WM - Embedded Expectations Analysis - 2020 07 23
Waste Management, Inc. (WM:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 38.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is excited about Advanced Disposal acquisition, and confident about liquidity position and shareholder returnsSpecifically, management generated excitement markers when saying that they wanted their employees to focus on providing exceptional customer service, and when talking about the closing of their Advanced Disposal acquisition. They are also confident that both short-term and long-term financing options remain accessible, that their improved SG&A includes benefits from lower incentive compensation accruals, and that their cash position allows them to return cash to shareholders
Waste Management is a holding company. Through its subsidiaries, the company is a provider of waste management environmental services. The company partners with its residential, commercial, industrial and municipal customers and the communities it serves to manage and reduce waste at each stage from collection to disposal, while recovering resources and creating renewable energy. The company's Solid Waste business is operated and managed by its subsidiaries that focus on various geographic areas and provide collection, transfer, disposal, and recycling and resource recovery services. Through its subsidiaries, the company is also a developer, operator and owner of landfill gas-to-energy facilities.
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