Republic Services Inc

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RSG : NYSE : Industrial Goods
$62.84 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1257500.0
05/25/17 - 4:02 PM ET

Financial Analysis


REPUBLIC SERVICES INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. REPUBLIC SERVICES INC has weak liquidity. Currently, the Quick Ratio is 0.62 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 virtually unchanged only decreasing by 1.02% 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 FY17 Q1 FY16
Net Sales ($mil)2392.82248.6
EBITDA ($mil)655.2626.0
EBIT ($mil)380.0357.2
Net Income ($mil)187.8156.7


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)33.233.4
Total Assets ($mil)20595.820539.2
Total Debt ($mil)7670.17560.4
Equity ($mil)7683.37763.2


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin37.9838.57
EBITDA Margin27.3827.83
Operating Margin15.8815.89
Sales Turnover0.460.45
Return on Assets3.123.57
Return on Equity8.379.45
Debt Q1 FY17 Q1 FY16
Current Ratio0.690.65
Debt/Capital0.50.49
Interest Expense81.384.0
Interest Coverage4.674.25


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)338.8344.5
Div / share0.320.3
EPS0.550.45
Book value / share22.6822.53
Institutional Own % n/a n/a
Avg Daily Volume1299841.01211762.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 34.87 for the Commercial Services & Supplies industry and a premium compared to the S&P 500 average of 25.02. To use another comparison, its price-to-book ratio of 2.72 indicates valuation on par with the S&P 500 average of 3.00 and a significant discount versus the industry average of 4.80. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. 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 32.98 Peers 34.87   RSG 11.21 Peers 15.29

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

RSG is trading at a valuation on par with 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 23.72 Peers 25.50   RSG 0.98 Peers 1.30

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.

 

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RSG 2.72 Peers 4.80   RSG -10.53 Peers 49.20

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RSG 2.19 Peers 2.39   RSG 3.67 Peers 14.40

Average. 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 valuation on par with 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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