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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 69.2GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
18.1%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.01%
Trailing Yield
$1.01
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
32%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, REPUBLIC SERVICES, INC. (RSG) receives a "Hold" rating with a composite score of 54.2/100, ranked #497 out of 4446 stocks. Key factor scores: Quality 69/100, Value 56/100, Momentum 41/100. This is quantitative analysis only — not investment advice.
REPUBLIC SERVICES, INC. (RSG) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does REPUBLIC SERVICES, INC. Do?
Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. Its collection services include curbside collection of material for transport to transfer stations, landfills, or recycling processing centers; supply of recycling and waste containers; and renting of compactors. In addition, the company engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill and transfer services. Further, it offers disposal of non-hazardous solid and liquid material and in-plant services, such as transportation and logistics. It serves small-container, large-container, and residential customers. As of December 31, 2021, the company operated through 356 collection operations, 239 transfer stations, 198 active landfills, 71 recycling processing centers, 6 saltwater disposal wells, and 7 deep injection wells, as well as 3 treatment, recovery, and disposal facilities in 41 states. It also operated 77 landfill gas-to-energy and renewable energy projects and had 124 closed landfills. The company was incorporated in 1996 and is based in Phoenix, Arizona. REPUBLIC SERVICES, INC. (RSG) is classified as a large-cap stock in the Industrials sector, specifically within the Business Services industry. The company is led by CEO Jon V. Ark and employs approximately 40,000 people, headquartered in Phoenix, Arizona. With a market capitalization of $68.2B, RSG is one of the prominent companies in the Industrials sector.
REPUBLIC SERVICES, INC. (RSG) Stock Rating — Hold (April 2026)
As of April 2026, REPUBLIC SERVICES, INC. receives a Hold rating with a composite score of 54.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.RSG ranks #497 out of 4,446 stocks in our coverage universe. Within the Industrials sector, REPUBLIC SERVICES, INC. ranks #83 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
RSG Stock Price and 52-Week Range
REPUBLIC SERVICES, INC. (RSG) currently trades at $214.66. The stock lost $2.34 (1.1%) in the most recent trading session. The 52-week high for RSG is $258.75, which means the stock is currently trading -17.0% from its annual peak. The 52-week low is $201.42, putting the stock 6.6% above its annual trough. Recent trading volume was 1.6M shares, reflecting moderate market activity.
Is RSG Overvalued or Undervalued? — Valuation Analysis
REPUBLIC SERVICES, INC. (RSG) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 31.51x, compared to the Industrials sector average of 28.33x — a premium of 11%. The price-to-book ratio stands at 5.69x, versus the sector average of 2.23x. The price-to-sales ratio is 3.59x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, RSG trades at 24.44x EV/EBITDA, versus 5.70x for the sector.
Overall, RSG's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
REPUBLIC SERVICES, INC. Profitability — ROE, Margins, and Quality Score
REPUBLIC SERVICES, INC. (RSG) earns a quality factor score of 69/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 18.1%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 6.3% versus the sector average of 3.3%.
On a margin basis, REPUBLIC SERVICES, INC. reports gross margins of 49.5%, compared to 35.8% for the sector. The operating margin is 17.6% (sector: 6.2%). Net profit margin stands at 11.4%, versus 3.9% for the average Industrials stock. Revenue growth is running at 3.5% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
RSG Debt, Balance Sheet, and Financial Health
REPUBLIC SERVICES, INC. has a debt-to-equity ratio of 115.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 0.64x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $13.71B. Cash and equivalents stand at $84M.
RSG has a beta of 0.21, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for REPUBLIC SERVICES, INC. is 92/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
REPUBLIC SERVICES, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, REPUBLIC SERVICES, INC. reported revenue of $18.98B and earnings per share (EPS) of $6.86. Net income for the quarter was $2.16B. Gross margin was 49.5%. Operating income came in at $3.35B.
In FY 2025, REPUBLIC SERVICES, INC. reported revenue of $19.03B and earnings per share (EPS) of $6.86. Net income for the quarter was $2.14B. Gross margin was 49.4%. Revenue grew 3.3% year-over-year compared to FY 2024. Operating income came in at $3.30B.
In Q3 2025, REPUBLIC SERVICES, INC. reported revenue of $4.83B and earnings per share (EPS) of $1.76. Net income for the quarter was $550M. Gross margin was 49.0%. Revenue grew 3.1% year-over-year compared to Q3 2024. Operating income came in at $836M.
In Q2 2025, REPUBLIC SERVICES, INC. reported revenue of $4.88B and earnings per share (EPS) of $1.76. Net income for the quarter was $550M. Gross margin was 49.8%. Revenue grew 4.7% year-over-year compared to Q2 2024. Operating income came in at $861M.
Over the past 8 quarters, REPUBLIC SERVICES, INC. has demonstrated a growth trajectory, with revenue expanding from $4.66B to $18.98B. Investors analyzing RSG stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
RSG Dividend Yield and Income Analysis
REPUBLIC SERVICES, INC. (RSG) currently pays a dividend yield of 1.0%. At this yield, a $10,000 investment in RSG stock would generate approximately $$101.00 in annual dividend income. The net margin of 11.4% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
RSG Momentum and Technical Analysis Profile
REPUBLIC SERVICES, INC. (RSG) has a momentum factor score of 41/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 23/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
RSG vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing RSG against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full RSG vs S&P 500 (SPY) comparison to assess how REPUBLIC SERVICES, INC. stacks up against the broader market across all factor dimensions.
