Investment Thesis
Republic Services demonstrates solid operational performance with strong revenue growth of 14.7% YoY and healthy profitability metrics (17.4% operating margin, 11.2% net margin). The company generates robust free cash flow of $2.4B with excellent interest coverage of 23.7x, indicating strong debt servicing capability despite elevated leverage. Financial health is supported by substantial operating cash generation, though liquidity concerns and high debt levels warrant monitoring.
RSG Strengths
- Strong revenue growth of 14.7% YoY with $19.0B in sales
- Solid profitability with 17.4% operating margin and 11.2% net margin
- Robust free cash flow generation of $2.4B (12.7% FCF margin)
- Excellent interest coverage ratio of 23.7x demonstrating debt service capability
- Strong return on equity of 17.9% and return on assets of 6.2%
- Significant operating cash flow of $4.3B supporting capital investment
RSG Risks
- Low liquidity position with current ratio of 0.64x and quick ratio of 0.62x
- High leverage with debt-to-equity ratio of 1.15x and $13.7B long-term debt
- Minimal cash position of only $76.0M relative to total assets of $34.4B
- Net income growth stagnant at 0.0% YoY despite strong revenue growth, indicating margin pressure
- Capital intensive business requiring $1.9B annual capex, limiting financial flexibility
Key Metrics to Watch
- Operating margin trend and cost inflation management
- Free cash flow conversion and capital expenditure efficiency
- Net income growth acceleration versus revenue growth
- Debt/equity ratio trajectory and refinancing needs
- Current ratio improvement and cash position strengthening
RSG Financial Metrics
RSG Profitability Ratios
RSG Balance Sheet & Liquidity
RSG 5-Year Financial Trend
5-Year Trend Summary: REPUBLIC SERVICES, INC.'s revenue has grown significantly by 47% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.47 reflects profitable operations.
RSG Growth Metrics (YoY)
RSG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.1B | $549.7M | $1.76 |
| Q2 2025 | $4.0B | $511.5M | $1.62 |
| Q1 2025 | $3.9B | $453.8M | $1.44 |
| Q3 2024 | $3.8B | $480.2M | $1.52 |
| Q2 2024 | $3.7B | $427.4M | $1.35 |
| Q1 2024 | $3.6B | $383.9M | $1.21 |
| Q3 2023 | $3.6B | $416.9M | $1.32 |
| Q2 2023 | $3.4B | $371.9M | $1.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RSG Capital Allocation
RSG SEC Filings
Access official SEC EDGAR filings for REPUBLIC SERVICES, INC. (CIK: 0001060391)