Waste Management’s stock price slid 8% on July 25 after the wide-moat-rated waste collection and disposal leader reported second-quarter revenue and adjusted earnings per share that fell short of FactSet consensus estimates. Revenue grew 5.5% year over year to $5.4 billion, and adjusted EPS increased 20% to $1.82, but both metrics fell 0.5% shy of consensus.
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 is becoming increasingly difficult to find quality tuck-in acquisitions that move the needle for WM, which opens up the temptation to overspend on a large, complex and/or noncore transactions.
|
Metric
|
WM
|
SRCL
|
RSG
|
|---|---|---|---|
Price/Earnings (Normalized) | 28.38 | 28.95 | 31.66 |
Price/Book Value | 10.59 | 2.14 | 5.43 |
Price/Sales | 3.79 | 2.06 | 3.86 |
Price/Cash Flow | 15.17 | 19.98 | 15.35 |
|
Metric
|
WM
|
SRCL
|
RSG
|
|---|---|---|---|
Quick Ratio | 0.95 | 1.02 | 0.54 |
Current Ratio | 1.07 | 1.13 | 0.59 |
Interest Coverage | 7.29 | 1.79 | 5.45 |
|
Metric
|
WM
|
SRCL
|
RSG
|
|---|---|---|---|
Return on Assets (Normalized) | 8.51% | 1.05% | 6.15% |
Return on Equity (Normalized) | 39.30% | 2.23% | 17.97% |
Return on Invested Capital (Normalized) | 13.78% | 2.34% | 9.93% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Republic Services Inc
RSG
| Zrsqppf | Xrwn | $59.8 Bil | |||
| Waste Connections Inc
WCN
| Lpphwyhnt | Lrc | $45.3 Bil | |||
| Veolia Environnement SA
VEOEF
| — | Xvkcfx | $22.2 Bil | |||
| Veolia Environnement SA ADR
VEOEY
| Zpnxqzqh | Cvqbyn | $22.2 Bil | |||
| GFL Environmental Inc
GFL
| — | Zppb | $14.3 Bil | |||
| Clean Harbors Inc
CLH
| Xccwvwvgk | Ndcx | $12.1 Bil | |||
| Fomento de Construcciones y Contratas SA
FMOCF
| — | Ffzpj | $6.5 Bil | |||
| Casella Waste Systems Inc Class A
CWST
| — | Qzhxvn | $5.9 Bil | |||
| Stericycle Inc
SRCL
| Njzvdmcgy | Jkthp | $5.4 Bil |
