What drives this waste and recycling network?
Republic Services is a waste and recycling company that provides collection, transfer, disposal, and related environmental services. Its operations include running landfill and recycling assets alongside route-based pickup services for customers. The business is built around long-lived infrastructure and a large service network. At roughly USD 66.1 billion in market value, it sits in the large-cap range.
Are steady margins supporting recent growth?
FundamentalsFor 2025 (reported in USD), revenue was about USD 16.6 billion, with EBIT of roughly USD 3.3 billion and net income of around USD 2.1 billion. Revenue growth versus the prior year was 3.5%, while profitability remained supported by a 41.95% gross margin, a 19.90% operating margin, and a 12.89% net profit margin on a trailing basis.
Cash on hand was USD 76 million against total debt of USD 1.19 billion. Depreciation and amortization were USD 1.93 billion, and the company’s cash-flow proxy was about USD 4.77 billion, reflecting the earnings base plus non-cash charges and an estimate of capital spending effects.
Is the market already pricing high returns?
DCF / MultiplesAt USD 214.04, the stock trades near the lower end of its DCF-based fair value range. The current pricing also comes with a 30.37 trailing P/E and 15.28 EV/EBITDA, which frames the valuation alongside a business that has been producing a high-teen ROE.
Solid returns but limited cushion
TakeawayThe setup looks more balanced than the multiples first suggest. Returns on equity are solid, and margins are holding up. The case still leans on keeping profitability steady. If returns fade, the current pricing can look less forgiving.