Morningstar

Morningstar, Inc.

Equity Bottom-Up

Waste industry leader Waste Management enjoys unmatched dominance in landfill ownership. As a fully integrated waste-hauler, it leverages a vast network of collection routes, which bestows significant control over the waste stream, funneling trash from numerous end-market customers (commercial, industrial, and residential) into its valuable landfill assets. Third-party waste haulers also make use of the company’s landfills. In our view, intangible assets (immense regulatory hurdles to new…

Wide-moat waste services leader Waste Management’s first-quarter organic revenue increased roughly 5%, slightly ahead of our expected run rate on better-than-expected traditional solid-waste collection and disposal volume. Relative to the same period last year, internal top-line growth stems from the healthy core pricing backdrop, including solid yield management (increased focus on passing through rising costs) and volume gains rooted in several years of positive U.S. economic growth and…

Wide-moat waste-services leader Waste Management struck a deal to acquire all the outstanding shares of public rival Advanced Disposal, or ADSW, for $33.15 in cash, representing a total enterprise value near $4.9 billion when including $1.9 billion of ADSW’s net debt. Management expects to fund the deal with incremental senior notes. The transaction is slated to close in first-quarter 2020. The offer price is 22% above ADSW’s market price before the announcement, which increases the likelihood…

United States

Waste Management, Inc. provides waste management services including collection, transfer, recycling, resource recovery and disposal services, and operates waste-to-energy facilities.  The Company serves municipal, commercial, industrial, and residential customers throughout North America.