7. Republic Services, Inc. (NYSE:RSG)
5-year Beta (monthly): 0.71
Number of Hedge Fund Holders: 48
Republic Services, Inc. (NYSE:RSG) is a major player in the environmental services sector, primarily focused on providing comprehensive recycling and waste management solutions. The company offers a wide range of services, including non-hazardous solid waste collection, advanced recycling, hazardous waste treatment, and emergency response services.
It has 13 million customers and averages 5 million pickups daily. Moreover, It has a fleet of 17,000 trucks, and 75 recycling centers, and has recycled 2 billion pounds of organics. The company offers comprehensive waste management solutions that prioritize environmental responsibility.
Its extensive infrastructure includes numerous landfills, recycling centers, and energy projects, which solidifies its role as an important player in promoting responsible waste disposal and resource recovery.
Republic Services (NYSE:RSG) is quite focused on its digital transformation, especially through its RISE platform to improve route optimization and safety performance. Additionally, the anticipated implementation of the MPower fleet management system is projected to generate $20 million in annual cost savings, which further strengthens the company’s profitability.
The company has already realized $45 million in benefits from advanced recycling technologies that reduce contamination and enhance operational efficiency. It also expects to add more than 50 electric vehicles to its fleet by year-end and has entered agreements with municipalities for electric collection services, which align with its environmental responsibility while creating growth avenues.
In Q2, Republic’s (NYSE:RSG) stock was owned by 48 hedge funds, valued at $1.65 billion, which brings the company to the 7th spot on our list of best low beta stocks to buy. Impax Asset Management is the company’s most significant shareholder with 1.44 million shares, worth $280 million, as of June 30.
ClearBridge Investments stated the following regarding Republic Services, Inc. (NYSE:RSG) in its Q2 2024 investor letter:
“We added two new names to the portfolio in the quarter. Republic Services, Inc. (NYSE:RSG) is a waste disposal company in the industrials sector whose services include non-hazardous solid waste collection, waste transfer, waste disposal, recycling and energy services. It is a stable-through-the-cycle compounder in a consolidated industry. The company’s end market is resilient, which gives us some confidence in the stability of its earnings through a recession. In the next few years, cash flow should grow at the high end of the range as Republic Services benefits from high-returning sustainability investments in polymer recycling and renewable natural gas, which also improve the company’s emission and circularity profile.
Republic Services continues to set ambitious goals around sustainability targets, such as increasing its renewable energy generation by 50% through the beneficial reuse of biogas. In addition, its 74 recycling centers process five million tons of materials per year and include a major polymers center for plastics. Notably, it is the first North American waste and recycling company with an emissions reduction goal approved by the Science-Based Targets initiative (SBTi).”
