Republic Services EPS Rises 13.2% Annually Despite Revenue Growth Slowing
CLH•Republic Services’ earnings per share have compounded at a 13.2% annual rate over three years, outpacing its 5.7% revenue growth and driven by net margins rising from 10.8% to 13.0% and a 2.4% share count reduction. Its trailing P/E of 29.7 remains within its 10-year 16.5–36.4 range.
1. Earnings Growth Outpaces Sales
Over the past three years, Republic Services’ EPS has compounded at 13.2% annually, well above its 5.7% revenue growth over the same period, highlighting a disconnect between top-line momentum and per-share value creation.
2. Margin Expansion and Share Reduction
Net margins have climbed from 10.8% to 13.0% over the last twelve months, while share count has fallen by 2.4% in three years, amplifying EPS gains through efficiency and capital return.
3. Valuation Within Historical Range
The stock’s trailing price-to-earnings multiple of 29.7 sits comfortably between its 10-year low of 16.5 and high of 36.4, suggesting current market pricing reflects moderate expectations.
4. Outlook for Shareholder Value
Key for investors is whether margin improvement and share buybacks can sustain EPS growth without top-line acceleration, indicating the durability of Republic Services’ per-share compounding engine.
