WM
Waste Management Inc.
Industrial/Transportation
04/29/2014
Presented
| Date | 04/24/2014 |
| Price | $42.84 |
| Market Cap | $19.90B |
| Ent Value | $30.09B |
| P/E Ratio | 19.23x |
| Book Value | $12.79 |
| Div Yield | 2.8% |
| Shares O/S | 465.36M |
| Ave Daily Vol | 2,260,000 |
| Short Int | 3.23% |
Current
| Price | $213.79 |
| Market Cap | $85.80B |
| Waste Management, Inc. provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling and resource recovery, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services include picking up and transporting waste and recyclable materials from generated area to a transfer station, material recovery facility, or disposal site; and recycling operations comprise materials processing, plastics materials recycling, and commodities recycling services. In addition, the company provides recycling brokerage services consisting of managing the marketing of recyclable materials for third parties; electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment; and sustainability services to businesses and organizations, including in-plant services that provide full-service waste management solutions and consulting services at customers’ facilities. Further, it is involved in the development, operation, and promotion of landfill gas projects; rental portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and provision of street and parking lot sweeping services. Additionally, Waste Management, Inc. offers medical waste services; portable self-storage services; and fluorescent lamp recycling services, as well as is involved in the acquisition and development of oil and gas producing properties. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is headquartered in Houston, Texas. |
Highlights
Shares of Waste Management (WM) appear to be a “relatively low-risk short” at present levels. The presenter is bearish on the outlook for the company’s business, and stock, and sees the potential for the multiple (EV/ EBITDA) to contract from decade high levels (8.4x estimated 2014 EBITDA). In addition to trading at a relatively high EV/ EBITDA (which he noted appears to be “cheap” relative to peers), WM shares trade at over 18x forward EPS estimates, yet earnings are expected to grow just ~8-11%.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.