REPUBLIC SERVICES, INC. (RSG) Stock Analysis
REPUBLIC SERVICES, INC. (RSG) Stock Analysis
Analysis from 10-Q filed 2025-10-31. Data as of Q4 2025.
Overall Grade: F (Concerning)
REPUBLIC SERVICES, INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 9.7% | Near cost of capital |
| FCF Margin | 12.7% | Healthy cash flow |
| Debt/Equity | 1.1x | Moderate leverage |
Investment Thesis: Healthy free cash flow margin of 12.7% provides financial flexibility for growth and shareholder returns.
Explore REPUBLIC SERVICES, INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: REPUBLIC SERVICES, INC. earns 9.7% ROIC, Top 25% in Utilities
REPUBLIC SERVICES, INC.'s trailing-twelve-month ROIC of 9.7% ranks Top 25% in Utilities companies (sector median: 5.8%), driven by NOPAT margin of 14.3% combined with asset turnover of 0.6x. Source: 10-Q filed 2025-10-31. Gross margin of 49.4% with operating margin at 17.3% reflects strong pricing power.
| Metric | RSG | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.7% | Adequate | Above sector median of 5.8% |
| Return on Equity (ROE) | 18.1% | Good | Efficient use of shareholder equity |
| Gross Margin | 49.4% | Good | Strong pricing power |
| Operating Margin | 17.3% | Good | Efficient operations |
Cash Flow: REPUBLIC SERVICES, INC. generates $2.4B FCF at 12.7% margin, positive NaN/8 quarters
REPUBLIC SERVICES, INC. generated $2.4B in free cash flow (TTM), a 12.7% FCF margin, a margin that ranks Top 25% in Utilities. Operating cash flow exceeds net income by 2.0x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-31.
| Metric | RSG | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 12.7% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $2.4B | Good | Positive cash generation |
| OCF/Net Income | 2.0x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: REPUBLIC SERVICES, INC. at 1.1x leverage
REPUBLIC SERVICES, INC.'s debt-to-equity ratio of 1.1x reflects elevated leverage. Total debt of $13.0B offset by $249.0M in cash. Source: 10-Q filed 2025-10-31.
| Metric | RSG | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.1x | Adequate | Moderate leverage |
| Net Cash Position | $-12.7B | Warning | Net debt position |
Valuation: REPUBLIC SERVICES, INC. trades at 30.9x earnings
REPUBLIC SERVICES, INC. trades at a P/E of 30.9x. Free cash flow yield of 3.6% reflects market expectations for growth.
| Metric | RSG | Rating | Context |
|---|---|---|---|
| P/E Ratio | 30.9x | Adequate | Premium valuation |
| EV/Sales | 4.1x | Good | Growth premium priced in |
| FCF Yield | 3.6% | Adequate | Lower cash yield |
| Dividend Yield | 1.1% | Adequate | Growth focus over income |
Capital Allocation: REPUBLIC SERVICES, INC. returns 2.5% shareholder yield
REPUBLIC SERVICES, INC.'s total shareholder yield is 2.5% (dividends 1.1% + buybacks 1.3%). Source: 10-Q filed 2025-10-31.
| Metric | RSG | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.5% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 1.3% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $1.6B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.7% | Top 25% | 1.7x above |
| Free Cash Flow Margin | 12.7% | Top 25% | - |
| Gross Margin | 49.4% | Bottom 50% | 0.8x below |
| Operating Margin | 17.3% | Bottom 50% | 0.9x below |
| Return on Equity (ROE) | 18.1% | Top 10% | 1.9x above |
| P/E Ratio | 30.9x | N/A | - |
Financial Scorecard
| Metric | RSG | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.7% | Adequate | Top 25% of sector (median: 5.8%) |
| Free Cash Flow Margin | 12.7% | Good | Top 25% of sector (median: 0.0%) |
| Gross Margin | 49.4% | Good | Bottom 50% of sector (median: 63.3%) |
| Debt to Equity Ratio | 108.5% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 30.9x | Adequate | Growth premium |
| Free Cash Flow Yield | 3.6% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is REPUBLIC SERVICES, INC.'s Return on Invested Capital (ROIC)?
REPUBLIC SERVICES, INC. (RSG) has a trailing twelve-month Return on Invested Capital (ROIC) of 9.7%. This compares above the sector median of 5.8%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is REPUBLIC SERVICES, INC.'s Free Cash Flow Margin?
REPUBLIC SERVICES, INC. (RSG) has a free cash flow margin of 12.7%, generating $2.4 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is REPUBLIC SERVICES, INC. stock overvalued or undervalued?
REPUBLIC SERVICES, INC. (RSG) trades at a P/E ratio of 30.9x, which is above the sector median of N/A. The EV/Sales multiple is 4.1x. Free cash flow yield is 3.6%, which is in line with market averages.
Q: Does REPUBLIC SERVICES, INC. pay a dividend?
REPUBLIC SERVICES, INC. (RSG) currently pays a dividend yield of 1.1%. Including share buybacks, the total shareholder yield is 2.5%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: How much debt does REPUBLIC SERVICES, INC. have?
REPUBLIC SERVICES, INC. (RSG) has a debt-to-equity ratio of 1.1x with total debt of $13.0 billion. Net debt position is $12.7 billion.
Q: What is REPUBLIC SERVICES, INC.'s revenue and earnings growth?
REPUBLIC SERVICES, INC. (RSG) grew revenue by 3.3% year-over-year. Earnings per share increased by 5.4% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is REPUBLIC SERVICES, INC. buying back stock?
REPUBLIC SERVICES, INC. (RSG) repurchased $870.0 million of stock over the trailing twelve months. This represents a buyback yield of 1.3%.
Q: How does REPUBLIC SERVICES, INC. compare to competitors in Utilities?
Compared to other companies in Utilities, REPUBLIC SERVICES, INC. (RSG) shows: ROIC of 9.7% is above the sector median of 5.8% (Top 20%). FCF margin of 12.7% exceeds the sector median of 0.0% (Top 24% of sector). Gross margin at 49.4% is 13.9 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.
Q: What warning signs should I watch for with REPUBLIC SERVICES, INC.?
REPUBLIC SERVICES, INC. (RSG) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.