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Republic Services Inc RSG

Morningstar Rating
$185.95 +1.43 (0.78%)
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Company Report

Republic Services Earnings: Strong Q4 Results; Solid Growth and Margin Expansion Targeted in 2024

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.

Price vs Fair Value

RSG is trading at a 30% premium.
Price
$185.95
Fair Value
$991.00
Uncertainty
Low
1-Star Price
$379.79
5-Star Price
$575.40
Economic Moat
Xwnm
Capital Allocation
Rrvxtlpd

Bulls Say, Bears Say

Bulls

Republic’s traditional solid waste operations should continue to perform well due to solid execution and strong pricing.

Bears

The acquisition of US Ecology and future acquisitions could underperform Republic Services' business case, resulting in shareholder destruction.

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News

Trading Information

Previous Close Price
$184.52
Day Range
$184.49192.57
52-Week Range
$126.58192.57
Bid/Ask
$184.55 / $192.44
Market Cap
$58.51 Bil
Volume/Avg
2.1 Mil / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
34.95
Price/Sales
3.94
Dividend Yield (Trailing)
1.11%
Dividend Yield (Forward)
1.15%
Total Yield
1.56%

Company Profile

Republic Services is the second-largest integrated provider of traditional solid waste services in the United States, operating roughly 206 active landfills and 233 transfer stations. The company serves residential, commercial, and industrial end markets. It also runs a sizable recycling operation in North America.
Sector
Industrials
Industry
Waste Management
Stock Style Box
Large Core
Total Number of Employees
40,000

Competitors

Valuation

Metric
RSG
SRCL
WCN
Price/Earnings (Normalized)
34.9528.8239.90
Price/Book Value
5.552.085.60
Price/Sales
3.941.925.38
Price/Cash Flow
16.3915.8920.41
Price/Earnings
RSG
SRCL
WCN

Financial Strength

Metric
RSG
SRCL
WCN
Quick Ratio
0.510.760.57
Current Ratio
0.580.900.68
Interest Coverage
5.221.274.55
Quick Ratio
RSG
SRCL
WCN

Profitability

Metric
RSG
SRCL
WCN
Return on Assets (Normalized)
5.76%3.41%6.19%
Return on Equity (Normalized)
16.99%7.44%14.58%
Return on Invested Capital (Normalized)
9.37%5.60%8.89%
Return on Assets
RSG
SRCL
WCN
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Waste Management Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
WM
Waste Management IncXhc$83.2 Bil
WCN
Waste Connections IncDpx$43.1 Bil
VEOEF
Veolia Environnement SAGfpt$23.2 Bil
VEOEY
Veolia Environnement SA ADRNtcbx$23.2 Bil
GFL
GFL Environmental IncZxfnds$13.2 Bil
CLH
Clean Harbors IncGndczc$9.8 Bil
FMOCF
Fomento de Construcciones y Contratas SASzyd$6.1 Bil
CWST
Casella Waste Systems Inc Class ALtkrkr$5.2 Bil
SRCL
Stericycle IncWfmcbm$5.2 Bil

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