Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin20.2%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin12.8%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt26.8 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$14.5B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$1.2B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book5.26x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$751M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income90.7%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$1.5B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Republic Services, Inc.
Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States and Canada. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Its residential collection services include curbside collection of material for transport to transfer stations, landfills, recycling centers, and organics processing facilities; supply of recycling and waste containers; and renting of compactors. The company also engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill services. It serves small-container, large-container, and residential customers. The company was incorporated in 1996 and is based in Phoenix, Arizona.
Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States and Canada. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Its residential collection services include curbside collection of material for transport to transfer stations, landfills, recycling centers, and organics processing facilities; supply of recycling and waste containers; and renting of compactors. The company also engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill services. It serves small-container, large-container, and residential customers. The company was incorporated in 1996 and is based in Phoenix, Arizona.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Republic Services, Inc. at $204.94.
The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.
At $204.94, the stock trades at a 431% premium to its Graham Number of $38.59. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Gross Profit %
42.5%▲
41.9%•
N/A
Operating Margin %
20.2%▲
19.5%•
N/A
Net Income %
12.8%▼
13.2%•
N/A
Diluted EPS
1.70▼
1.76•
N/A
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$34.6B
$34.4B
N/A
Total Debt
$14.1B▲
$13.8B•
N/A
Working Capital
-$1.2B▲
-$1.4B•
N/A
Years to Pay Debt
26.83
25.38
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Free Cash Flow
$751M▲
$404M•
N/A
Owner Earnings
$1.5B
$1.6B
N/A
CapEx % of Net Income
90.7%
106.1%
N/A
Income Statement
2026
2025
2024
Tax Effect Of Unusual Items
-199
-248
Tax Rate For Calcs
0
0
Normalized EBITDA
1,299,000
1,203,000
Total Unusual Items
-1,000
-7,000
Total Unusual Items Excluding Goodwill
-1,000
-7,000
Net Income From Continuing Operation Net Minority Interest
525,000
544,000
Reconciled Depreciation
491,000
486,000
Reconciled Cost Of Revenue
2,336,000
2,376,000
EBITDA
1,298,000
1,196,000
EBIT
807,000
710,000
Net Interest Income
-149,000
-144,000
Interest Expense
151,000
146,000
Interest Income
2,000
2,000
Normalized Income
525,801
550,752
Net Income From Continuing And Discontinued Operation
525,000
544,000
Total Expenses
3,282,000
3,328,000
Total Operating Income As Reported
830,000
800,000
Diluted Average Shares
309,300
310,000
Basic Average Shares
309,100
309,700
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
525,000
544,000
Net Income Common Stockholders
525,000
544,000
Net Income
525,000
544,000
Net Income Including Noncontrolling Interests
525,000
544,000
Net Income Continuous Operations
525,000
544,000
Tax Provision
131,000
20,000
Pretax Income
656,000
564,000
Other Income Expense
-26,000
-99,000
Other Non Operating Income Expenses
27,000
-1,000
Special Income Charges
-1,000
-7,000
Gain On Sale Of Business
1,000
0
Other Special Charges
-400
Restructuring And Mergern Acquisition
2,000
7,000
Earnings From Equity Interest
-52,000
-91,000
Net Non Operating Interest Income Expense
-149,000
-144,000
Interest Expense Non Operating
151,000
146,000
Interest Income Non Operating
2,000
2,000
Operating Income
831,000
807,000
Operating Expense
916,000
924,000
Other Operating Expenses
30,000
30,000
Provision For Doubtful Accounts
12,000
13,000
Depreciation Amortization Depletion Income Statement
