Introduction
Republic Services is a waste management and recycling company that provides waste collection services to homes and businesses in the U.S. It also provides non-hazardous industrial, municipal, construction and demolition (C&D) waste disposal solutions. The company operates through two segments: General Waste and Specialized Services.
What Is Republic Services?
Republic Services is a Fortune 500 company and the second-largest waste management services provider in North America. Founded in 1996, Republic Services was originally known as USA Waste. The company has grown from being a single truck operator to being one of the largest waste management companies in the United States, with over 25 million customers across six states and two Canadian provinces.
The company operates through three service lines: residential collection; municipal recycling; and commercial collection.
Features of the Republic Services Business Model
Republic Services is a waste collection and disposal company that provides services to businesses and governments in North America. Republic Services operates as a public company, with stock traded on the New York Stock Exchange (NYSE) under the ticker symbol RSG. The company’s headquarters are located in Phoenix, Arizona. It serves approximately 3 million customers across 47 states through a network of approximately 150 local companies.
Republic Services is also a member of the S&P 500 index and Fortune 500 list, which ranks companies by total revenue for its fiscal year ended December 31st (calendar year). As of September 2017, Republic Services had annual sales totals of $12 billion with over 29 thousand employees worldwide
Pros and Cons of the Republic Services Business Model
You might wonder what the pros and cons of Republic Services’ business model are. Let’s take a look.
- Pros:
- Republic Services has been around for over 50 years, which means they’ve had plenty of time to figure out how to be successful in the waste management industry. They’ve also spent those years learning how to make their customers happy and keep them coming back for more service by providing quality service at affordable prices.
- Cons:
- If you’re looking for a company that will provide you with hands-on service, then Republic Services probably isn’t the right choice for you. Their business model doesn’t allow them to give each customer personal attention because there’s just too many customers!
Future of Republic Services
Republic Services is a solid investment. The company has demonstrated an ability to grow sales and earnings in recent years, while keeping costs reasonably under control. It will likely continue to see revenue growth over the next few years as it increases its market share and expands into new areas.
In addition, Republic Services has a strong management team with a proven track record of success. The company’s current CEO is highly regarded across the industry, and he has been praised for his progressive leadership style and willingness to adapt his company’s strategy as needed. This could help Republic Services stay ahead of competitors that have become more adept at adapting quickly in recent years—a key advantage for any business looking to keep growing its share of the market in this fast-paced environment!
With all these factors taken together, investors should feel confident about investing their own hard-earned money into this great company!
Increased demand for recycling services will contribute to solid growth in the coming quarters.
The recycling market is growing in the United States. The Waste Management and Recycling Association (WMRA) estimates that the total volume of recyclable materials in the U.S. grew by 2% in 2017, after increasing by 3% in 20161.
Recycling services are becoming increasingly important to people’s lives as they want to do their part to help the environment and Republic Services is one of the biggest players in this market with its recycling division operating more than 150 collection facilities across North America2 .
The company’s $14 billion enterprise value gives it a high price-to-earnings ratio (P/E) ratio compared with other companies within its industry group at 17 times earnings compared with an average P/E ratio of 15 times for WMRA members3 . This indicates that investors would be willing to pay considerably higher prices when buying Republic Services’ shares than what they would cost if you were able to buy them from someone else on Wall Street who already owns them4 !
Conclusion
The Republic Services business model is a great example of how to run a successful waste management company. With the increasing demand for recycling services in the United States, this company has an opportunity to capitalize on their advantage as the largest recycler in America. The key is keeping costs low while maintaining high customer satisfaction scores over time which will be crucial if Republic Services wants to stay ahead of competitors like Waste Management Inc (NYSE: WM).
