Waste collection and disposal industry leader WM enjoys leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which had been the fourth-largest publicly traded waste collection and disposal company in the United States.
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
|
WCN
|
RSG
|
|---|---|---|---|
Price/Earnings (Normalized) | 29.87 | 38.93 | 33.29 |
Price/Book Value | 11.15 | 5.74 | 5.71 |
Price/Sales | 3.99 | 5.45 | 4.06 |
Price/Cash Flow | 15.97 | 20.08 | 16.14 |
|
Metric
|
WM
|
WCN
|
RSG
|
|---|---|---|---|
Quick Ratio | 0.95 | 0.59 | 0.54 |
Current Ratio | 1.07 | 0.70 | 0.59 |
Interest Coverage | 7.29 | 4.63 | 5.45 |
|
Metric
|
WM
|
WCN
|
RSG
|
|---|---|---|---|
Return on Assets (Normalized) | 8.51% | 6.44% | 6.15% |
Return on Equity (Normalized) | 39.30% | 15.29% | 17.97% |
Return on Invested Capital (Normalized) | 13.78% | 9.27% | 9.93% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Republic Services Inc
RSG
| Klxzwszyr | Dnhw | $62.8 Bil | |||
| Waste Connections Inc
WCN
| Dtsrhfhmd | Slndp | $45.8 Bil | |||
| Veolia Environnement SA
VEOEF
| — | Gkfptq | $24.1 Bil | |||
| Veolia Environnement SA ADR
VEOEY
| Tgzclpb | Qlfvwv | $24.1 Bil | |||
| GFL Environmental Inc
GFL
| — | Csrzzzl | $15.5 Bil | |||
| Clean Harbors Inc
CLH
| Ycrtwtr | Vmbw | $13.1 Bil | |||
| Casella Waste Systems Inc Class A
CWST
| — | Fsjdtdm | $6.2 Bil | |||
| Stericycle Inc
SRCL
| Kjszlzb | Xztxg | $5.7 Bil | |||
| Cleanaway Waste Management Ltd
TSPCF
| — | Zmdh | $4.4 Bil |
United States