Republic Services Inc

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RSG : NYSE : Industrial Goods
$52.21 -0.21 | -0.40%
Today's Range: 52.31 - 52.70
Avg. Daily Volume: 1,334,300
07/26/16 - 11:09 AM ET

Financial Analysis


REPUBLIC SERVICES INC's gross profit margin for the first quarter of its fiscal year 2016 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 0.59 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating 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.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)2248.62169.4
EBITDA ($mil)626.0625.9
EBIT ($mil)363.0372.8
Net Income ($mil)156.7172.4


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)33.4134.3
Total Assets ($mil)20539.220593.7
Total Debt ($mil)7560.47564.6
Equity ($mil)7763.27762.1


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin38.5739.88
EBITDA Margin27.8328.85
Operating Margin16.1417.18
Sales Turnover0.450.43
Return on Assets3.572.85
Return on Equity9.457.56
Debt Q1 FY16 Q1 FY15
Current Ratio0.650.77
Debt/Capital0.490.49
Interest Expense93.789.5
Interest Coverage3.874.17


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)344.5351.8
Div / share0.30.28
EPS0.450.49
Book value / share22.5322.06
Institutional Own % n/a n/a
Avg Daily Volume1342731.01751744.0

Valuation


BUY. REPUBLIC SERVICES INC's P/E ratio indicates a discount compared to an average of 32.51 for the Commercial Services & Supplies industry and a value on par with the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.31 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.05. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RSG 24.90 Peers 32.51   RSG 11.07 Peers 16.57

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RSG 22.14 Peers 25.92   RSG 24.17 Peers 8.41

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

RSG is trading at a valuation on par with its peers.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RSG 2.31 Peers 5.05   RSG 26.66 Peers -23.37

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

RSG is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RSG 1.95 Peers 2.24   RSG 3.35 Peers 2.84

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

RSG has a sales growth rate that exceeds its peers.

 

 

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