Discover Top Posts Tagged with #$wm

The top trash industry player is well-positioned to weather even its worst dreams.

EARNING UPDATE $WM Waste Management, Inc. for quarter ending q_Jun18 - Revenue fell but Margins expanded

EARNING UPDATE $WM Waste Management, Inc. for quarter ending q_Jun18 – Revenue fell but Margins expanded

[s2If !current_user_can(access_s2member_level0)]Please login to read the earning update on WM [lwa][/s2If][s2If current_user_can(access_s2member_level0)]Waste Management, Inc. reported earnings (EPS) of 1.15 per share for the quarter ending q_Jun18. This is vis-vis 0.91 per share for the previous quarter ending q_Mar18, a growth of 26.4 %. Compared to last year same quarter (q_Jun17), earnings…

View On WordPress

#$WM

$WM 2018-07-25 : Transcripts- WM Edited Transcript of WM earnings conference call

[s2If !current_user_can(access_s2member_level0)] Please login to read the transcript. [lwa] [/s2If][s2If current_user_can(access_s2member_level0)]”

Q2 2018 Waste Management Inc Earnings Call

HOUSTON Jul 26, 2018 (Thomson StreetEvents) — Edited Transcript of Waste Management Inc earnings conference call or presentation Wednesday, July 25, 2018 at 2:00:00pm GMT

TEXT version of Transcript

=====…

View On WordPress

#$WM

$WM 2018-07-25 : Transcripts- Edited Transcript of WM earnings conference call

[s2If !current_user_can(access_s2member_level0)] Please login to read the transcript. [lwa] [/s2If][s2If current_user_can(access_s2member_level0)]”

Q2 2018 Waste Management Inc Earnings Call

HOUSTON Jul 26, 2018 (Thomson StreetEvents) — Edited Transcript of Waste Management Inc earnings conference call or presentation Wednesday, July 25, 2018 at 2:00:00pm GMT

TEXT version of Transcript

=====…

View On WordPress

#$WM

EARNING UPDATE $WM Waste Management, Inc. for quarter ending q_Dec17 - Revenue grew, Margins expanded

EARNING UPDATE $WM Waste Management, Inc. for quarter ending q_Dec17 – Revenue grew, Margins expanded

[s2If !current_user_can(access_s2member_level0)]Please login to read the earning update on WM [lwa][/s2If][s2If current_user_can(access_s2member_level0)]Waste Management, Inc. reported earnings (EPS) of 2.05 per share for the quarter ending q_Dec17. This is vis-vis 0.87 per share for the previous quarter ending q_Sep17, a growth of 135.6 %. Compared to last year same quarter (q_Dec16), earnings…

View On WordPress

#$WM

The “Sell in May” Myth Busted

Looking back on May 2016, the “Sell in May” myth proved to be just that – a myth that would have proven disadvantageous to investors had they followed this ‘logic.’ In May, the S&P 500 rose a little over 1.5%, and global stocks, as measured by the MSCI World were essentially flat. Markets don’t pay any attention to calendars, so the strategy of selling stocks just because the month of May arrived is like wearing a raincoat all month because it historically rains a lot. The market continued its recovery from the tumultuous January, as negatives began to fade and mixed economic data displays as many positives as negatives. Earnings have been a soft spot, but we expect them to recover in the back half of the year. Stay steady, review investing adages with skepticism and hang your hat on reliable data.

Download Zacks Latest Stock Market Outlook Report

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.

Zacks Investment Management, Inc. is a wholly-owned subsidiary of Zacks Investment Research. Zacks Investment Management is an independent Registered Investment Advisory firm and acts an investment manager for individuals and institutions. Zacks Investment Research is a provider of earnings data and other financial data to institutions and to individuals. This communication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any securities or product, and does not constitute legal or tax advice. The information contained herein has been obtained from sources believed to be reliable but we do not guarantee accuracy or completeness. Zacks Investment Management, Inc. is not engaged in rendering legal, tax, accounting or other professional services. Publication and distribution of this article is not intended to create, and the information contained herein does not constitute, an attorney- client relationship. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel.

