Republic Services (RSG) AI Stock Analysis

• Market Cap: $71.73B
• Dividend Yield: 1.01%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.38
• Revenue Growth: 5.13%
• EPS Growth: 13.29%
• Country: US
• Employees: 42,000
• Sector: Industrials
• Sector Strength: 73
• Industry: Waste Management
• EPS (TTM): 1.77
• Shares Outstanding: 312,215,820
• 10 Day Avg. Volume: 955,561
• 30 Day Avg. Volume: 1,228,202
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 5.52
• Enterprise Value/Gross Profit: 17.90
• Enterprise Value/Ebitda: 18.11
• 1Y Price Target: $264.09
• Price Target Upside: 14.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $262.00 ▲(14.05% Upside)

Republic Services' strong financial performance and positive earnings call insights are the primary drivers of its stock score. Technical analysis and valuation present some concerns, with the stock appearing relatively expensive and showing mixed technical signals. Despite these challenges, the company's solid fundamentals and strategic initiatives support a favorable outlook.

Positive Factors

Financial Performance

RSG has outperformed most peers over the past year with solid execution.

Mergers and Acquisitions

M&A remains active and with financial leverage at the low end of its targeted range, RSG has significant capacity to self-fund deals and/or return capital to shareholders.

Technological Advancements

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

Cyclical pressure on construction and manufacturing solid waste activity caused volumes to decline more than management had expected.

Market Challenges

Volume benefits from recent storms and wildfires are abating and may no longer be able to mask underlying weakness in economically sensitive end markets.

Revenue Decline

Soft demand poses a near-term challenge for Environmental Solutions, with revenues decreasing due to sluggish manufacturing activity and lower event-driven volumes.

Republic Services Business Overview & Revenue Model

Company Description

Republic Services, Inc. (RSG) is a leading provider of waste management services in the United States, offering comprehensive solutions in solid waste collection, recycling, and disposal. The company operates through a vast network of collection, transfer, recycling, and disposal facilities, catering to residential, commercial, and industrial clients across various regions. Republic Services is committed to sustainability and environmental stewardship, providing innovative waste management solutions that help communities reduce their environmental impact and promote recycling and resource recovery.

How the Company Makes Money

Republic Services generates revenue primarily through the collection and disposal of solid waste. The company earns money from residential, commercial, and industrial waste management services, which include curbside collection, recycling programs, and landfill operations. Key revenue streams include service fees charged to customers for waste pickup and disposal, as well as tipping fees collected at landfills for accepting waste. Additionally, Republic Services has partnerships with municipalities and other governmental entities to provide waste management services, which can include long-term contracts that ensure consistent revenue. The company also focuses on expanding its recycling and composting operations, which can contribute to revenue growth by tapping into the increasing demand for sustainable waste solutions.

Republic Services Financial Statement Overview

Summary

Republic Services displays commendable financial performance with strong revenue and profit growth. The company has robust profitability metrics, including a net profit margin of 13% and a strong cash flow generation. The balance sheet is stable with low leverage, but potential risks exist if debt increases without equity growth.

Income Statement

Republic Services shows strong financial performance with consistent revenue growth. The gross profit margin for TTM is approximately 36.5%, indicating efficient cost management. The net profit margin has improved to roughly 13% in TTM, demonstrating enhanced profitability. The EBIT and EBITDA margins have also shown strength at around 20.2% and 28.6%, respectively. Overall, the company displays robust profitability and operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of approximately 0.03 in TTM, indicating low leverage. The return on equity is strong at about 17.6%, showcasing effective use of equity. The equity ratio is around 36.1%, which shows a healthy balance between equity and total assets. While leverage is low, future risks could arise if debt levels rise without proportional increases in equity.

Cash Flow

The cash flow analysis reveals a positive outlook with a free cash flow growth rate of 13.2% in TTM. The operating cash flow to net income ratio is around 1.96, indicating strong cash generation relative to net income. Additionally, the free cash flow to net income ratio stands at approximately 1.11, which suggests effective cash management. These figures reflect solid cash flow stability and growth potential.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.37B	16.03B	14.96B	13.51B	11.29B	10.15B
Gross Profit	5.05B	4.90B	4.42B	3.87B	3.29B	4.05B
EBITDA	4.99B	4.77B	4.32B	3.66B	3.15B	2.65B
Net Income	2.12B	2.04B	1.73B	1.49B	1.29B	967.20M
Balance Sheet
Total Assets	33.40B	32.40B	31.41B	29.05B	24.95B	23.43B
Cash, Cash Equivalents and Short-Term Investments	122.00M	74.00M	140.00M	143.40M	29.00M	38.20M
Total Debt	13.22B	12.96B	13.07B	12.08B	9.83B	9.17B
Total Liabilities	21.34B	21.00B	20.87B	19.37B	15.98B	14.95B
Stockholders Equity	12.05B	11.40B	10.54B	9.69B	8.98B	8.48B
Cash Flow
Free Cash Flow	2.36B	2.08B	1.99B	1.74B	1.47B	1.28B
Operating Cash Flow	4.16B	3.94B	3.62B	3.19B	2.79B	2.47B
Investing Cash Flow	-3.26B	-2.56B	-3.67B	-4.42B	-2.47B	-1.92B
Financing Cash Flow	-1.22B	-1.40B	61.90M	1.34B	-329.20M	-612.00M

Republic Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 229.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 229.73 is below the 20-day moving average (MA) of 233.73, below the 50-day MA of 237.50, and below the 200-day MA of 231.41, indicating a bearish trend. The MACD of -1.50 indicates Negative momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 29.01 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	78 Outperform	$12.67B	33.18	14.93%	―	5.49%	-1.66%
RSG	73 Outperform	$71.73B	33.96	18.41%	1.01%	5.13%	13.29%
MEG	70 Outperform	$1.07B	―	-7.61%	―	17.78%	2.57%
WM	69 Neutral	$88.65B	32.65	32.67%	1.43%	14.18%	7.02%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
CWST	57 Neutral	$6.01B	523.73	0.85%	―	20.35%	-45.38%
NVRI	56 Neutral	$948.42M	―	-35.66%	―	-0.83%	-61.90%

Republic Services Corporate Events

Republic Services Reports Strong Q2 2025 Financial Results

Republic Services, Inc. reported its second-quarter 2025 financial results, showing a net income of $550 million, or $1.75 per diluted share, compared to $512 million, or $1.62 per diluted share, in the same period of 2024. The company achieved a 4.6% total revenue growth, with 3.1% from organic growth and 1.5% from acquisitions. Adjusted EBITDA increased by 100 basis points, and the company invested nearly $900 million in acquisitions in the first half of the year. Republic Services updated its full-year 2025 financial guidance, expecting revenue between $16.675 billion and $16.750 billion, and adjusted EBITDA between $5.275 billion and $5.325 billion. The company also increased its quarterly dividend by approximately 8%, reflecting its commitment to returning cash to shareholders.

Republic Services Increases Quarterly Dividend Again

On July 23, 2025, Republic Services, Inc. announced a 4.5 cent increase in its regular quarterly dividend to $0.625 per share, marking the 22nd consecutive year of dividend increases. This decision underscores the company’s commitment to returning cash to shareholders and reflects its strong financial performance and strategic positioning in the environmental services industry.