Last Updated: 08 Nov 2024
Executive Summary
Republic Services Inc. (RSG) is a leading provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services in the United States. With a market capitalization of $65.16 billion, RSG has a strong financial position and is well-positioned for growth in the waste management industry.
Company Overview
Republic Services was founded in 1998 and is headquartered in Phoenix, Arizona. The company operates in 41 states and Puerto Rico, serving over 14 million customers. RSG's services include waste collection, recycling, disposal, and energy recovery.
Fundamental Analysis
Revenue: RSG reported revenue of $15.82 billion for the trailing twelve months (TTM), an increase of 6.5% year-over-year.
Earnings: Diluted EPS for the TTM was $6.28, an increase of 18.5% year-over-year.
Profitability: RSG has a profit margin of 12.5% and an operating margin of 21.0%, indicating strong profitability.
Valuation: RSG is trading at a trailing PE ratio of 33.13 and a forward PE ratio of 30.03, which is in line with industry peers.
Technical Analysis
Trend: RSG has been in an uptrend since early 2023, with the stock price currently trading above its 50-day and 200-day moving averages.
Support and Resistance: Key support levels are at $200 and $190, while resistance levels are at $215 and $220.
Short Term Outlook
In the short term, RSG is expected to continue to benefit from strong demand for waste management services and cost-cutting initiatives. The company's recent acquisition of ReCommunity Holdings will further strengthen its market position.
Long Term Outlook
The long-term outlook for RSG is positive. The company is well-positioned to capitalize on the growing demand for sustainable waste management solutions. RSG's investments in technology and innovation will drive future growth.
Analyst Recommendations
Analysts have a strong buy rating on RSG, with an average target price of $223.47. Six analysts have a strong buy rating, five have a buy rating, and ten have a hold rating.
Conclusion
Republic Services Inc. is a financially sound company with a strong track record of growth. The company's fundamental and technical indicators suggest that RSG is a good investment for both short-term and long-term investors.
