RSG Stock Analysis — Republic Services
Sector: Industrials
AI Verdict
RSG trades at 28.6x next year's earnings for just 6.0% expected EPS growth, so you're paying a premium the numbers don't yet support unless its landfill moat delivers a surprise acceleration.
Competitive Moat
Republic Services operates in the waste management industry, where local landfill ownership and long-term municipal contracts create high barriers to entry. Its scale allows for route density and pricing power, making it difficult for smaller competitors to match efficiency or win contracts.
Summary
RSG's defensible landfill network is under scrutiny as its premium valuation faces pressure from weak returns.
Where It Stands
Shares are down -15.45% over the past year with an RSI of 38.2 signaling cooling sentiment, while a forward P/E of 28.6x sits well above the industrials sector median of 20x.
Key Metrics
- RSI: 38.2 — Near Oversold
- Trailing P/E: 30.4x
- Forward P/E: 28.6x
- PEG Ratio: 5.31
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $64.4B
- Dividend Yield: 0.01%
- 1-Year Return: -15.45%
- 52-Week High: $258.75
- 52-Week Low: $201.42
Analyst Consensus
20 Buy · 13 Hold · 0 Sell (33 analysts)
Bull Case
The 6.0% forward EPS growth forecast is underpinned by a $64.4B market cap and protected by entrenched contracts that typically provide steady cash flows.
Bear Case
With a trailing P/E of 30.4x and a PEG ratio of 5.31, a reversion to the sector median P/E would imply a further 34% downside if growth doesn't accelerate.
Catalyst to Watch
Upcoming municipal contract renewals or regulatory changes could shift the earnings outlook and justify—or undermine—the current premium.