Republic Services EPS Growth of 13.2% Outpaces 5.7% Revenue Increase
CWST•Republic Services’ EPS has compounded at 13.2% annually over three years, outpacing 5.7% revenue growth while net margin rose from 10.8% to 13.0% and share count fell 2.4%. The stock is down 16.5% over the past year despite a trailing P/E of 29.7 within its decade range.
1. EPS Growth Outpacing Revenue
Over the past three years, Republic Services’ earnings per share have compounded at a 13.2% annual rate, significantly exceeding its 5.7% revenue growth during the same period. This divergence highlights the company’s ability to generate shareholder value even with tepid top-line expansion.
2. Margin Expansion and Share Reduction
Republic Services improved operational efficiency, lifting net margin from 10.8% three years ago to 13.0% over the last twelve months. Concurrently, the share count has declined by approximately 2.4%, further concentrating earnings among fewer shares and boosting EPS.
3. Market Valuation Context
Despite a 16.5% stock decline over the past twelve months, the company’s trailing P/E ratio stands at 29.7, comfortably within its 10-year range of 16.5 to 36.4. This suggests the market is pricing in moderate expectations rather than peak optimism.
