WM

Waste Management Posts Poor Second Quarter, Lowering Our Fair Value

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Waste Management (WM) posted poor second-quarter results Thursday and lowered its earnings outlook for the year on the expectation of weaker volumes. We have reduced our fair value estimate to $39 per share on the weaker volume outlook and slightly lower yield expectations. Revenue jumped 6% thanks to higher commodity prices, improving recycling volumes and a modest improvement in pricing. The company noted that volumes hit “a soft patch” in May and June, but look to be improving modestly in July. However, it took down its full-year waste volume guidance to the range of -1.5% to -2.5%. Commentary regarding yields wasn’t all that encouraging either, with the measure facing some pressure from large municipal contracts in Florida and the Gulf Coast. … Read more

Waste Management Looks Undervalued, Boasts Attractive Yield

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This article originally appeared on Seeking Alpha. Please view disclosures: https://seekingalpha.com/article/275873-waste-management-looks-undervalued-boasts-attractive-yield At Valuentum, we employ a discounted cash-flow model to arrive at a fair value estimate for every company within our equity coverage universe. In the waste industry, using a discounted cash-flow model is the best tool for valuation, given the robust cash-flow characteristics of participants. We outline below our forecasts and fair value estimate for Waste Management and offer up our model template to investors if they are interested in using it to value any operating (non-financial) company they wish. This model template can be found at the following location: DCF Valuation Model. But before we dive into the numbers on Waste Management, we’d like to invite investors to take a read of a waste-industry primer, which goes into … Read more

Assessing Dividend Plays in the Trash Industry

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This article originally appeared on Seeking Alpha. Please view disclosures: https://seekingalpha.com/article/272847-assessing-dividend-plays-in-the-trash-industry  Companies in the municipal solid waste sector are well-known for their cash-flow generating prowess and relatively stable operating performance. As outlined in this waste industry primer, a trash-taker’s residential collection operations are on a service-based model (not-volume based) and help to mitigate cyclical pressures in other economically-sensitive lines of their business (industrial roll-offs, etc.). Further, cell-by-cell landfill development provides additional flexibility with respect to capital outlays, as rubbish handlers can scale back expenditures during troubled economic times, bolstering free cash flow. Such consistent, cash-rich business models have translated into a nice flow of dividends, particularly at the largest two domestic players, Waste Management (WM) and Republic Services (RSG). [Click to enlarge]With … Read more

Republic Services: A Trash Stock Worth Picking Up

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This article originally appeared on Seeking Alpha. Please view disclosures: https://seekingalpha.com/article/270758-republic-services-a-trash-stock-worth-picking-up As Benjamin Franklin once said, “nothing is certain but death and taxes.” If he had lived during our time, Franklin would probably have added a couple other certainties – and garbage would have been among them. The US non-hazardous solid-waste services industry generates annual revenue in excess of $50 billion, a staggering number just to keep our streets clean. Public companies (like Waste Management (WM), Republic Services (RSG), Waste Connections (WCN), etc.) dominate this market, generating greater than 60% of industry revenues and controlling an equal percentage of valuable disposal capacity. The top line for the group can be expected to expand at a nominal-GDP rate, with pricing growth in … Read more

There Is Milk At The Store

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This article first appeared in the September edition of the High Yield Dividend Newsletter. For more information about this publication, please see here. “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.” — Winston Churchill By Brian Nelson, CFA Very few of us could have imagined that we’d witness the bull market that began on that fateful day in March 2009 that might very well mark a generational low. In 2009, major investment banks around the globe were struggling to survive, and the fallout in the mortgage markets left the banks holding paper that nobody wanted to own, let alone buy. The global financial system … Read more

Dividend Increases/Decreases for the Week of December 20

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Below we provide a list of firms that raised their dividends during the week ending December 20. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          AMCON Distributing (DIT): Now $0.28 per share special dividend, was $0.18. Ameris Bancorp (ABCB): now $0.20 per share quarterly dividend, was $0.15. Apartment Investment (AIV): now $0.60 per share special dividend, was $0.02. ARC Resources (ARX:CA): now CAD 0.19 per share quarterly dividend, was CAD 0.17. Blue Owl Capital III (OBDE): now $0.52 per share special dividend, was $0.06. CenterPoint (CNP): now $0.22 per … Read more

Dividend Increases/Decreases for the Week Ending February 28

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Below we provide a list of firms that raised their dividends during the week ending February 28. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Albemarle (ALB): now $0.385 per share quarterly dividend, was $0.3675. Allison Transmission Holdings (ALSN): now $0.17 per share quarterly dividend, was $0.15. Anheuser-Busch Inbev (BUD): now EUR 1.00 per share semi-annual dividend, was EUR 0.80. Assured Guaranty (AGO): now $0.20 per share quarterly dividend, was $0.18. Barings BDC (BBDC): now $0.16 per share quarterly dividend, was $0.15. Best Buy (BBY): now $0.55 per share quarterly dividend, … Read more

Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

Dividend Increases/Decreases for the Week of February 21

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Below we provide a list of firms that raised their dividends during the week ending February 21. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          Aker BP (AKRBF): now $0.63 per share quarterly dividend, was $0.60. Allison Transmission Holdings (ALSN): now $0.27 per share quarterly dividend, was $0.25. Analog Devices (ADI): now $0.99 per share quarterly dividend, was $0.92. Assured Guaranty (AGO): now $0.34 per share quarterly dividend, was $0.31. AstraZeneca Plc (AZNCF): now $2.10 per share semi-annual dividend, was $1.00. Atlas Energy Solution (AESI): now $0.25 per share … Read more