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Republic Services (RSG) Stock Analysis

Here is a fundamental analysis of Republic Services (RSG), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

RSG
GSPC
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Republic Services (RSG) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Republic Services (RSG) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Republic Services (RSG) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RSGIndustry group median
1-Year Return-15.74%-15.17%

Risk

Drawdown

RSG
GSPC
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Republic Services (RSG) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Republic Services (RSG) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RSGIndustry group median
1-Year Volatility18.64%38.00%
Beta0.400.84

Company Profile

Company profile fields for Republic Services (RSG)
Profile ItemRSG
NameRepublic Services, Inc.
Country/RegionUnited States
GICS SectorIndustrials
GICS Industry GroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
GICS Sub-IndustryEnvironmental & Facilities Services
Market Capitalization64.58 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJuly 1, 1998
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Republic Services (RSG) trades at P/E ratio of 30.12, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

RSG

Commercial & Professional Services industry group

30.12

Group distribution
Max
67.87
Q3
37.72
RSG
30.12
Median
21.61
Q1
14.71
Min
4.85
Largest peers
WCN
37.98
CTAS
37.19
WM
31.76
RSG
30.12
RELX
22.64
PAYX
22.21
ADP
21.10
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Where Republic Services (RSG) stands on P/E ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Republic Services (RSG) trades at 3.87 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

RSG

Commercial & Professional Services industry group

3.87

Group distribution
Max
6.40
RSG
3.87
Q3
3.14
Median
1.30
Q1
0.66
Min
0.09
Largest peers
PAYX
9.09
CTAS
6.40
RELX
6.19
ADP
4.19
WCN
4.13
RSG
3.87
WM
3.47
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Where Republic Services (RSG) stands on P/S ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Republic Services (RSG) trades at 5.40 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

RSG

Commercial & Professional Services industry group

5.40

Group distribution
Max
8.98
Q3
5.88
RSG
5.40
Median
2.95
Q1
1.89
Min
-2.68
Largest peers
RELX
76.95
CTAS
14.73
ADP
14.27
PAYX
8.98
WM
8.81
RSG
5.40
WCN
4.84
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Where Republic Services (RSG) stands on P/B ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Republic Services (RSG) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RSGIndustry group median
Price-to-Earnings Ratio (TTM)30.1221.61
Price-to-Sales Ratio (TTM)3.871.30
Price-to-Book Ratio (MRQ)5.402.95
Free Cash Flow Yield2.80%5.32%

Profitability

Return on Equity (TTM)

Republic Services (RSG) posts ROE of 18.35%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

RSG

Commercial & Professional Services industry group

18.35%

Group distribution
Max
53.04%
Q3
25.65%
RSG
18.35%
Median
13.99%
Q1
2.65%
Min
-26.88%
Largest peers
ADP
71.21%
RELX
70.51%
CTAS
41.30%
WM
29.94%
RSG
18.35%
WCN
13.12%
PAYX
--
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Where Republic Services (RSG) stands on ROE within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Republic Services (RSG) keeps 12.99% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

RSG

Commercial & Professional Services industry group

12.99%

Group distribution
Max
26.63%
RSG
12.99%
Q3
11.56%
Median
6.26%
Q1
1.18%
Min
-13.34%
Largest peers
PAYX
26.63%
RELX
21.53%
ADP
20.12%
CTAS
17.57%
RSG
12.99%
WM
10.99%
WCN
10.97%
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Where Republic Services (RSG) stands on net margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Republic Services (RSG) turns 20.20% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

RSG

Commercial & Professional Services industry group

20.20%

Group distribution
Max
37.53%
RSG
20.20%
Q3
17.67%
Median
9.37%
Q1
3.13%
Min
-4.52%
Largest peers
PAYX
44.38%
RELX
31.41%
ADP
30.18%
CTAS
23.22%
RSG
20.20%
WCN
18.75%
WM
17.52%
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Where Republic Services (RSG) stands on operating margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Republic Services (RSG) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RSGIndustry group median
Return on Equity (TTM)18.35%13.99%
Return on Assets (TTM)6.18%5.24%
Net Profit Margin (TTM)12.99%6.26%
Operating Profit Margin (TTM)20.20%9.37%
Gross Profit Margin (TTM)43.05%36.48%

Financial Strength

Current Ratio (MRQ)

Republic Services (RSG) has current ratio of 0.67, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

RSG

Commercial & Professional Services industry group

0.67

Group distribution
Max
3.17
Q3
2.01
Median
1.51
Q1
1.13
RSG
0.67
Min
0.45
Largest peers
CTAS
1.98
PAYX
1.15
ADP
1.04
WM
0.93
WCN
0.69
RSG
0.67
RELX
0.49
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Where Republic Services (RSG) stands on current ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Republic Services (RSG) has debt-to-equity ratio of 1.18, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

RSG

Commercial & Professional Services industry group

1.18

Group distribution
Max
2.61
Q3
1.39
RSG
1.18
Median
0.94
Q1
0.45
Min
0.01
Largest peers
RELX
3.04
WM
2.28
PAYX
1.25
RSG
1.18
WCN
1.17
ADP
0.69
CTAS
0.61
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Where Republic Services (RSG) stands on debt-to-equity ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Republic Services (RSG) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RSGIndustry group median
Current Ratio (MRQ)0.671.51
Debt-to-Equity Ratio (MRQ)1.180.94
Net Debt / EBITDA2.692.67

Dividends

Dividend Yield (TTM)

Republic Services (RSG) has dividend yield of 1.19%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

RSG

Commercial & Professional Services industry group

1.19%

Group distribution
Max
5.49%
Q3
2.30%
RSG
1.19%
Median
0.97%
Q1
0.00%
Min
0.00%
Largest peers
PAYX
4.73%
ADP
3.01%
RELX
2.73%
WM
1.61%
RSG
1.19%
CTAS
1.02%
WCN
0.90%
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Where Republic Services (RSG) stands on dividend yield within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Republic Services (RSG) has payout ratio of 35.22%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

RSG

Commercial & Professional Services industry group

35.22%

Group distribution
Max
79.70%
Q3
36.60%
RSG
35.22%
Median
16.11%
Q1
0.00%
Min
0.00%
Largest peers
PAYX
95.36%
ADP
60.45%
RELX
57.42%
WM
49.49%
CTAS
36.71%
RSG
35.22%
WCN
32.44%
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Where Republic Services (RSG) stands on payout ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Republic Services (RSG) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: RSGIndustry group median
Dividend Yield (TTM)1.19%0.97%
Dividend Payout Ratio (TTM)35.22%16.11%