services: Unclear Strategic Advantage

The Waste Management Industry is dominated by primarily two companies, one of which is Republic Services. Republic Services has a significant advantage over smaller players but is also significantly challenged by being the smaller player in the industry's duopoly. Overall financial performance does not suggest it has a clear competitive advantage over its peers.

Jun 13

These 4 Measures Indicate That Republic Services (NYSE:RSG) Is Using Debt Reasonably Well

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

May 30

Estimating The Fair Value Of Republic Services, Inc. (NYSE:RSG)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Republic Services...

Shareholder Returns

	RSG	US Commercial Services	US Market
7D	7.6%	4.3%	4.0%
1Y	19.4%	-9.6%	-20.5%

Return vs Industry: RSG exceeded the US Commercial Services industry which returned -9.6% over the past year.

Return vs Market: RSG exceeded the US Market which returned -20.5% over the past year.

Price Volatility

Is RSG's price volatile compared to industry and market?
RSG volatility
RSG Average Weekly Movement	3.5%
Commercial Services Industry Average Movement	7.3%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.5%
10% least volatile stocks in US Market	3.1%

Stable Share Price: RSG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: RSG's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	35,000	Jon Vander Ark	https://www.republicservices.com

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. Its collection services include curbside collection of material for transport to transfer stations, landfills, or recycling processing centers; supply of recycling and waste containers; and renting of compactors.

Republic Services Fundamentals Summary

How do Republic Services's earnings and revenue compare to its market cap?
RSG fundamental statistics
Market Cap	US$40.03b
Earnings (TTM)	US$1.35b
Revenue (TTM)	US$11.67b

30.5x

P/E Ratio

3.5x

P/S Ratio

Is RSG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RSG income statement (TTM)
Revenue	US$11.67b
Cost of Revenue	US$6.88b
Gross Profit	US$4.79b
Other Expenses	US$3.45b
Earnings	US$1.35b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.26
Gross Margin	41.07%
Net Profit Margin	11.54%
Debt/Equity Ratio	104.7%

How did RSG perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

43%

Payout Ratio

Does RSG pay a reliable dividends?

See RSG dividend history and benchmarks

When do you need to buy RSG by to receive an upcoming dividend?
Republic Services dividend dates
Ex Dividend Date	Jun 30 2022
Dividend Pay Date	Jul 15 2022
Days until Ex dividend	5 days
Days until Dividend pay date	20 days

Does RSG pay a reliable dividends?

See RSG dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is RSG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RSG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RSG. This is calculated by dividing RSG's market cap by their current preferred multiple.
What is RSG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$40.03b

RSG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.3x
Enterprise Value/EBITDA	14.5x
PEG Ratio	3.2x

Price to Earnings Ratio vs Peers

How does RSG's PE Ratio compare to its peers?

RSG PE Ratio vs Peers

The above table shows the PE ratio for RSG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	40.8x

Forward PE

Price-To-Earnings vs Peers: RSG is good value based on its Price-To-Earnings Ratio (30.5x) compared to the peer average (40.8x).

Price to Earnings Ratio vs Industry

How does RSG's PE Ratio compare vs other companies in the U.S. Commercial Services Industry?

Price-To-Earnings vs Industry: RSG is expensive based on its Price-To-Earnings Ratio (30.5x) compared to the US Commercial Services industry average (20.1x)

Price to Earnings Ratio vs Fair Ratio

What is RSG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RSG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	30.5x
Fair PE Ratio	32.5x

Price-To-Earnings vs Fair Ratio: RSG is good value based on its Price-To-Earnings Ratio (30.5x) compared to the estimated Fair Price-To-Earnings Ratio (32.5x).

Share Price vs Fair Value

What is the Fair Price of RSG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RSG ($129.9) is trading below our estimate of fair value ($176.88)

Significantly Below Fair Value: RSG is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: RSG is poor value based on its PEG Ratio (3.2x)

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Future Growth

How is Republic Services forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RSG's forecast earnings growth (9.4% per year) is above the savings rate (1.9%).

Earnings vs Market: RSG's earnings (9.4% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: RSG's revenue (6.9% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: RSG's revenue (6.9% 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 (16.3%).

Discover growth companies

Past Performance

How has Republic Services performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RSG has high quality earnings.

Growing Profit Margin: RSG's current net profit margins (11.5%) are higher than last year (10%).

Past Earnings Growth Analysis

Earnings Trend: RSG's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: RSG's earnings growth over the past year (32.4%) exceeds its 5-year average (4.6% per year).

Earnings vs Industry: RSG earnings growth over the past year (32.4%) exceeded the Commercial Services industry 25.7%.

Return on Equity

High ROE: RSG's Return on Equity (15%) is considered low.

Discover strong past performing companies

Financial Health

How is Republic Services's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RSG's short term assets ($1.7B) do not cover its short term liabilities ($2.3B).

Long Term Liabilities: RSG's short term assets ($1.7B) do not cover its long term liabilities ($13.6B).

Debt to Equity History and Analysis

Debt Level: RSG's net debt to equity ratio (104.3%) is considered high.

Reducing Debt: RSG's debt to equity ratio has increased from 99.8% to 104.7% over the past 5 years.

Debt Coverage: RSG's debt is well covered by operating cash flow (30.1%).

Interest Coverage: RSG's interest payments on its debt are well covered by EBIT (6.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.42%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: RSG's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: RSG's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (4.34%).

Stability and Growth of Payments

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.6%), RSG's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.4%), RSG's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure

CEO

Jon Vander Ark (46 yo)

3.08yrs

Tenure

US$7,925,408

Compensation

Mr. Jon Vander Ark serves as Chief Executive Officer at Republic Services, Inc. since June 25, 2021 and its Director since July 1, 2021. He has been President at Republic Services, Inc. since April 30, 201...

CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD7.93M) is below average for companies of similar size in the US market ($USD13.59M).

Compensation vs Earnings: Jon's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: RSG's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: RSG's board of directors are considered experienced (5.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31