RSG Next Earnings Date
No upcoming earnings date has been announced for REPUBLIC SERVICES, INC. (RSG) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy RSG? — Investment Thesis Summary
REPUBLIC SERVICES, INC. presents a balanced picture with arguments on both sides. The quality score of 69/100 indicates above-average profitability and business fundamentals. Low volatility (stability score 92/100) reduces downside risk.
In summary, REPUBLIC SERVICES, INC. (RSG) earns a Hold rating with a composite score of 54.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on RSG stock.
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Institutional Research Dossier
REPUBLIC SERVICES, INC. (RSG) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Republic Services (RSG), driven by its solid, albeit unspectacular, financial performance and a valuation that appears full relative to its growth prospects. While RSG benefits from the essential nature of its services and a degree of pricing power, its relatively high leverage and negative free cash flow raise concerns. The company's strong profitability metrics are somewhat offset by its capital allocation strategy and the inherent limitations of growth in the waste management industry.
The primary takeaway is that while RSG is a fundamentally sound business with a defensible market position, the current valuation doesn't offer a compelling margin of safety. Investors should carefully weigh the company's strengths against its financial constraints and valuation before initiating or adding to positions.
Business Strategy & Overview
Republic Services operates primarily in the United States, providing a comprehensive suite of environmental services. These services encompass the collection, transfer, disposal, and recycling of non-hazardous solid waste. The company generates revenue through various channels, including fees for collection services (residential, small container, and large container), processing and sale of recyclable materials, landfill disposal fees, and other environmental solutions such as landfill gas-to-energy projects.
RSG's strategic positioning revolves around building a geographically diverse network of collection operations, transfer stations, landfills, and recycling centers. This integrated approach allows the company to capture value across the waste management value chain, from initial collection to final disposal or recycling. The company also focuses on securing long-term contracts with municipalities and commercial customers, providing a stable revenue base.
A key element of RSG's strategy is its investment in renewable energy projects, particularly landfill gas-to-energy facilities. These projects not only generate revenue but also contribute to the company's sustainability efforts and enhance its reputation. Furthermore, RSG actively pursues acquisitions to expand its geographic footprint and service offerings, consolidating its position in a fragmented industry.
The waste management industry is characterized by high barriers to entry, including the significant capital investment required to develop and operate landfills and the regulatory hurdles associated with obtaining permits. This creates a relatively stable competitive landscape, with a few large players dominating the market. RSG competes with other national waste management companies, as well as regional and local operators.
RSG's product pipeline is not typically characterized by radical innovation but rather by incremental improvements in operational efficiency, waste processing technologies, and renewable energy solutions. The company continuously seeks to optimize its collection routes, improve landfill management practices, and enhance the recovery of recyclable materials. These efforts contribute to cost savings, increased revenue generation, and improved environmental performance.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
3.5%
Sector: 6.4%
-45% VS SCTR
Economic Moat Analysis
Republic Services possesses a Narrow economic moat, primarily derived from efficient scale and, to a lesser extent, switching costs. The waste management industry inherently favors large, established players due to the significant capital expenditures required to develop and operate landfills. The permitting process for new landfills is also lengthy and complex, creating a barrier to entry for smaller competitors. This efficient scale allows RSG to operate landfills at a lower cost per ton compared to smaller operators, providing a competitive advantage.
Switching costs also contribute to RSG's moat, particularly for commercial and municipal customers with long-term contracts. Changing waste management providers can be disruptive and time-consuming, as it requires renegotiating contracts, coordinating service schedules, and potentially investing in new waste containers. While these switching costs are not insurmountable, they provide a degree of customer stickiness and reduce the likelihood of customers switching to lower-priced competitors.
Intangible assets, such as brand reputation and regulatory permits, also play a role in RSG's moat. A strong reputation for reliability and environmental compliance is crucial in the waste management industry, as customers rely on their providers to handle waste safely and responsibly. Regulatory permits, particularly for landfills, are valuable assets that are difficult to obtain, further limiting competition.
However, RSG's moat is not as wide as some other companies in the industrials sector. The waste management industry is still subject to competitive pressures, and customers can and do switch providers if they find a better price or service. Furthermore, the growth of recycling and waste reduction initiatives could potentially reduce the demand for landfill disposal, impacting RSG's core business.
The company's ability to maintain and widen its moat will depend on its continued investment in efficient operations, its ability to secure long-term contracts, and its success in adapting to changing waste management practices. While the existing moat provides a degree of protection, it is not impenetrable and requires ongoing effort to defend.
Financial Health & Profitability
Republic Services demonstrates solid financial health, characterized by consistent revenue growth and strong profitability metrics. The company's revenue has steadily increased over the past several years, driven by organic growth and acquisitions. The revenue increased from $17.28B in FY2023 to $19.03B in FY2025. Gross margins have remained consistently high, hovering around 49%, indicating strong pricing power and efficient operations. Operating margins are also robust, consistently above 17%, reflecting effective cost management.
