Latest news with #Stericycle
Yahoo
29-07-2025
- Business
- Yahoo
Why Waste Management Stock Is Surging Today
Key Points Waste Management beat Wall Street's sales and earnings targets for Q2. The company raised its full-year free-cash-flow target. While management lowered its sales target for the year, margins are coming in better than previously anticipated. 10 stocks we like better than Waste Management › Waste Management (NYSE: WM) stock is gaining ground Tuesday following the company's recent earnings report. Its share price was up 3.4% as of 10:45 a.m. ET and had been up as much as 5.4% earlier in the session. Waste Management published its second-quarter results after the market closed yesterday and reported sales and earnings that came in ahead of Wall Street's targets. Following the strong quarter, the company also raised its full-year free-cash-flow (FCF) target. Waste Management rises on strong Q2 results Waste Management posted non-GAAP (adjusted) earnings per share of $1.92 on revenue of $6.43 billion, topping the average analyst estimate's call for per-share earnings of $1.89 on revenue of $6.33 billion. Revenue was up roughly 19% year over year, with the company's acquisition of Stericycle being a major contributor to the growth. Adjusted earnings per share were up 5.5% year over year, and improvements for the business's collection and disposal segment helped the company notch a best-ever operating expense margin of 59.6%. What's next for Waste Management? Waste Management is now guiding for free cash flow to come in between $2.8 billion and $2.9 billion, a $125 million increase over the company's previous guidance range. On the other hand, the company lowered its full-year revenue target to between $25.28 billion and $25.48 billion -- down from its previous guidance for sales between $25.55 billion and $25.8 billion. Management attributed the decline in sales guidance to some lower volumes in the collection and disposal segment as well as lower recycled commodity prices and the impact that's having on its recycling brokerage business. Despite the lowered sales target for the year, the company's recent margin improvements bode well for the long term. Should you buy stock in Waste Management right now? Before you buy stock in Waste Management, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Waste Management wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Waste Management. The Motley Fool has a disclosure policy. Why Waste Management Stock Is Surging Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-07-2025
- Business
- Yahoo
Waste Management Q2 2025 Earnings Preview: Volume Growth Faces Pricing Pressure
Waste Management (NYSE:WM) reports Q2 2025 earnings after market close on Monday, July 28, with the conference call slated for Tuesday, July 29. Consensus estimates peg EPS at $1.90 and revenue at approximately $6.34 billion, which would represent a significant 18% revenue increase YoY. The giant in waste collection trades 5% below its all-time high, roughly flat month-to-date and up about 13% year-to-date. Consensus anticipates healthy mid-teens top-line growth as commercial and industrial volumes stay firm, yet margin optics will decide the narrative. The Street wants proof that Waste Management's mid-year price increases can outrun higher diesel, labor, and landfill-operating costs while recycling revenue grapples with Old Corrugated Container prices stuck near $70/ton, down about a third from last year. Management has guided 2025 free cash flow of $2.68-$2.78 billion, so any tweak here or to CapEx needed for fleet conversion could sway investor sentiment. Strategic moves add another layer. Investors will look for early read-outs on the $7.2 billion Stericycle acquisition, which promises over $125 million in annual cost savings within a year of close and opens a higher-margin medical-waste line. Meanwhile, Waste Management is exploring options for its renewable-natural-gas portfolio, a business that could fetch $3 billion and reshape the sustainability CapEx glide-path. Clarity on either front, plus color on landfill gas-to-RNG EBITDA run-rate targets, will help the market judge whether Waste Management can defend its premium multiple through 2025. With pricing, integration, and portfolio strategy all converging this quarter, even a routine beat may not be enough if cash-flow or synergy timelines slip. This article first appeared on GuruFocus.
