Republic Services (RSG) AI Stock Analysis

• Market Cap: $74.28B
• Dividend Yield: 0.98%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 35.8
• Beta (1Y): 0.35
• Revenue Growth: 6.13%
• EPS Growth: 16.45%
• Country: US
• Employees: 42,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Waste Management
• EPS (TTM): 1.58
• Shares Outstanding: 312,497,000
• 10 Day Avg. Volume: 1,386,425
• 30 Day Avg. Volume: 1,285,088
• PEG Ratio: 17.28
• Price to Book (P/B): 6.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.00
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 15.40
• Enterprise Value/Ebitda: 4.79
• 1Y Price Target: $264.94
• Price Target Upside: 9.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 70 Outperform
• Price Target: $261.00 ▲(8.24%Upside)

Republic Services presents a robust financial profile with strong revenue growth and efficient operations, significantly contributing to the overall score. The earnings call further supports the company's positive outlook with strategic growth initiatives. However, bearish technical indicators and a high valuation relative to peers weigh down the score.

Positive Factors

Acquisitions

RSG's active involvement in M&A within recycling, waste, and Environmental Solutions is seen as an attractive opportunity for upside growth.

Cost Savings

The company expects to save $20-25 million annually through the MPower system by enhancing warranty recovery and technician efficiency.

Digital Investments

Digital investments are driving internal efficiencies, with platforms like the RISE dispatch and in-cab technology contributing to significant productivity gains.

Negative Factors

Economic Environment

RSG is positioned to benefit from a rebounding industrial/manufacturing backdrop and ongoing margin expansion opportunities.

Market Performance

Despite the weak start to the year, Republic did not back away from the ES annual margin improvement target of 75-100 bps.

Valuation Concerns

The stock has materially outperformed peers YTD (+21% vs. +11%) and valuation is at a 20-yr high.

Republic Services Business Overview & Revenue Model

Company Description

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. Its collection services include curbside collection of material for transport to transfer stations, landfills, or recycling processing centers; supply of recycling and waste containers; and renting of compactors. In addition, the company engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill and transfer services. Further, it offers disposal of non-hazardous solid and liquid material and in-plant services, such as transportation and logistics. It serves small-container, large-container, and residential customers. As of December 31, 2021, the company operated through 356 collection operations, 239 transfer stations, 198 active landfills, 71 recycling processing centers, 6 saltwater disposal wells, and 7 deep injection wells, as well as 3 treatment, recovery, and disposal facilities in 41 states. It also operated 77 landfill gas-to-energy and renewable energy projects and had 124 closed landfills. The company was incorporated in 1996 and is based in Phoenix, Arizona.

How the Company Makes Money

Republic Services generates revenue primarily through its solid waste collection and disposal services. The company charges fees for collecting and transporting waste from residential, commercial, and industrial customers to landfills or recycling facilities. Republic Services also earns money through landfill operations by charging tipping fees for waste disposal. Additionally, the company generates income from its recycling services, where it processes and sells recycled materials. Another revenue stream comes from energy services, where Republic Services captures landfill gas and converts it into energy, which is then sold to third parties. Key factors influencing its earnings include long-term contracts with municipalities and businesses, strategic acquisitions, and investments in technology to enhance operational efficiency.

Republic Services Financial Statement Overview

Summary

Republic Services presents a robust financial profile with strong revenue growth, effective cost management, and healthy cash flow generation. The company's low leverage and high return on equity suggest prudent financial management and a solid foundation for future growth, although there is room to improve liquidity.

Income Statement

Republic Services demonstrates strong income statement performance with consistent revenue growth and robust profit margins. For the TTM period ending March 2025, the company achieved a Gross Profit Margin of 50.8% and a Net Profit Margin of 12.9%. Revenue growth from the previous year was 8.2%, indicating a positive growth trajectory. The EBIT Margin was 20.2% and the EBITDA Margin was 28.3%, showcasing effective cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 0.036 for the TTM period, indicating low leverage. The Return on Equity (ROE) was 17.9%, demonstrating effective use of equity to generate profits. The Equity Ratio stood at 35.2%, showing a healthy proportion of equity financing. Although the company maintains a conservative leverage profile, the relatively low cash position may limit immediate liquidity.

Cash Flow

Cash flow analysis reveals a solid performance with a Free Cash Flow Growth Rate of 12.9% over the previous year, reflecting strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio was 1.99, indicating efficient conversion of income to cash. The Free Cash Flow to Net Income Ratio of 1.13 also supports the company's ability to generate free cash flow relative to its net income, underpinning financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.18B	16.03B	14.96B	13.51B	11.29B	10.15B
Gross Profit	5.91B	6.68B	6.02B	5.31B	4.56B	4.05B
EBITDA	4.89B	4.77B	4.32B	3.66B	3.38B	3.00B
Net Income	2.08B	2.04B	1.73B	1.49B	1.29B	967.20M
Balance Sheet
Total Assets	33.10B	32.40B	31.41B	29.05B	24.95B	23.43B
Cash, Cash Equivalents and Short-Term Investments	83.00M	74.00M	140.00M	143.40M	29.00M	38.20M
Total Debt	13.53B	12.96B	13.07B	11.78B	9.55B	8.93B
Total Liabilities	21.44B	21.00B	20.87B	19.36B	15.98B	14.95B
Stockholders Equity	11.66B	11.40B	10.54B	9.69B	8.98B	8.48B
Cash Flow
Free Cash Flow	2.35B	2.08B	1.99B	1.74B	1.47B	1.28B
Operating Cash Flow	4.15B	3.94B	3.62B	3.19B	2.79B	2.47B
Investing Cash Flow	-3.17B	-2.56B	-3.67B	-4.42B	-2.47B	-1.92B
Financing Cash Flow	-912.80M	-1.40B	61.90M	1.34B	-329.20M	-612.00M

Republic Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 241.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSG, the sentiment is Negative. The current price of 241.14 is below the 20-day moving average (MA) of 247.13, below the 50-day MA of 248.09, and above the 200-day MA of 223.73, indicating a neutral trend. The MACD of -1.99 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 21.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RSG.

Republic Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLH	77 Outperform	$12.34B	31.91	16.02%	―	8.52%	4.51%
WM	72 Outperform	$91.39B	34.25	34.01%	1.48%	10.77%	8.38%
CWST	72 Outperform	$7.20B	517.10	1.00%	―	21.63%	-30.27%
RSG	70 Outperform	$74.28B	35.84	18.54%	0.98%	6.13%	16.45%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%

Republic Services Corporate Events

Republic Services Holds Annual Shareholders Meeting

On May 19, 2025, Republic Services held its Annual Meeting of Shareholders where the election of board nominees, executive compensation, and the appointment of Ernst & Young LLP as the independent auditor were approved. Despite a statute in Arizona potentially affecting voting rights for large shareholders, the outcomes of the votes were not impacted, maintaining the company’s operational and governance stability.

The most recent analyst rating on (RSG) stock is a Hold with a $208.00 price target. To see the full list of analyst forecasts on Republic Services stock, see the RSG Stock Forecast page.