WM's third-quarter results reinforce our views on the trajectory of pricing growth in the core collection and disposal business. The firm reported adjusted earnings per share of $2.15, 4.9% higher on a year-over-year basis.
WM has a stable business model and enjoys a wide economic moat rooted in intangible assets (regulatory permits for landfills) and cost advantages (route density).
It's becoming increasingly difficult to find quality tuck-in acquisitions that move the needle for WM, which opens up the temptation to pay higher multiples for incremental M&A or overspend on large, complex, and noncore transactions.
|
Metric
|
WM
|
RSG
|
WCN
|
|---|---|---|---|
Price/Earnings (Normalized) | 29.77 | 33.90 | 34.19 |
Price/Book Value | 9.61 | 6.12 | 6.09 |
Price/Sales | 3.69 | 4.39 | 4.91 |
Price/Cash Flow | 14.14 | 15.80 | 17.33 |
|
Metric
|
WM
|
RSG
|
WCN
|
|---|---|---|---|
Quick Ratio | 0.72 | 0.65 | 0.56 |
Current Ratio | 0.82 | 0.75 | 0.67 |
Interest Coverage | 5.24 | 5.34 | 5.00 |
|
Metric
|
WM
|
RSG
|
WCN
|
|---|---|---|---|
Return on Assets (Normalized) | 7.02% | 6.45% | 6.72% |
Return on Equity (Normalized) | 32.73% | 18.61% | 17.73% |
Return on Invested Capital (Normalized) | 11.96% | 10.54% | 9.74% |
|
1-Day Chart
|
Name
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Price
|
Morningstar Rating for Stocks
|
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|
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|
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United States