However, the company's free cash flow is a concern. The TTM free cash flow is negative at $-630.63M. This is a red flag, especially considering the company's debt load. While the historical quarterly data doesn't provide FCF, the negative TTM figure warrants further investigation into capital expenditures and working capital management.
RSG's balance sheet reveals a significant amount of debt. Total debt stands at $13.71B, while total cash is a meager $84.00M. The debt-to-equity ratio is high at 115.00, significantly exceeding the sector average of 70.00. This high leverage increases the company's financial risk and limits its flexibility to pursue acquisitions or invest in growth initiatives.
The company's return on equity (ROE) is impressive at 18.1%, significantly higher than the sector average of 9.2%. This indicates that RSG is effectively utilizing shareholder equity to generate profits. However, the high ROE is partially driven by the company's high leverage, which also amplifies financial risk.
The current ratio is low at 0.64, indicating potential liquidity issues. This suggests that the company may struggle to meet its short-term obligations. While the company's strong profitability provides some cushion, the low current ratio warrants close monitoring.
Valuation Assessment
Republic Services' valuation appears stretched based on several key metrics. The company's price-to-earnings (P/E) ratio is 32.0x, significantly higher than the sector average of 27.7x. This suggests that investors are paying a premium for RSG's earnings, potentially reflecting expectations of future growth or the perceived stability of the business.
The enterprise value-to-EBITDA (EV/EBITDA) ratio is 6.2x, slightly above the sector average of 5.7x. While not as extreme as the P/E ratio, this still indicates that RSG is relatively expensive compared to its peers. Given the company's moderate revenue growth of 3.5%, the premium valuation is difficult to justify.
The negative free cash flow further complicates the valuation picture. A traditional discounted cash flow (DCF) analysis would be challenging given the lack of positive FCF. This suggests that the company's current market capitalization may be based on expectations of future FCF generation, which are not yet reflected in the company's financial performance.
Compared to its historical valuation, RSG's current multiples are also elevated. The company's P/E ratio has historically traded in a lower range, suggesting that the current valuation may be influenced by recent market sentiment or specific company events. A more conservative valuation approach would be warranted given the company's financial constraints and moderate growth prospects.
Overall, RSG's valuation appears full, reflecting the company's strong profitability and stable business model. However, the high leverage, negative free cash flow, and moderate growth rate suggest that the current valuation may not offer a sufficient margin of safety for investors. A more attractive entry point may be warranted before initiating or adding to positions.
Risk & Uncertainty
Republic Services faces several specific risks that could impact its financial performance and valuation. One significant risk is regulatory scrutiny. The waste management industry is subject to extensive environmental regulations, and changes in these regulations could increase compliance costs or limit the company's ability to operate its landfills. Stricter regulations on landfill emissions, waste disposal practices, or recycling requirements could negatively impact RSG's profitability.
Another risk is competition. While the waste management industry is relatively concentrated, RSG still faces competition from other national and regional players. Increased competition could lead to price wars, reduced margins, and loss of market share. The emergence of new waste management technologies or business models could also disrupt the industry and threaten RSG's competitive position.
The company's high leverage poses a significant financial risk. The large debt burden increases RSG's vulnerability to economic downturns and interest rate hikes. A recession could reduce waste generation and lower demand for RSG's services, while rising interest rates could increase the company's borrowing costs and reduce its profitability. The negative free cash flow further exacerbates this risk, as it limits the company's ability to repay debt or invest in growth initiatives.
Environmental liabilities also represent a potential risk. Landfills can be subject to environmental contamination, and RSG could face significant costs associated with remediation or cleanup. Furthermore, the company could be held liable for damages caused by its operations, such as groundwater contamination or air pollution.
Bulls Say / Bears Say
The Bull Case
BULL VIEWRepublic Services benefits from the essential nature of waste management, providing a stable and predictable revenue stream regardless of economic conditions.
BULL VIEWThe company's integrated network of collection, transfer, and disposal facilities allows it to capture value across the waste management value chain, enhancing profitability and efficiency.
BULL VIEWRepublic Services' investments in renewable energy projects, such as landfill gas-to-energy facilities, not only generate revenue but also enhance its sustainability profile and attract environmentally conscious investors.
The Bear Case
BEAR VIEWRepublic Services' high debt load and negative free cash flow raise concerns about its financial flexibility and ability to invest in future growth.
BEAR VIEWThe company's valuation is stretched relative to its growth prospects, suggesting that investors are paying a premium for its earnings and stability.
BEAR VIEWIncreased competition and stricter environmental regulations could erode Republic Services' profitability and market share, negatively impacting its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score RSG and 4,400+ other equities.
REPUBLIC SERVICES, INC. exhibits a 278% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.3%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
49.5%
Sector: 35.8%
Operating Margin
Core business profitability
17.6%
Sector: 6.2%
Net Margin
Bottom-line profitability
11.4%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $101 annually in dividends at the current trailing rate.
