Republic Services, Inc. (RSG) stock analysis

P/E above its 5-year median

Republic Services's P/E of 35.0 is above its own 5-year median of 32.5.

P/E above the industry

Republic Services's P/E of 35.0 is above the Electric, Gas, and Sanitary Services median of 20.2.

EV/EBITDA above its 5-year median

Republic Services's EV/EBITDA of 17.0 is above its 5-year median of 15.9.

P/B above the industry

Republic Services's price-to-book of 6.30 is above the Electric, Gas, and Sanitary Services median of 4.04.

Trading above fair value

The share price of $253.00 is above our fair value estimate of $184.44.

Margin of safety under 20%

The price is 37.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 6.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 13.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 5.7% over the last twelve months, against a 5-year average of 17.2% a year.

Growing slower than the industry

Revenue grew 4.1% over the last twelve months; the Electric, Gas, and Sanitary Services median is 5.5%.

Guidance raised

Republic Services raised its Full-Year 2026 Revenue outlook on Aug 6, 2026.

Gross margin slipping

Gross margin was 49.3% over the last twelve months, against 49.6% a year earlier.

Return on equity over 15%

Return on equity was 18.5% over the last twelve months and averaged 17.0% over five years.

Return on capital over 10%

Return on invested capital was 11.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Republic Services's return on equity of 18.5% is above the Electric, Gas, and Sanitary Services median of -16.5%.

Earnings grew over 5 years

Net income grew 17.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 11.3% over the last twelve months, against a 5-year average of 10.3%.

Net margin above the industry

Republic Services's net margin of 11.3% is above the Electric, Gas, and Sanitary Services median of -6.7%.

High debt

Debt is 115% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 105% five years ago to 115%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 32.0% of total debt.

Interest well covered

Operating income covers interest expense 5.7 times.

Short-term assets don't cover short-term debts

Current assets are 0.75 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.32; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Republic Services paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; Republic Services yields 1.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 34.6% of net income.

Covered by free cash flow

Dividends take 30.1% of free cash flow.