Republic Services' third-quarter revenue was supported by fuel surcharges and a hefty contribution from environmental services, even as yield growth continued to moderate. The firm reported adjusted earnings of $1.94 per share, 1.9% higher year over year.
Republic’s traditional solid waste operations should continue to perform well due to solid execution and strong pricing. The average life of Republic’s landfill portfolio is 56 years, much longer than peers'.
US Ecology and future acquisitions could underperform the firm’s expectations, resulting in value destruction. Republic trades at a rich multiple, and its record margins may face downward pressure as pricing normalizes.
|
Metric
|
RSG
|
WM
|
WCN
|
|---|---|---|---|
Price/Earnings (Normalized) | 33.83 | 29.93 | 163.48 |
Price/Book Value | 6.08 | 9.41 | 5.84 |
Price/Sales | 4.37 | 3.61 | 4.71 |
Price/Cash Flow | 15.71 | 13.84 | 16.64 |
|
Metric
|
RSG
|
WM
|
WCN
|
|---|---|---|---|
Quick Ratio | 0.65 | 0.72 | 0.56 |
Current Ratio | 0.75 | 0.82 | 0.67 |
Interest Coverage | 5.34 | 5.24 | 5.00 |
|
Metric
|
RSG
|
WM
|
WCN
|
|---|---|---|---|
Return on Assets (Normalized) | 6.46% | 7.02% | 6.72% |
Return on Equity (Normalized) | 18.65% | 32.73% | 17.73% |
Return on Invested Capital (Normalized) | 10.55% | 11.96% | 9.74% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Waste Management Inc
WM
| LOCK|?T!Sfv | LOCK|Pb! | $93B | |||
| Waste Connections Inc
WCN
| LOCK|yBfMrNG | LOCK|y? | $46B | |||
| Veolia Environnement SA
VEOEF
| — | LOCK|$qxn | $27B | |||
| Veolia Environnement SA ADR
VEOEY
| LOCK|xZ@$?ym | LOCK|!PS# | $27B | |||
| GFL Environmental Inc
GFL
| — | LOCK|G%?F | $20B | |||
| Clean Harbors Inc
CLH
| LOCK|^tZzw% | LOCK|w>& | $16B | |||
| Casella Waste Systems Inc Class A
CWST
| — | LOCK|X#jz | $6B | |||
| Umicore SA Ordinary Shares
UMICF
| — | LOCK|St | $5B | |||
| Umicore SA ADR
UMICY
| — | LOCK|>P | $5B |
United States