3rd Stock Pitch by the Industrials team.

1. Industrial Team | LU Ghosal Investment Fund

2. Business Description01
Competitors Description02
Industry Description03
Valuation04
Agenda
Technical Analysis05

3. Business
Description

4. The Company
Republic Services, Inc. is an industry leader in U.S.
recycling and non-hazardous solid waste disposal

5. Company Timeline
2019
Donald Slager
becames CEO and
president
Republic Industries
was created as a waste
disposal firm
19981981 2008 2011 2020
Jon Vander Ark
took over as
president
Republic Services was
established
Listed on the New York
Stock Exchange
Acquisition of Allied
Waste Industries
Second largest
waste management
company in the U.S
Fortune 500 Company
Barron’s 100 Most
Sustainable Companies
Forbes Best Employers for
Women

6. Stock Profile
Stock
Price Beta
Market
Cap
Revenue
EV/EBITDA
$ 98.82 0.49
$ 31.53 B
$ 10.3 B
14.26

7. Corporate Governance
Donald W. Slager Jon Vander ArkManuel Kadre
CEO, "The Don", worked in
waste management since
teenager, at RSG for 30+
years. Market cap doubled
during his time as CEO.
Joined in 2014, becomes
chairman in 2017. Also serves
on board of Home Depot and
Mednax. Previous CEO
experience in Gold Coast
Carribean Importers.
President. Previous COO,
oversaw the rise of RSG's
truck fleet to becoming 7th
largest vocational fleet in
country. Focused on logistical
aspect of business.

8. ESG
Safety
People
Operations
Materials Management
Communities
• One of CEO's main priorities
• Reduced OSHA recordable rate by 7% year on year
• 40% better safety performance than industrial avg, despite
80% of staff frequently on American roads.
• 2018 reduced 3% of absolute fleet emissions
• 150,000 tons of additional recycling capability in 2018
• 85% employee engagement, above indus. Avg.
• ROAD-EO competitions to encourage competition for drivers
and technicians to drive safely and efficiently
• Recycled 6m recyclables last year, plans to increase
• Initiatives to teach people waste separation, diverting food
surplus and organic waste to create animal feed
• Runs its own charity that aims to revitalize poor rural
communities
• Hurricane relief to cities such as St. Louis, Florence, and
Michael

9. SWOT Analysis
Strengths Weaknesses
• Strong performance when entering new
markets, eg Energy and Recyclables
• Large and efficient distribution and collection
network, spanning across the USA
• LT debt increasing over past few years,
increasing RSG's exposure to changes in
interest rates
Opportunities Threats
• Growing market / trend in recycling and waste
management in America
• New environmental policies and government
agreements can widen RSG's operations
• Changes in general economic activity can
impact revenue, especially consumer
consumption and industrial output
• Stiff competition from local
waste collection services (whom have
certain benefits from local govts) and
Waste Management Inc

10. Competitor
Description

11. Covanta Holding Corporation operates
energy-from-waste facilities and energy
generation infrastructure as renewable
energy production facilities. It operates in
the Americas, Europe, and Asia.
Clean Harbors Inc provides
environmental industrial and
energy services to chemical;
refineries and oil sands. The
company has presence in Canada,
the US, Mexico.
Waste Connections Inc is a waste
management company that offers
integrated solid waste management
services as well as non-hazardous oilfield
waste treatment in the Western and
Southern US and Canada.
Casella Waste Systems, Inc. provides
services in solid waste collection, transfer,
disposal, recycling to chains and multi-site
retailers, residential, commercial, municipals in
Vermont, New Hampshire, New York,
Massachusetts, Maine and Pennsylvania,
the US.
Waste Management, Inc. provides
integrated waste management
services in the US, Puerto Rico, and
Canada.
The company provides collection,
transfer, disposal, and recycling of waste
including the creation of energy.
US Ecology, Inc. provides
hazardous solid waste
collection as solid waste
treatment, waste waster
management, thermal
recycling, metal recovery in
the United States.

