Republic Services (RSG): Assessing Valuation After a Recent Pullback in This Long-Term Compounder

Republic Services (RSG) has quietly kept compounding value for shareholders, and its recent pullback from highs is giving investors a fresh chance to reassess the waste management leader’s growth and income profile.

See our latest analysis for Republic Services.

Over the past year, Republic’s steady operations have been reflected in a respectable year to date share price return of about 7 percent. Its three year total shareholder return of roughly 71 percent shows that long term compounding is still very much intact, even after the recent 90 day share price pullback.

If this kind of durable compounding appeals to you, it can also be worth scanning for other resilient compounders in essential services and beyond through fast growing stocks with high insider ownership.

With shares trading below analyst targets yet posting only modest recent returns, investors face a key question: Is Republic Services quietly undervalued today, or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 13.4% Undervalued

Against a last close of 214.01 dollars, the most followed narrative pegs Republic Services closer to 247 dollars, suggesting meaningful upside potential.

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.

Read the complete narrative.

Curious how long dated recycling projects, rising margins, and a richer future earnings multiple all combine into that higher value? Want to see the full playbook?

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-linked end markets and execution risks around the ambitious acquisition pipeline could quickly undermine this undervaluation thesis.

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 prefer to dive into the numbers yourself, you can build a personalized view in 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.

Looking for more investment ideas?

Before you move on, lock in your next opportunity using the Simply Wall St Screener, where fresh, data driven stock ideas are waiting for you.

• Capture potential bargains by targeting quality businesses trading below intrinsic value through these 909 undervalued stocks based on cash flows grounded in cash flow fundamentals.
• Ride powerful technology shifts by focusing on companies building real world solutions in artificial intelligence across these 25 AI penny stocks.
• Strengthen your income stream by zeroing in on dependable payers using these 13 dividend stocks with yields > 3% to uncover yields above 3 percent.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com