Republic Services (RSG) AI Stock Analysis

• Market Cap: $64.80B
• Dividend Yield: 1.14%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.26
• Revenue Growth: 4.33%
• EPS Growth: 7.59%
• Country: US
• Employees: 42,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 1.90
• Shares Outstanding: 309,563,600
• 10 Day Avg. Volume: 1,163,547
• 30 Day Avg. Volume: 1,594,831
• PEG Ratio: 1.64
• Price to Book (P/B): 5.55
• Price to Sales (P/S): 3.95
• P/FCF Ratio: 30.39
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 5.15
• Enterprise Value/Gross Profit: 16.84
• Enterprise Value/Ebitda: 16.89
• 1Y Price Target: $243.50
• Price Target Upside: 17.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $234.00 ▲(12.74% Upside)

Republic Services' strong financial performance and strategic investments in sustainability and acquisitions are significant strengths. However, technical indicators suggest potential bearish momentum, and the high P/E ratio indicates possible overvaluation. Challenges in the Environmental Solutions segment and declining recycling prices are notable risks. The company's commitment to shareholder returns through dividends is a positive aspect.

Positive Factors

Revenue Growth

Consistent revenue and EBITDA growth indicate strong market demand and effective operational strategies, supporting long-term business expansion.

Sustainability Initiatives

Investments in sustainability and innovation enhance Republic Services' competitive edge and align with regulatory trends, fostering future growth.

Strategic Acquisitions

Strategic acquisitions expand market presence and capabilities, driving long-term growth and strengthening Republic Services' industry position.

Negative Factors

Environmental Solutions Challenges

Challenges in the Environmental Solutions segment could hinder growth, as it faces softness in key markets, impacting overall revenue.

Recycling Commodity Price Decline

Declining recycling prices may pressure margins and revenue, as lower commodity prices reduce profitability in the recycling segment.

Volume Declines in Collection Business

Volume declines in the collection business due to market softness and contract shedding could impact revenue stability and growth prospects.

Republic Services Business Overview & Revenue Model

Company Description

Republic Services, Inc. (RSG) is a leading provider of non-hazardous solid waste collection, transfer, disposal, and recycling services in the United States. Operating in the environmental services sector, the company serves residential, commercial, and industrial customers. Republic Services offers a wide range of products and services, including curbside collection, recycling programs, and landfill operations, aimed at promoting sustainable waste management practices.

How the Company Makes Money

Republic Services generates revenue primarily through its waste collection and disposal services. The company charges customers for regular waste pickup, recycling services, and landfill fees. Key revenue streams include residential collection (which encompasses households), commercial collection (serving businesses), and industrial services (providing waste management for larger operations). Additionally, the company benefits from recycling services, where it processes recyclable materials and sells them to manufacturers. Significant partnerships with municipalities and contracts with businesses also contribute to a stable revenue base. Factors such as regulatory requirements for waste disposal and the increasing emphasis on sustainability further enhance Republic Services' earnings potential.

Republic Services Financial Statement Overview

Summary

Republic Services demonstrates a commendable financial standing with strong growth in revenue and profitability, efficient cost management, and robust cash flow generation. The balance sheet is characterized by low leverage and high return on equity, providing financial stability. These factors contribute to an overall positive financial trajectory, although attention should be given to maintaining this balance as the company continues to grow.

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	16.50B	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	5.03B	4.77B	4.32B	3.66B	3.15B	2.65B
Net Income	2.11B	2.04B	1.73B	1.49B	1.29B	967.20M
Balance Sheet
Total Assets	33.79B	32.40B	31.41B	29.05B	24.95B	23.43B
Cash, Cash Equivalents and Short-Term Investments	84.00M	74.00M	140.00M	143.40M	29.00M	38.20M
Total Debt	13.51B	12.96B	13.07B	12.08B	9.83B	9.17B
Total Liabilities	21.92B	21.00B	20.87B	19.37B	15.98B	14.95B
Stockholders Equity	11.87B	11.40B	10.54B	9.69B	8.98B	8.48B
Cash Flow
Free Cash Flow	2.53B	2.08B	1.99B	1.74B	1.47B	1.28B
Operating Cash Flow	4.34B	3.94B	3.62B	3.19B	2.79B	2.47B
Investing Cash Flow	-3.38B	-2.56B	-3.67B	-4.42B	-2.47B	-1.92B
Financing Cash Flow	-932.90M	-1.40B	61.90M	1.34B	-329.20M	-612.00M

Republic Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 207.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 207.56 is below the 20-day moving average (MA) of 213.42, below the 50-day MA of 215.70, and below the 200-day MA of 233.00, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 38.34 is Neutral, neither overbought nor oversold. The STOCH value of 2.77 is Positive, 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	$12.68B	33.13	14.64%	―	2.85%	-6.27%
WM	76 Outperform	$84.32B	32.98	29.31%	1.58%	15.88%	-3.11%
RSG	72 Outperform	$64.80B	31.11	18.24%	1.14%	4.33%	7.59%
MEG	69 Neutral	$936.45M	―	-4.17%	―	22.77%	44.73%
CWST	69 Neutral	$6.30B	402.75	0.98%	―	20.54%	106.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NVRI	56 Neutral	$1.46B	―	-38.53%	―	-2.91%	-67.18%

Republic Services Corporate Events

Republic Services Reports Q3 2025 Financial Results

Republic Services, Inc. reported its third-quarter 2025 financial results, highlighting a net income of $550 million and adjusted earnings per share of $1.90. Despite cyclical volume pressures, the company achieved a revenue growth of 3.3% and an 80-basis-point increase in adjusted EBITDA margin, driven by effective pricing strategies and operational execution. Year-to-date, Republic Services invested over $1 billion in acquisitions and returned $1.13 billion to shareholders. The company expects its full-year 2025 revenue to be near the low end of its guidance range.

Republic Services Declares Quarterly Dividend Announcement

On October 22, 2025, Republic Services, Inc. announced that its Board of Directors declared a regular quarterly dividend of $0.625 per share. This dividend, set for shareholders of record on January 2, 2026, will be paid on January 15, 2026, reflecting the company’s ongoing commitment to returning value to its shareholders.