12. Size and Multiples
$52bn in Market Cap
P/E: 32.28 P/B: 7.58
Sales: $15bn
Content Here
$26bn in Market Cap
P/E: 48.8 P/B: 3.98
Sales: $4.2bn
P/E: 54.2 P/B: 3.91
$4bn in Market Cap
Sales: $3.4bn
$2.3bn in Market Cap
P/E: 367 P/B: 23.33
Sales: $742mln
Content Here
Sales: $1.89bn
P/E: 262 P/B: 5.42
$2bn in Market Cap
$1.5bn in Market Cap
P/E: 22.2 P/B: 2.87
Sales: $611mln
$31bn in Market Cap
P/E: 30.08 P/B: 3.94
Sales: $10bn

13. Operating Efficiency
Profit Margin
EBIT Margin
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
Casella Waste
System Inc
Clean Harbords
Inc
Covanta
Holding Corp
Republic
Services Inc
US Ecology Inc Waste
Connections
Inc
Waste
Management
Inc
Industry
0.97%
1.98%
7.87%
10.32%
8.73%
11.10%
12.91%
5.58%
4.74%
5.53%
2.57%
17.35%
13.09%
17.31%
18.34%
9.03%
Profit Margin EBIT Margin

14. Profitability
ROCE
ROE
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Casella Waste
System Inc
Clean Harbords
Inc
Covanta
Holding Corp
Republic
Services Inc
US Ecology Inc Waste
Connections
Inc
Waste
Management
Inc
Industry
1.10% 2.10%
5.00% 5.60% 6.20%
4.76%
7.60%
4.13%0.00%
5.54%
33.48%
13.38% 14.50%
8.47%
25.03%
16.73%
ROCE ROE

15. Leverage
0%
100%
200%
300%
400%
500%
600%
Casella Waste
System Inc
Clean Harbords
Inc
Covanta
Holding Corp
Republic
Services Inc
US Ecology Inc Waste
Connections
Inc
Waste
Management
Inc
Industry
Negative
134.40%
512%
107.02% 101.33%
63%
190%
93.21%
Leverage

16. Industry
Overview

18. Sector Description
SOLID
WASTE
NON-
HAZARDOUS
WASTE
Municipal
Waste
HAZARDOUS
WASTE
Industrial
Waste

19. - iShares U.S. Industrials ETF (IYJ)
- S&P 500 (GSPC)

20. U.S. WASTE MANAGEMENT INDUSTRY
Each year, approximately 7.6 billion tons
of industrial solid waste are generated
and disposed of at a broad spectrum of
American industrial facilities.
Americans generate approximately 258
million tons of Municipal waste annually,
more even than the pre-recession high of 255
million in 2007.
Industrial
- $1
Trillion
Municipal
- $370
Billion
$1.4
Trillion

21. U.S. WASTE MANAGEMENT INDUSTRY
Sector Revenue Drivers:
- New fee structures implementation.
- Education among the consumers on how to
properly sort recyclables.
- Technology is slowly beginning to drive
changes.
Sector Cost Drivers:
- Markets shrink and stricter environmental standards lead
to higher recycling processing costs.
- Labor shortages.
- High costs of development and maintenance of landfills.

22. U.S. WASTE MANAGEMENT INDUSTRY
Opportunities:
- Increasing consumer spending and production
influences the amount of waste produced.
- Taking advantage of data analytics to maximize
worker output etc.
- The smart waste management market is predicted
to grow at a compound annual growth rate of 16.5%
through 2023.
Weaknesses:
- Diminishing abroad markets, such as China or
India, force to increase costs of storing waste.
- If unemployment continues to decline, attracting
and retaining reliable workers could become ever
more challenging.

23. The Valuation

24. Technical Analysis
• Indicators
• Monte Carlos Simulations

27. Technical
Indicators
In summary, 15 out of the
observed 24 indicators point
to Buying. 2 point to selling
and 7 remain neutral.

28. Monte Carlo
Simulation

29. Monte Carlo Simulation
Content Here
Content Here Content Here
Variables/Conditions
• No. of Simulations: 10
• Length of Historical data used: 6mths
• Predicted future timeframe: 6mths
Results
• Highest simulated price: £130.71
• Lowest simulated price: £ 86.99
• No. of simulations over current sp*: 7
• No. of simulations below current sp*: 3
• sp* = Shareprice

30. Monte Carlo Simulation
Content Here
Variables/Conditions
• No. of Simulations: 10,000
• Length of Historical data used: 1year
• Predicted future timeframe: 6mths
Results
• Highest simulated price: $144.39
• Lowest simulated price: $64.58
• No. of simulations over current sp*: 4776
• No. of simulations below current sp*: 5224
• sp* = Shareprice

31. Monte Carlo Simulation
Content Here
Variables/Conditions
• No. of Simulations: 100,000!!!
• Length of Historical data used: 1year
• Predicted future timeframe: 6mths
Results
• Highest simulated price: $169.66
• Lowest simulated price: $ 63.02
• No. of simulations over current sp*: 48,044
• No. of simulations below current sp*: 51,956
• sp* = Shareprice

32. Industrial Team | LU Ghosal Investment Fund
Thank you!