Republic Services, Inc. Fundamental Analysis (NYSE: RSG)
Republic Services, Inc. (NYSE: RSG) shows moderate financial fundamentals with a PE ratio of 30.47, profit margin of 12.94%, and ROE of 18.27%. The company generates $16.9B in annual revenue with moderate year-over-year growth of 3.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RSG's fundamental strength across five key dimensions:
Efficiency Score
WeakRSG struggles to generate sufficient returns from assets.
Valuation Score
WeakRSG trades at a premium to fair value.
Growth Score
WeakRSG faces weak or negative growth trends.
Financial Health Score
WeakRSG carries high financial risk with limited liquidity.
Profitability Score
ModerateRSG maintains healthy but balanced margins.
Key Financial Metrics
Is RSG Expensive or Cheap?
P/E Ratio
RSG trades at 30.47 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RSG's PEG of 7.11 indicates potential overvaluation.
Price to Book
The market values Republic Services, Inc. at 5.50 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.28 times EBITDA. This is generally considered low.
How Well Does RSG Make Money?
Net Profit Margin
For every $100 in sales, Republic Services, Inc. keeps $12.94 as profit after all expenses.
Operating Margin
Core operations generate 20.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.27 in profit for every $100 of shareholder equity.
ROA
Republic Services, Inc. generates $6.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Republic Services, Inc. generates strong operating cash flow of $5.77B, reflecting robust business health.
Free Cash Flow
Republic Services, Inc. generates strong free cash flow of $3.41B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.07 in free cash annually.
FCF Yield
RSG converts 5.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How RSG Stacks Against Its Sector Peers
| Metric | RSG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.47 | 30.97 | Neutral |
| ROE | 18.27% | 1108.00% | Weak |
| Net Margin | 12.94% | -21241.00% (disorted) | Strong |
| Debt/Equity | 1.17 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.64 | 21.73 | Weak Liquidity |
| ROA | 6.21% | -1325740.00% (disorted) | Weak |
RSG outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Republic Services, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
67.27%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
126.39%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
77.93%
Industry Style: Cyclical, Value, Infrastructure
High Growth