Republic Services EPS Up 13.2% Versus 3.2% Revenue Growth Slowdown
RSG•Republic Services' EPS has compounded at 13.2% annually over three years, outpacing its 5.7% revenue growth over the same period despite a slowdown from 6.1% to 3.2% top-line expansion. During that time, net margin rose from 10.8% to 13.0% and share count fell 2.4%, driving per-share value.
1. Earnings Compounding Outpacing Sales
Republic Services has achieved a 13.2% compound annual growth rate in earnings per share over the past three years, surpassing its 5.7% revenue growth. This divergence highlights the company's ability to drive per-share returns even as top-line expansion decelerated from 6.1% to 3.2%.
2. Margin Expansion and Share Reduction
Over the same three-year period, Republic Services improved its net margin from 10.8% to 13.0% through operational efficiency gains. Concurrently, the company repurchased shares, reducing its share count by 2.4%, which amplifies earnings per remaining share.
3. Valuation Within Historical Range
The trailing price-to-earnings ratio of 29.7 falls comfortably within the company's 10-year range of 16.5 to 36.4, suggesting current market valuation reflects neither peak optimism nor deep pessimism. Investors should monitor whether the gap between EPS and revenue growth persists as a signal of durable shareholder value creation.
