Valuentum Exclusive Analysis for the Discerning Investor

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Apr 27, 2021

Trash Is Cash
Image Source: Clyde Robinson. Increasingly valuable disposal capacity that is only becoming scarcer and pricing power across collection and disposal operations that keep inflationary pressures at bay are just two of the reasons why we like the municipal solid waste space. Waste Management’s first-quarter performance showed that the U.S. municipal solid waste industry remains very healthy while free cash flow generation across the group will remain robust and perhaps grow stronger as the U.S. economy continues its recovery. We include Waste Management's peer Republic Services as one of our favorite ideas in the Dividend Growth Newsletter portfolio.

Feb 24, 2021

Garbage Hauler Republic Services Expects Record Year in 2021
Image Source: Republic Services. There are few things as certain as death and taxes, but garbage may be one of them. One of our favorite ideas within the municipal solid waste coverage is Republic Services, a holding in the Dividend Growth Newsletter portfolio. We love its free cash flow generating ability, visibility into future revenue, enviable position with respect to disposal capacity, CPI-based book of business, and exposure to fast-growing economic areas in the US.

Nov 27, 2020

Republic Services Is a Great Company
Image Shown: Shares of Republic Services Inc have been on an upward march over the past six months as investors warmed back up to the waste management company. We appreciate the company’s stable cash flow profile and high quality earnings, and we continue to include shares of RSG at a modest weighting in the Dividend Growth Newsletter portfolio. The waste management company Republic Services has proven to be incredibly resilient during the ongoing coronavirus (‘COVID-19’) pandemic. We are big fans of its stable cash flow profile and high quality earnings. According to Republic Services’ 2019 Annual Report the firm “is the second largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and environmental services in the United States, as measured by revenue.” The firm operated in over 40 US states and Puerto Rico as of the end of 2019. We include Republic Services in our Dividend Growth Newsletter portfolio at a modest weighting. Pricing strength (assisted by industry consolidation), revenue growth (assisted by M&A activity), and the potential for meaningful margin expansion (assisted by economies of scale) underpins Republic Services’ cash flow growth trajectory. Shares of RSG yield ~1.7% as of this writing.

Nov 6, 2020

Garbage Hauler Republic Services Doesn’t Disappoint in Third Quarter
Image: Republic Services. We love companies with strong future expected free cash flow generation, especially ones that have strong net cash positions. Republic Services doesn’t have the strongest balance sheet, with a rather large net debt position emanating from rolling up a number of independent garbage haulers in the past, including Allied Waste, but it’s not something we’re worried about, given its strong and predictable free cash flow, contractual revenue visibility in its collection operations, and pricing power at its disposal facilities. We’re reiterating the high end of our fair value estimate range of $96 per share.