#$AG #$AAPL #$WM #T #$VNQ #$QRT

Not Throwing Away This Garbage Hauler

A picture of Republic Services’ Apex landfill in Las Vegas -- the busiest one in the country. Image Source: Valuentum Securities

It may not be a glamourous business but it is a good one.

Pricing emanates from disposal operations – that’s what industry experts say. Waste has to go somewhere, and therefore whoever has the disposal operations sets the bar with respect to pricing from transfer facilities all the way through collections. After all, garbage pick-up operators won’t be in business for long if they pay more to dispose of waste than they charge to pick it up. Industry economics in the waste industry are relatively easy to understand.

As for the players, Waste Management and Republic Services have the largest disposal operations in the US. At the end of 2014, Waste Management owned or operated 252 landfill sites, the largest network of landfills in the country. That number stands at 189 for Republic Services and 58 at number three, Waste Connections. These players dominate the municipal solid waste industry and will for some time to come. We view disposal pricing as having oligopolistic tendencies, even if collection operations face some of the most intense pricing competition of any industry.

Let’s first start with our concerns. For those that remember Allied Waste, which was bought by Republic in mid-2008, early last decade the company suffered from significant underinvestment of its truck and equipment fleet as it was saddled with debt from its acquisition of Browning-Ferris in 1999. We’ve always been of the debt-averse persuasion, even for steady-eddy businesses like those in the waste industry, which are often more cyclical than many observers understand. For one, roll-off volumes, which can be as much as one third of collection operations, ebb and flow with the construction cycle, while commercial collection is tied to business formation and health.

Regardless of how recession-resistant the waste industry may be, net debt is still something worth watching closely. At Waste Management, net debt stood at $8.83 billion at the end of the second quarter of 2015, while that mark stood at $7.45 billion at Republic Services. Waste Connections is a much smaller player, but it, too, holds a net debt position of about $1.96 billion at the end of March 2015. Granted, it is not the size of the debt load that matters, but whether a company has the capacity to continue to service it, but leverage can have significant implications on a company’s share price during the trough of the economic cycle and especially during periods of tightening credit conditions. It should not be surprising that companies with the highest levels of leverage suffer the worst during challenging economic and credit conditions.

That having been stated clearly, it’s fantastic to see industry players maintaining discipline as they collectively push prices higher. In Waste Management’s second-quarter report, the firm noted that core price expanded 4.1%, while in the same quarter, Republic Services drove core price 3.8% higher. Such strength translated into an improvement in both firms’ EBITDA margins on a year-over-year basis during the period. At Waste Management, free cash flow increased $245 million in the second quarter of 2015, after excluding proceeds from divestitures in 2014, while Republic upped its adjusted free cash flow guidance for all of 2015, to the range of $720-$745 million (was $710-$740 million). Lower diesel fuel prices are helping and may be here to stay.

We’re often asked why we like Republic better than Waste Management, and the answer is that we like both companies. However, we chose Republic because the firm registered a 9 on the Valuentum Buying Index in July 2012 when it was trading in the mid-$20s per share (it's now over $40 per share), and we still think the company has a lot of value to extract from the Republic-Allied combination. We don't dislike Waste Management or Waste Connections for that matter. We just like Republic a bit more, that's all. As I said of the Republic-Allied deal back in 2008:

"The value of the landfills is going to do nothing but increase down the road," said Brian Nelson…in Chicago. "Ten years down the road, we're going to be looking back at this transaction and saying this is a pretty savvy move because of suburban sprawl, because of population growth."

We continue to like Republic, and while its Dividend Cushion ratio speaks of heightened risk due to its massive debt position, we won’t be disposing of this Best Ideas Newsletter portfolio holding anytime soon. Don’t expect huge returns from this idea, but Republic Services remains our favorite play in the waste industry.

Read more about Valuentum’s dividend growth analysis here. Thank you for reading!

Disclaimer: This article or report and any links within are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum is not responsible for any errors or omissions or for results obtained from the use of this article and accepts no liability for how readers may choose to utilize the content. Assumptions, opinions, and estimates are based on our judgment as of the date of the article and are subject to change without notice. For more information about Valuentum and the products and services it offers, please contact us at [email protected].

#$wm #$wcn #$rsg