The Company in a Nutshell
- Waste services are naturally growing along with the U.S. population.
- RSG seems to suffer from the same problem as Waste Management: great company, not-so-great price.
- As the 2nd largest player in its industry, RSG enjoys economy of scale.
- We do not cover Republic Services at the moment.
Date Reviewed | N/A |
Company Name | Republic Services Inc |
Symbol | RSG |
Sector | Industrials |
Industry | Waste Management |
Beta | 0.711 |
PRO Rating | 4 |
Dividend Safety | 4 |
Business Model
Republic Services, Inc. is a provider of environmental services in the United States. Through its subsidiaries, the Company provides customers with a set of products and services, including recycling, solid waste, special waste, hazardous waste and field services. The Company’s segments include Group 1, Group 2 and Group 3. Group 1 is its recycling and waste business operating primarily in geographic areas located in the western United States. Group 2 is its recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States and Canada. Group 3 is its environmental solutions business operating in geographic areas located across the United States and Canada. It operates through 364 collection operations, 246 transfer stations, 74 recycling centers, 207 active landfills, three treatment, recovery and disposal facilities, and 22 treatment, storage and disposal facilities.
Current price | 200.98 |
ROE | 17.10 % |
ROIC | 8.55 % |
Shareholder Yield | 0.20 % |
5-Yr Total Return | 150.15 % |
1-Yr Total Return | 35.15 % |
Next Earnings Date | 10-24-24 |
Latest Quarter Information
What the CEO said:
We continue to prioritize our differentiating capabilities – Customer Zeal, Digital and Sustainability – to help our customers achieve their operational and sustainability goals, and drive significant value for our stakeholders. During the second quarter, we delivered double-digit growth in EBITDA and EPS, and expanded EBITDA margin by 110 basis points. Pricing in excess of cost inflation and solid operational execution underpinned strong results across the business. As a result of our performance and outlook for the remainder of the year, we are raising our full-year financial guidance.
What we say:
08-28-2024, RSG's Q2 revenue growth of 8.6% included 5.6% of organic growth and 3% of growth from acquisitions. RSG's average recycled commodity price per ton sold during Q2 was $173, an increase of $54 per ton over the prior year. Q2 core price contributed an increase of 6.8% in revenues. YTD, the company generated $1.91B in cash from operating activities and an adjusted FCF of $1.15B. YTD, RSG invested $67.6M in acquisitions and returned $504.4M cash to shareholders through dividends of $336.8M and repurchases of $167.6M. For FY24, RSG expects revenue of $16.075B-$16.125B, AEBITDA of $4.900B-$4.925B, and FCF of $2.150B-$2.170B.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 8.30 % |
5-Yr EPS Growth | 11.60 % |
5-Yr Div Growth | 7.40 % |
Potential Risks
Debt/Equity | 1.20 |
Financial Debt to EBITDA (TTM) | 2.80 |
Current Ratio (Quarterly) | 0.55 |
Credit Score | 71 |
Dividend Growth Perspective
Dividend ($) | 2.32 |
Dividend Yield Fwd | 1.15 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 1.50 % |
Payout Ratio (%) | 37.55 |
Cash Payout Ratio (%) | 34.35 |
DGR 1-Yr | 8.10 |
DGR 3-Yr | 7.45 |
DGR 5-Yr | 7.40 |
DGR Streak | 20 |
Chowder Score | 8.60 |
Next DVD PMT | 10-15-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 63 B |
PE Ratio | 33.65 |
Fwd PE | 30.15 |
Price to Book Ratio | 5.75 |
DDM Valuation | N/A |
Average 5-Yr PE | 30.72 |
Value Score | 27 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.