461,000
458,000
Depletion Income Statement
129,000
135,500
Depreciation And Amortization In Income Statement
329,000
307,300
Amortization
53,000
48,000
Amortization Of Intangibles Income Statement
53,000
48,000
Depreciation Income Statement
276,000
259,300
Selling General And Administration
413,000
423,000
General And Administrative Expense
413,000
423,000
Other Gand A
112,000
138,000
Salaries And Wages
301,000
285,000
Gross Profit
1,747,000
1,731,000
Cost Of Revenue
2,366,000
2,404,000
Total Revenue
4,113,000
4,135,000
Operating Revenue
4,008,000
3,607,000
Balance Sheet
2026
2025
2024
Treasury Shares Number
6,400
5,000
Ordinary Shares Number
307,384
308,000
Share Issued
313,784
313,000
Net Debt
13,746,000
13,505,000
Total Debt
14,087,000
13,806,000
Tangible Book Value
-5,593,000
-5,402,000
Invested Capital
25,844,000
25,549,000
Working Capital
-1,230,000
-1,405,000
Net Tangible Assets
-5,593,000
-5,402,000
Capital Lease Obligations
223,000
225,000
Common Stock Equity
11,980,000
11,968,000
Total Capitalization
25,297,000
24,953,000
Total Equity Gross Minority Interest
11,981,000
11,969,000
Minority Interest
1,000
1,000
Stockholders Equity
11,980,000
11,968,000
Gains Losses Not Affecting Retained Earnings
-31,000
-29,000
Other Equity Adjustments
-31,000
-29,000
Treasury Stock
1,336,000
1,000,000
Retained Earnings
11,493,000
11,161,000
Additional Paid In Capital
1,851,000
1,833,000
Capital Stock
3,000
3,000
Common Stock
3,000
3,000
Total Liabilities Net Minority Interest
22,619,000
22,397,000
Total Non Current Liabilities Net Minority Interest
18,879,000
18,469,000
Other Non Current Liabilities
92,000
98,000
Derivative Product Liabilities
49,000
46,000
Employee Benefits
20,000
20,000
Non Current Pension And Other Postretirement Benefit Plans
20,000
20,000
Non Current Deferred Liabilities
2,064,000
2,009,000
Non Current Deferred Taxes Liabilities
1,936,000
1,884,000
Long Term Debt And Capital Lease Obligation
13,491,000
13,162,000
Long Term Capital Lease Obligation
174,000
177,000
Long Term Debt
13,317,000
12,985,000
Long Term Provisions
3,163,000
3,134,000
Current Liabilities
3,740,000
3,928,000
Current Deferred Liabilities
480,000
496,000
Current Deferred Revenue
480,000
496,000
Current Debt And Capital Lease Obligation
596,000
644,000
Current Capital Lease Obligation
49,000
48,000
Current Debt
547,000
596,000
Other Current Borrowings
547,000
596,000
Current Provisions
443,000
431,000
Payables And Accrued Expenses
2,221,000
2,357,000
Current Accrued Expenses
606,000
576,000
Interest Payable
122,000
109,000
Payables
1,615,000
1,781,000
Dividends Payable
192,000
193,000
Total Tax Payable
227,000
214,000
206,000
Accounts Payable
1,196,000
1,374,000
Total Assets
34,600,000
34,366,000
Total Non Current Assets
32,090,000
31,843,000
Other Non Current Assets
339,000
306,000
Non Current Prepaid Assets
164,000
159,000
Non Current Deferred Assets
218,000
224,000
Non Current Accounts Receivable
89,000
90,000
Financial Assets
36,000
32,000
Investments And Advances
769,000
815,000
Goodwill And Other Intangible Assets
17,573,000
17,370,000
Other Intangible Assets
647,000
655,000
Goodwill
16,926,000
16,715,000
Net PPE
12,902,000
12,847,000
Accumulated Depreciation
-15,279,000
-14,824,000
Gross PPE
28,181,000
27,671,000
Construction In Progress
589,000
749,000
Other Properties
11,845,000
11,543,000
Machinery Furniture Equipment
12,050,000
11,785,000
Buildings And Improvements
2,672,000
2,578,000
Land And Improvements
1,025,000
1,016,000
Current Assets
2,510,000
2,523,000
Other Current Assets
56,000
41,000
Prepaid Assets
108,000
131,000
Inventory
114,000
106,000
Receivables
2,114,000
2,169,000
Other Receivables
108,000
126,000
Taxes Receivable
89,000
146,000
Accounts Receivable
1,917,000
1,897,000
Allowance For Doubtful Accounts Receivable
-60,000
-66,000
Gross Accounts Receivable
1,977,000
1,963,000
Cash Cash Equivalents And Short Term Investments
118,000
76,000
Cash And Cash Equivalents
118,000
76,000
Cash Flow
2026
2025
2024
Free Cash Flow
751,000
404,000
Repurchase Of Capital Stock
-306,000
-266,000
Repayment Of Debt
-15,035,000
-10,567,000
Issuance Of Debt
15,310,000
10,819,000
Capital Expenditure
-476,000
-577,000
End Cash Position
327,000
Beginning Cash Position
249,000
