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RSG$223.08

Republic Services, Inc.

Last Updated
May 21, 20263 months ago
Moat & Trend
Management
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Competitive Radar

Moat Score

61/100

Executive Summary

Republic Services has a durable but not impregnable competitive position. Its moat comes mainly from route density, vertical integration, scarce landfill access, and local operating scale rather than from classic network effects. Customers face some friction in switching waste providers, and the brand benefits from long-standing municipal and commercial relationships. However, the industry remains competitive and geographically fragmented at the local level, which limits pricing power and keeps the moat from becoming wide. The score is held down by weak network effects and only moderate switching costs, but the company’s scale economics and disposal assets support a resilient, defensive franchise with a gradually strengthening outlook.

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Last Updated
Aug 25, 20263 days ago
Target Price
Analyst Consensus
FAIR VALUE
Financial Strength

Financial Score

73/100

Executive Summary

Republic Services’ most notable strength is its durable, high-margin cash generation, with operating margin expansion, rising ROA/ROE, and consistently strong free cash flow underscoring resilient execution. Revenue and earnings have compounded steadily from FY22 to FY25, though both growth rates have cooled in the TTM period, signaling deceleration rather than deterioration. Cash flow remains a clear anchor: operating cash flow and free cash flow continue to rise, comfortably funding capex, dividends, and buybacks. By contrast, the balance sheet is the main tension point, as negative working capital and modest cash leave the company reliant on operating cash flow for near-term liquidity, even though leverage remains manageable and equity has grown. Overall, Republic Services profiles as a stable, high-quality operator with excellent profitability and solid cash generation, tempered by slower growth and a more constrained balance sheet, consistent with its mid-to-high 7 ratings.

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Frequently asked questions about Republic Services, Inc.

Does Republic Services, Inc. (RSG) have an economic moat?
MoatScan AI rates Republic Services, Inc. (RSG) 61/100 for moat strength, assessed across five sources of competitive advantage: network effects, switching costs, intangible assets, cost advantages and efficient scale. Republic Services has a durable but not impregnable competitive position.Sign in free to see the Moat Type verdict and the pillar-by-pillar reasoning.
What is Republic Services, Inc.'s moat score?
Republic Services, Inc. (RSG) has a moat score of 61/100. The score is a weighted average of five pillar ratings: network effects, switching costs, intangible assets, cost advantages, and efficient scale. A higher score means the competitive advantages MoatScan AI identifies are wider and more durable.Sign in free to see each pillar rating, the Moat Type verdict and the moat trend.
Is RSG stock overvalued or undervalued?
MoatScan AI answers this by estimating RSG's intrinsic value with a discounted cash flow (DCF) model, then comparing that estimate to the current market price. A share price meaningfully below the estimate is flagged undervalued; meaningfully above it, overvalued. The estimate updates with each new financial analysis.Sign in free to see the fair value estimate, the implied upside or downside, and the verdict.
What is Republic Services, Inc.'s fair value estimate?
MoatScan AI derives Republic Services, Inc.'s (RSG) fair value per share from a discounted cash flow (DCF) model built on the company's reported financials, analyst growth forecasts, and a discount rate reflecting its cost of capital. The Financial Analysis tab shows the estimate alongside every assumption behind it.Sign in free to see the estimate and the full assumptions behind it.

Disclaimer: The analysis on this page is generated by AI and is provided for informational purposes only. It does not constitute financial advice, investment recommendations, or an offer to buy or sell any security. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decisions.