Company Reports

Wide-moat-rated Republic Services reported strong first-quarter results, featuring elevated pricing gains (core price increased 7%) and robust adjusted EBITDA margin expansion (up 120 basis points to 30.2%). Republic Services’ strong profit margins have been supported by its pricing power, a function of its wide economic moat, and management’s willingness to embrace technology to reduce operating costs. For example, the company’s RISE digital operating platform has improved route density, which in our view, is a source of cost advantage for the firm. Republic Services has also invested in an asset management system that should lower maintenance costs. In fact, management expects $20 million of costs savings by 2026. Finally, the company is using camera technology to ensure proper container volumes and reduce recycling contamination. Management thinks this initiative will result in $60 million of additional revenue for the firm.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.

Wide-moat-rated Republic Services closed out its fiscal 2023 with a strong financial performance during the fourth quarter, surpassing both our and FactSet consensus expectations for revenue growth and adjusted EPS. Fourth-quarter revenue increased nearly 9% year over year, driven mostly by a 6-percentage-point gain in total price and nearly 3-percentage-points growth from acquisitions. Adjusted EBITDA margin expanded nicely—up 260 basis points year over year to 29.9%, supported by lower transportation and fuel costs and solid operating leverage across other expense line items. Adjusted EPS increased nearly 25% year over year to $1.41.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.

Wide-moat-rated Republic Services reported third-quarter operating results in line with our estimates, as sales and operating income were within 1% of our projections. Management increased full-year adjusted EPS guidance by 2% to $5.48 per share (midpoint) due to a lower-than-anticipated tax rate while leaving guidance unchanged for sales, adjusted EBITDA, and free cash flow. We've increased our fair value estimate to $129 per share from $127 due to the time value of money.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.

Wide-moat-rated Republic Services reported strong second-quarter results that exceeded our expectations for revenue growth and adjusted EBITDA margin. We've increased our fair value estimate by approximately 6% to $127 per share, primarily due to our more optimistic profit margin outlook and the time value of money.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.

Following Republic Services’ first-quarter earnings release, we’ve increased our fair value estimate by approximately 1% to $120 per share. Our fair value increase was mostly driven by the time value of money since our last update.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.

Wide-moat-rated Republic Services reported strong fourth-quarter results that moderately outpaced our revenue and EPS expectations. Total fourth-quarter revenue increased 19.5% year over year, mostly driven by acquisitions (11.2%) and increased pricing and volume (8.4% and 1.5%, respectively). Republic Services’ pricing power remains robust and has reached record levels.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.

Wide-moat Republic Services posted strong third-quarter results driven by robust pricing and resilient collection volumes. Revenue growth of 23% year over year (10% organic) and adjusted EPS of $1.34 per share modestly outpaced our expectations for the quarter. Management reaffirmed its full-year guidance for adjusted free cash flow (roughly $1.7 billion) and EPS ($4.77-$4.80). We expect RSG to modestly outpace its EPS target and be in line with its free cash flow target. We expect to raise our $106 per-share fair value estimate by a low-single-digit percentage, primarily due to the time value of money.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.

Wide-moat Republic Services’ strong second-quarter results featured record pricing, robust volume gains, and inorganic growth from the US Ecology acquisition. Management gave an upbeat outlook for the rest of the year and raised its guidance for adjusted earnings per share and free cash flow by 4%. We’ve raised our fair value estimate about 5% to $106 per share to reflect a more optimistic near-term forecast (primarily due to stronger pricing) and the time value of money since our prior update.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.

Wide-moat-rated Republic Services reported strong first-quarter 2022 results that featured record pricing and solid volume gains. Republic also completed its $2.2 billion acquisition of environmental waste specialist US Ecology. We've raised our fair value estimate 1% to $101 per share, primarily due to the time value of money since our last update.

Following right behind industry leader Waste Management, Republic Services enjoys dominance in landfill ownership. As a fully integrated waste hauler, it leverages a vast network of collection routes and transfer stations, which bestow significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its landfills. Outside of the large public providers that make up 40% of industry revenue, size falls off quickly and the market becomes fragmented.