-0.54 | -1.54%
REPUBLIC SERVICES INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. REPUBLIC SERVICES INC has weak liquidity. Currently, the Quick Ratio is 0.60 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 1998.6 | 1982.4 |
| EBITDA ($mil) | 569.0 | 556.8 |
| EBIT ($mil) | 340.2 | 323.4 |
| Net Income ($mil) | 124.6 | 142.9 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 130.1 | 73.5 |
| Total Assets ($mil) | 19639.1 | 19455.9 |
| Total Debt ($mil) | 7032.9 | 6904.5 |
| Equity ($mil) | 7731.7 | 7751.7 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 38.8 | 39.31 |
| EBITDA Margin | 28.46 | 28.08 |
| Operating Margin | 17.02 | 16.31 |
| Sales Turnover | 0.41 | 0.42 |
| Return on Assets | 2.81 | 2.94 |
| Return on Equity | 7.15 | 7.4 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 0.73 | 0.69 |
| Debt/Capital | 0.48 | 0.47 |
| Interest Expense | 90.9 | 105.8 |
| Interest Coverage | 3.74 | 3.06 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 361.4 | 370.8 |
| Div / share | 0.24 | 0.22 |
| EPS | 0.34 | 0.38 |
| Book value / share | 21.39 | 20.91 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1644391.0 | 1870022.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 28.84 for the Commercial Services & Supplies industry and a premium compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 1.61 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 5.07. The current price-to-sales ratio is similar to the S&P 500 average, but it is below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, REPUBLIC SERVICES INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RSG 22.87 | Peers 28.84 | RSG 7.76 | Peers 12.68 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. RSG is trading at a discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. RSG is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| RSG 16.45 | Peers 21.13 | RSG 1.00 | Peers 1.75 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. RSG is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. RSG trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| RSG 1.61 | Peers 5.07 | RSG -1.31 | Peers 1.38 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RSG is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, RSG is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| RSG 1.53 | Peers 1.97 | RSG -0.93 | Peers 2.52 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RSG is trading at a discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. RSG significantly trails its peers on the basis of sales growth |
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