225,000
Effect Of Exchange Rate Changes
-1,000
0
Changes In Cash
79,000
24,000
Financing Cash Flow
-238,000
-215,000
Cash Flow From Continuing Financing Activities
-238,000
-215,000
Net Other Financing Charges
-14,000
-7,000
Cash Dividends Paid
-193,000
-194,000
Common Stock Dividend Paid
-193,000
-194,000
Net Common Stock Issuance
-306,000
-266,000
Common Stock Payments
-306,000
-266,000
Net Issuance Payments Of Debt
275,000
252,000
Net Long Term Debt Issuance
275,000
252,000
Long Term Debt Payments
-15,035,000
-10,567,000
Long Term Debt Issuance
15,310,000
Investing Cash Flow
-910,000
-742,000
Cash Flow From Continuing Investing Activities
-910,000
-742,000
Net Other Investing Changes
-1,000
-1,000
Net Business Purchase And Sale
-436,000
-167,000
Sale Of Business
1,000
4,000
Purchase Of Business
-437,000
-171,000
Net PPE Purchase And Sale
-473,000
-574,000
Sale Of PPE
3,000
3,000
Purchase Of PPE
-476,000
-577,000
Operating Cash Flow
1,227,000
981,000
Cash Flow From Continuing Operating Activities
1,227,000
981,000
Change In Working Capital
103,000
-269,000
Change In Other Current Liabilities
30,000
-142,000
Change In Payables And Accrued Expense
49,000
-37,000
Change In Payable
49,000
-37,000
Change In Account Payable
49,000
-37,000
Change In Prepaid Assets
49,000
-81,000
Change In Receivables
-25,000
-9,000
Changes In Account Receivables
-25,000
Other Non Cash Items
23,000
50,000
Stock Based Compensation
11,000
Provisionand Write Offof Assets
7,100
Deferred Tax
33,000
139,000
Deferred Income Tax
33,000
139,000
Depreciation Amortization Depletion
491,000
486,000
Depreciation And Amortization
491,000
486,000
Depreciation
491,000
486,000
Operating Gains Losses
52,000
91,000
Earnings Losses From Equity Investments
52,000
91,000
Net Income From Continuing Operations
525,000
544,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $4.0B▲ $4.1B+2.6%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 42.3%▲ 42.5%+0.2pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 20.7%▲ 20.2%-0.5pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 12.3%▲ 12.8%+0.4pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$4.1B/qtr (≈$16.5B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.67x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$751M
vs Positive
Operating Cash Flow
$1.2B
Latest quarter · Buffett's cash reality check
ROIC
2.1%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
5.3x
Net Assets: $12.0B
Peers & Industry
No auto-detected peers for Waste Management. You can manually compare RSG against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.13%
Low — management has little skin in the game
Return on Equity (ROE)
4.4%
Weak — poor returns on equity
Return on Assets (ROA)
1.5%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$875M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+2.0% YoY
Debt is roughly stable
Leadership Team
Jon Vander Ark
President, CEO & Director
Age 50
Pay: $3,732,527
0.711% of net income
Brian DelGhiaccio
Executive VP & CFO
Age 51
Pay: $1,502,948
0.286% of net income
Gregg Brummer
Executive VP & COO
Age 58
Pay: $1,423,202
0.271% of net income
Aaron Evans
Vice President of Investor Relations
Nicole Giandinoto CFA, CTP
Senior Vice President of Business Transformation
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
5.49%
16,879,247
Vanguard Capital Management LLC
4.24%
13,058,206
State Street Corporation
3.18%
9,793,456
Price (T.Rowe) Associates Inc
2.05%
6,300,709
Capital International Investors
1.73%
5,333,574
Morgan Stanley
1.64%
5,035,178
Geode Capital Management, LLC
1.59%
4,887,337
FMR, LLC
1.51%
4,650,944
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.41
Low volatility — more stable than the market
Short Interest
1.8% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
1.18x
Moderate leverage
Current Ratio
0.67x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $196.41Current: $204.94High: $251.17
Currently at 16% of 52-week range
Republic Services, Inc. (RSG) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $38.59. Margin of safety: 0%. Gross profit margin: 42.5%. Operating margin: 20.2%. Net margin: 12.8%. Market cap: $63.1B. Sector: Industrials. Industry: Waste Management. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.