July 10, 2025 a 02:46 am
RSG: Dividend Analysis - Republic Services, Inc.
Republic Services, Inc. presents a stable dividend profile with a history of consistent payments over the past 23 years. With a current dividend yield of 1.20% and an impressive track record, RSG continues to be a reliable choice for dividend-focused investors. Despite the recent dividend cut in 2024, the company's modest payout ratios suggest room for future growth.
📊 Overview
Republic Services operates within the industrial sector, ensuring dependable dividend distributions reflected in its extensive 23-year history of dividend payments. The sector positioning provides a stable foundation, safeguarding against market volatility. Analyzed metrics include a current yield of 1.20% and a dividend per share of $2.19.
| Metric | Value |
|---|---|
| Sector | Industrial |
| Dividend Yield | 1.20% |
| Current Dividend per Share | $2.19 |
| Dividend History | 23 years |
| Last Cut or Suspension | 2024 |
🗣️ Dividend History
The importance of dividend history cannot be overstated; it signifies a company’s commitment to returning value to shareholders. Even amidst economic disruptions, Republic Services maintained regular dividend distributions.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.74 |
| 2024 | 1.65 |
| 2023 | 2.06 |
| 2022 | 1.91 |
| 2021 | 1.77 |
📈 Dividend Growth
Dividend growth is a powerful indicator of financial health and future potential for income expansion. Republic Services exhibits a mixed growth trajectory with recent declines and modest long-term increases.
| Time | Growth |
|---|---|
| 3 years | -2.31% |
| 5 years | 1.13% |
The average dividend growth is 1.13% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Payout ratios indicate the sustainability of dividend payments. An analysis shows Republic Services maintains a prudent approach with EPS and FCF payout ratios at 32.82% and 29.06%, respectively, ensuring dividend viability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 32.82% |
| Free Cash Flow-based | 29.06% |
These payout ratios reflect a healthy balance, allowing for dividend stability while retaining sufficient capital for reinvestment.
✅ Cash Flow & Capital Efficiency
Strong cash flow metrics are crucial for operational stability and facilitating capital expenditure. With a free cash flow yield at 3.13% and a CAPEX to operating cash flow ratio of 43.37%, Republic Services showcases robust capital efficiency.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.29% | 3.81% | 4.25% |
| Earnings Yield | 3.23% | 3.32% | 3.64% |
| CAPEX to Operating Cash Flow | 47.13% | 45.09% | 45.58% |
| Stock-based Compensation to Revenue | 0.27% | 0.27% | 0.29% |
| Free Cash Flow / Operating Cash Flow Ratio | 52.87% | 54.91% | 54.42% |
The high ratios underline the company's efficiency in converting revenues to cash, crucial for ongoing dividend commitments.
⚠️ Balance Sheet & Leverage Analysis
The leverage ratios highlight a stable financial structure with the debt-to-equity ratio at 1.14x for 2024—a favorable indication of sound debt management.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.14 | 1.24 | 1.22 |
| Debt-to-Assets | 0.40 | 0.42 | 0.41 |
| Debt-to-Capital | 0.53 | 0.55 | 0.55 |
| Net Debt to EBITDA | 2.70 | 2.99 | 3.18 |
| Current Ratio | — | — | 0.70 |
| Quick Ratio | 0.56 | 0.54 | 0.67 |
| Financial Leverage | 2.84 | 2.98 | 3.00 |
Despite moderate leverage, the balance sheet maintains considerable financial health and liquidity, ensuring operational flexibility.
✅ Fundamental Strength & Profitability
Profitability metrics, including a return on equity of 18.40% in the latest year, exemplify the company’s capacity to generate returns on shareholder investments efficiently.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 18.41% | 16.42% | 15.36% |
| Return on Assets | 6.30% | 5.51% | 5.12% |
| Margins: Net | 12.74% | 11.57% | 11.01% |
| EBIT | 18.53% | 18.04% | 16.48% |
| EBITDA | 29.73% | 28.87% | 27.08% |
| Gross | 41.68% | 40.24% | 39.28% |
| R&D to Revenue | 0% | 0% | 0% |
These indicators underscore a strong foundation in profitability and margin resilience, bolstered by prudent financial management.
📈 Price Development
Dividend Scoring System
| Criterion | Score | Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 2 | |
| Payout Ratio | 5 | |
| Financial Stability | 5 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 31/40
Rating
In conclusion, Republic Services, Inc. maintains a solid dividend framework bolstered by stable financials and debt management. The current challenges in dividend growth are an area of caution; however, the overall health suggests potential for future enhancements. For income-seeking investors, Republic Services remains a commendable investment with a balanced risk-return profile.