DAR

Garbage Hauler Republic Services Beats Estimates, Raises Guidance

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Image Shown: Shares of newsletter portfolio idea Republic Services Inc have put up strong performance so far year-to-date in the face of volatile capital markets. By Callum Turcan Garbage hauler Republic Services Inc (RSG) reported second quarter 2022 earnings that beat both consensus top- and bottom-line estimates. The firm’s strong performance during the first half of this year gave management the confidence to boost Republic Services’ full-year guidance during its latest earnings update. We are huge fans of Republic Services’ stellar cash flow generating abilities, ample pricing power, and the “annuity-like” revenue streams it generates by offering essential services (various waste management services including collection, disposal, and more are required to maintain a healthy and well-functioning society). In May 2022, … Read more

Newsletter Portfolio Idea Republic Services Holding Up Quite Well in the Face of Major Headwinds

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Image Shown: Shares of Republic Services Inc have held up quite well over the past several months while equity markets swooned lower. By Callum Turcan On May 5, Republic Services Inc (RSG) reported first quarter 2022 earnings that beat both consensus top- and bottom-line estimates. The waste management firm is benefiting from its immense pricing power and volume growth. We continue to like Republic Services as an idea in both the Dividend Growth Newsletter and ESG Newsletter portfolios. Shares of RSG yield ~1.4% as of this writing. Earnings Update In the first quarter, Republic Services generated $3.0 billion in GAAP revenues (up 14% year-over-year). Please note that Republic Services defines its average yield “as revenue growth from the change in … Read more

Dividend Growth and ESG Favorite Republic Services Is Buying U.S. Ecology

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Image Shown: Republic Services Inc is one of our favorite waste management companies. On February 9, the company announced it was acquiring US Ecology Inc through an all-cash deal. US Ecology provides specialized waste management services and has an asset base that is nearly irreplaceable. We like the deal as it could generate meaningful cost saving and revenue synergies. Image Source: Republic Services Inc – February 2022 Infographic By Callum Turcan On February 9, one of our favorite waste management companies, Republic Services Inc (RSG), announced a deal to acquire U.S. Ecology Inc (ECOL) through an all-cash deal worth about $2.2 billion when including net debt considerations. Republic Services is paying $48 per share in cash to take over U.S. … Read more

General Mills Managing Inflationary Headwinds; Scaling Up Pets Business

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Image Source: General Mills Inc – Second Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On December 21, General Mills Inc (GIS), the firm behind the Cheerios, Pillsbury, and Nature Valley brands (among various others), reported second quarter earnings for fiscal 2022 (period ended November 28, 2021) that beat consensus top-line estimates but missed consensus bottom-line estimates. The consumer staples giant also raised its full year guidance for fiscal 2022 in conjunction with its latest earnings report. In the face of major input cost inflationary pressures and supply chain constraints, brought on in part by the coronavirus (‘COVID-19’) pandemic and the fiscal/monetary policies enacted to offset the economic damage caused by the public health crisis, General Mills has … Read more

Kroger Beats Estimates and Once Again Raises Guidance

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Image Source: Kroger Co – Third Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan Kroger Co (KR) recently reported third quarter earnings for fiscal 2021 (period ended November 6, 2021) that beat both consensus top- and bottom-line estimates, and the retailer also once again boosted its full-year guidance for fiscal 2021. Kroger’s operations include retail store brands such as City Market, Food 4 Less, Fred Meyers, Metro Market, and more, along with its private label brands of consumer staples offerings. Shares of KR have shifted meaningful higher since its latest earnings update as of this writing. Earnings Update In fiscal 2020 (period ended January 30, 2021), Kroger put up banner performance due in large part to the “panic” … Read more

Tyson’s Pricing Strength Enables Margin Expansion During Turbulent Time

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Image Shown: Tyson Foods Inc put up stellar results for fiscal 2021. Image Source: Tyson Foods Inc – Fourth Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan On November 15, Tyson Foods Inc (TSN) reported fourth quarter earnings for fiscal 2021 (period ended October 2, 2021) that beat both consensus top- and bottom-line estimates largely due to the firm’s impressive pricing strength, the focus of this article. The company is facing major headwinds from the coronavirus (‘COVID-19’) pandemic, from labor shortages to supply chain bottlenecks to rising input costs, though Tyson has adeptly navigated this turbulence while bolstering both its revenues and its margins. For reference, please note that Tyson’s fiscal year ends around late-September or early October. … Read more

Don’t Throw Out These Garbage Stocks

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Image Source: Republic Services By Brian Nelson, CFA The waste hauler industry is one of the most attractive in our coverage. It boasts recession-resistant characteristics, and its oligopolistic structure translates into strong pricing power for those that have disposal capacity. One thing that we can count on besides death and taxes is garbage, and while society is taking steps to limit waste, it’s something that will always be a part of the economic system. It’s easy to get excited about what’s happening in cryptocurrency or be enthralled by the latest and greatest ETF, but sometimes the most boring of stocks can make for some exciting returns. According to data from Seeking Alpha, Republic Services (RSG) has boasted a near-40% year-to-date … Read more

Dividend Growth Idea Republic Services Is a Stellar Enterprise

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Image Source: Republic Services Inc – August 2021 IR Presentation By Callum Turcan The waste management industry is an incredibly attractive one for investors seeking dividend growth opportunities. One of our favorite firms in the space is Republic Services Inc (RSG), which is included as an idea in the Dividend Growth Newsletter portfolio. Roughly 75% of Republic Services’ revenues come from its collection business and approximately 80% of its revenue has an annuity-type profile, highlighting the incredibly stable nature of its cash flow profile. On July 29, Republic Services posted second-quarter 2021 earnings that beat both consensus top- and bottom-line estimates, and its strong performance enabled the firm to raise its full-year guidance (again) for 2021. Furthermore, Republic Services announced … Read more

Dividend Growth Idea Republic Services’ Solid Long Term Outlook

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Image Shown: An overview of Republic Services Inc’s expansive waste management operations across the US. We include shares of Republic Services as an idea in our Dividend Growth Newsletter portfolio. Image Source: Republic Services Inc – May 2021 IR Presentation By Callum Turcan The waste management business is highly appealing when it comes to finding potential dividend growth opportunities. Our favorite idea in the space, Republic Services Inc (RSG), is included in the Dividend Growth Newsletter portfolio. Shares of RSG yield ~1.5% as of this writing and have been on a nice upward trend during the past few months. The top end of our fair value estimate range sits at $125 per share (RSG trades at ~$110 per share at … Read more

ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline

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ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline — — In this 40+ minute video jam-packed with must-watch content, Valuentum’s President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He’ll talk about which companies Valuentum likes and why, and which areas he’s avoiding. This and more in Valuentum’s 2020 Exclusive conference call.   Note: This video was originally published August 2, 2020.    To watch the video >>   The Theory of Universal Valuation —– Valuentum members have access to our 16-page stock reports, … Read more