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.

Rewards

Trading at 15.2% below its fair value

Earnings are forecast to grow 4.88% per year

Pays a high and reliable dividend of 1.76%

Risk Analysis

Has a high level of debt



Snowflake Analysis

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

Stable Share Price: RSG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

RSG

0.3%

US Commercial Services

-0.09%

US Market


1 Year Return

24.5%

RSG

24.6%

US Commercial Services

23.9%

US Market

Return vs Industry: RSG matched the US Commercial Services industry which returned 23.1% over the past year.

Return vs Market: RSG matched the US Market which returned 24.6% over the past year.


Shareholder returns

RSGIndustryMarket
7 Day1.0%0.3%-0.09%
30 Day5.4%4.5%3.1%
90 Day9.7%6.2%10.4%
1 Year26.8%24.5%29.2%24.6%26.6%23.9%
3 Year73.8%63.8%65.3%54.5%50.9%41.2%
5 Year159.9%132.4%110.7%89.4%78.1%58.5%

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?

13.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RSG ($92.14) is trading below our estimate of fair value ($108.69)

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 (27.4x) compared to the Commercial Services industry average (26.4x).

PE vs Market: RSG is poor value based on its PE Ratio (27.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RSG is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

PB vs Industry: RSG is overvalued based on its PB Ratio (3.7x) compared to the US Commercial Services industry average (2.1x).


Next Steps

Future Growth

How is Republic Services forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RSG's forecast earnings growth (4.9% per year) is above the savings rate (1.7%).

Earnings vs Market: RSG's earnings (4.9% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: RSG's revenue (4.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: RSG's revenue (4.1% 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 (14.4%).


Next Steps

Past Performance

How has Republic Services performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSG has high quality earnings.

Growing Profit Margin: RSG's current net profit margins (10.6%) are lower than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: RSG's earnings have grown by 16.1% 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 (-22.5%) over the past year, making it difficult to compare to the Commercial Services industry average (-1.3%).


Return on Equity

High ROE: RSG's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


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 ($3.0B).

Long Term Liabilities: RSG's short term assets ($1.5B) do not cover its long term liabilities ($11.4B).


Debt to Equity History and Analysis

Debt Level: RSG's debt to equity ratio (107.3%) is considered high.

Reducing Debt: RSG's debt to equity ratio has increased from 88.7% to 107.3% over the past 5 years.

Debt Coverage: RSG's debt is well covered by operating cash flow (26.7%).

Interest Coverage: RSG's interest payments on its debt are well covered by EBIT (4.7x 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?

1.72%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: RSG's dividend (1.76%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: RSG's dividend (1.76%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.4%), 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 (46.3% 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?

5.4yrs

Average management tenure


CEO

Don Slager (57yo)

9yrs

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 ($USD11.79M) is about average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

5.4yrs

Average Tenure

57yo

Average Age

Experienced Management: RSG's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

55yo

Average Age

Experienced Board: RSG's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Ownership Breakdown

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


Management Team

  • Sue Klug (59yo)

    Chief Marketing Officer & Executive VP

    • Tenure: 3.3yrs
  • Don Slager (57yo)

    CEO & Director

    • Tenure: 9yrs
    • Compensation: US$11.79m
  • Chuck Serianni (57yo)

    Executive VP & CFO

    • Tenure: 5.4yrs
    • Compensation: US$2.82m
  • Brian Goebel (51yo)

    VP & Chief Accounting Officer

    • Tenure: 6.8yrs
  • Catharine Ellingsen (55yo)

    Executive VP

    • Tenure: 3.6yrs
    • Compensation: US$2.16m
  • Jeffrey Hughes (62yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 11.1yrs
    • Compensation: US$2.20m
  • Darcie Brossart

    Senior Vice President of Communications

    • Tenure: 8yrs
  • Jon Ark (44yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$3.52m
  • Tim Stuart

    Chief Operating Officer

    • Tenure: 0.8yrs
  • Nicole Giandinoto

    Senior VP of Investor Relations & Treasurer


    Board Members

    • Don Slager (57yo)

      CEO & Director

      • Tenure: 9yrs
      • Compensation: US$11.79m
    • John Trani (74yo)

      Independent Director

      • Tenure: 11.1yrs
      • Compensation: US$330.03k
    • Michael Larson (60yo)

      Independent Director

      • Tenure: 10.3yrs
      • Compensation: US$350.03k
    • Ramon Rodriguez (73yo)

      Independent Director

      • Tenure: 20.8yrs
      • Compensation: US$350.03k
    • Tom Handley (64yo)

      Independent Director

      • Tenure: 3.5yrs
      • Compensation: US$350.03k
    • Manuel Kadre (53yo)

      Independent Chairman of the Board

      • Tenure: 2.8yrs
      • Compensation: US$495.03k
    • Tomago Collins (47yo)

      Independent Director

      • Tenure: 6.4yrs
      • Compensation: US$350.03k
    • Jennifer Kirk (44yo)

      Independent Director

      • Tenure: 3.5yrs
      • Compensation: US$330.03k
    • Kim Pegula (50yo)

      Independent Director

      • Tenure: 2.5yrs
      • Compensation: US$330.03k
    • Sandra Volpe (52yo)

      Independent Director

      • Tenure: 3.1yrs
      • 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$30.130b
    • Shares outstanding: 319.14m
    • 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
    RPUETLX (Eurotlx)YesCommon StockITEURJul 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 and residential, and energy services customers in the United States and Puerto Rico. The company’s collection services include curbside collection of waste for transport to transfer stations, landfills, or recycling processing centers; supply of waste containers; and renting of compactors. It is also involved in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; temporary waste and recycling collection services; and provision of landfill services. As of December 31, 2018, the company operated through 349 collection operations, 207 transfer stations, 190 active landfills, 91 recycling processing centers, and 11 salt water disposal wells, as well as 7 treatment, recovery, and disposal facilities in 41 states and Puerto Rico. It also operated 75 landfill gas-to-energy and renewable energy projects and had 129 closed landfills. The company was founded in 1996 and is headquartered in Phoenix, Arizona. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 23:57
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/30
    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.