Based on the provided data and current market conditions, here's an analysis of RSG's valuation:
Valuation Metrics
RSG currently shows signs of being fairly valued based on multiple metrics:
Financial Performance
The company demonstrates solid financial health with:
- Consistently improving gross margins from 30.54% to 31.58% over three quarters
- Strong net margin expansion from 11.75% to 13.88%
- Steady revenue growth reaching $4.08B in latest quarter
- ROE improvement to 18.28% showing efficient capital utilization
Technical Analysis
The stock is currently trading near its Fibonacci pivot point of $208.53, with:
- RSI at 69.87 indicating approaching but not yet overbought conditions
- MACD at 1.15 suggesting positive momentum
- SMA20 at $205.32 providing nearby support
Valuation Assessment
- P/E ratio has slightly improved from 33.63 to 32.13
- EV/EBITDA at 15.49 is in line with industry standards
- Price-to-Sales ratio steady at 4.0
- Current dividend yield of 1.09% provides modest income
Based on these metrics, RSG appears to be trading at fair value rather than being overvalued. The company's improving operational efficiency, consistent margin expansion, and solid technical indicators support the current valuation levels.