Republic Services (RSG): Is This Steady Compounder Still Undervalued After Recent Share Price Consolidation?
Republic Services (RSG) has been treading water lately, with the stock roughly flat over the past month and down about 6% in the past 3 months, despite steady earnings growth.
See our latest analysis for Republic Services.
Over the past year, Republic Services has quietly delivered a mid single digit total shareholder return while its 3 year and 5 year total shareholder returns of roughly 71% and 138% suggest longer term momentum remains firmly intact, even as near term share price returns cool around the current 213.2 dollars level.
If steady compounders like Republic Services are on your radar, it could also be worth scouting fast growing stocks with high insider ownership for more under the radar growth ideas with skin in the game.
With solid earnings growth, a premium to intrinsic value, and upside to analyst targets, the market seems to acknowledge Republic Services resilience. However, is there still a margin of safety here, or is future growth already priced in?
Most Popular Narrative Narrative: 13.7% Undervalued
With Republic Services last closing at 213.2 dollars against a most popular fair value estimate of about 247 dollars, the narrative leans toward meaningful upside and frames that view around long term structural shifts in the business.
Sustainability efforts such as the development of Polymer Centers and the Blue Polymers joint venture could drive future revenue growth by enhancing plastic circularity and decarbonization. These operations are expected to contribute to earnings starting in the second half of 2025.
Want to see what kind of steady expansion in revenue, earnings power, and profit margins justifies that higher fair value and premium future earnings multiple? Explore how these projections stack together to support a price usually reserved for faster growing sectors, and discover which assumptions quietly carry the biggest weight in this upside story.
Result: Fair Value of $247 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent volume softness in construction exposed markets, or missteps integrating acquisitions, could easily blunt those bullish margin and valuation assumptions.
Find out about the key risks to this Republic Services narrative.
Build Your Own Republic Services Narrative
If you see the story differently or simply want to dig into the numbers yourself, you can build a customized narrative in just a few minutes, Do it your way.
A great starting point for your Republic Services research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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