Republic Services Inc
RSG: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| KGw | LOCK|kS | LOCK|Cm^?X@v |
Republic's Core Pricing Should Remain Strong as Volume Headwinds Persist; Increasing FVE to $190
Business Strategy and Outlook
Following right behind industry leader WM, Republic Services dominates landfill ownership. As a fully integrated waste hauler, the firm leverages a vast network of collection routes and transfer stations, which bestows significant control over the waste stream and strong internalization rates, funneling waste from commercial, industrial, and residential end markets into its highly valuable landfill assets. Outside the large public waste haulers, which account for roughly half of industry revenue, size falls off quickly, and the market becomes fragmented.