Yahoo
11-07-2025
- Business
- Yahoo
1 Magnificent S&P 500 Dividend Stock to Buy for a Lifetime of Passive Income
Waste Management may be the epitome of a steady-Eddie business. It has a wide moat around its operations and has historically stomped the market. Waste Management raised its dividend payments by 10% this year, and there should be plenty more increases on the way. 10 stocks we like better than Waste Management › In an era when artificial intelligence (AI) and quantum computing stocks are generating more hype than ever, it is easy to overlook reliable compounders with wide moats. One of my personal favorites is North America's largest trash and recycling juggernaut, Waste Management (NYSE: WM). Since the turn of the millennium, Waste Management has been a 23-bagger -- quadrupling the total returns of the S&P 500 (SNPINDEX: ^GSPC). Better yet, for passive income seekers, the company increased its dividend payments for 21 consecutive years along the way. Despite these two-and-a-half decades of success, the best may still be ahead for Waste Management. Waste Management accounts for nearly 20% of the combined U.S. and Canadian waste and recycling industry. The company owns and operates 262 landfills, 506 solid and medical waste transfer stations, and 105 recycling facilities. Similar to Copart's junkyards, Waste Management benefits from citizens' reluctance to add new landfills near their cities. Since the company already operates the largest waste collection network across North America, it will be challenging for competitors to disrupt Waste Management's operations. Regulatory barriers add another layer of protection around the company's operations by limiting the number of upstarts vying to knock Waste Management from its leadership position. These advantages give the company a wide moat, helping to explain its impressive returns for investors. Lastly, Waste Management's brand recognition is much higher than its peers. This brand awareness gives the company a competitive edge in key areas, such as expanding its national accounts and increasing self-service e-commerce sales. While the company's leadership position and wide moat are exciting on their own, Waste Management also has two intriguing growth areas. The company invested $1.4 billion to build or automate 39 recycling facilities by 2027. This will expand its capacity in the burgeoning recycling industry. Meanwhile, Waste Management is also spending $1.6 billion to build 20 renewable natural gas (RNG) facilities by 2027. Capturing the landfill gases (LFG) at its facilities, Waste Management operates LFG-to-electricity plants, and also converts LFG to RNG to help fuel its fleet of collection vehicles. Management believes these sustainability growth areas will see sales growth of 15% through 2027 and generate $600 million in annual free cash flow (FCF). Waste Management averaged roughly $2 billion in FCF over the last five years, so this growth should boost cash generation. Waste Management acquired medical waste and document disposal leader Stericycle in 2024 for $7.2 billion. Stericycle was the leader of its niche, but it struggled to maximize its profitability and should thrive by joining Waste Management's vast service network. Management hoped to realize $125 million in synergies, but has boosted this figure to $250 million one year later. With the U.S. medical waste services market expected to grow by 7% annually through 2028, Waste Management is well-positioned to serve hospitals facing an aging population. The company currently boasts a return on invested capital (ROIC) of 14%, which exceeds the average of its peers at 11%. Exceeding Waste Management's cost of capital at 8%, this ROIC shows the company's promising track record of generating profits from the debt and equity it uses to fund its new growth areas. Waste Management currently offers a dividend yield of 1.4%. This yield doesn't really scream "passive income potential." Yet, the company's consistent dividend increases pack quite a punch. For example, Waste Management has delivered total returns of 2,230% since 2000. Without dividends, this figure drops to 1,220%. This difference highlights the value of buying and holding blue chip dividend-growth stocks. As for the safety of Waste Management's dividend, it only uses 46% of the company's net income, leaving ample room for future increases. As the Stericycle acquisition continues to streamline and Waste Management's sustainability business expands, profits should rise, bringing higher dividend payments. Growing its payments by 10% compared to last year, Waste Management's dividend should offer plenty of passive income potential for investors willing to buy and hold for a decade and beyond. Trading at 30 times forward earnings, the company isn't cheap. However, Waste Management's resilient business, wide moat, growth options, and passive income potential make it worthy of a premium to a market it has already proven capable of outperforming. Before you buy stock in Waste Management, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Waste Management wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $998,376!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Josh Kohn-Lindquist has positions in Copart and Waste Management. The Motley Fool has positions in and recommends Copart. The Motley Fool recommends Waste Management. The Motley Fool has a disclosure policy. 1 Magnificent S&P 500 Dividend Stock to Buy for a Lifetime of Passive Income was originally published by The Motley Fool
Yahoo
12-06-2025
- Business
- Yahoo
Why Waste Management stock has been anything but trash
Shares of Waste Management, Inc. (WM) — which does business as WM — are trading near an all-time high. WM CFO Devina Rankin sits down with Julie Hyman to uncover the so-called "why behind the high," sharing her insight into why this trash stock has proven to be a treasure for investors. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. For people who aren't that familiar with WM, sort of big picture, tell us what an investor can expect from the company. My my sort of impression of your industry generally and you guys specifically is pretty steady business, right? Everybody needs their their trash removed, both residential and commercial, and business that probably generates a good amount of cash. Yeah, that's a great synopsis, but I would say is we're an essential service and that means that we're resilient. We do well in any economic environment and any political administration. So, when people are looking for a safe place, we're often thought of one of those places to park money in uncertain times. What I would say is we go beyond that, though. We're also a growth engine and that growth comes from strong execution from top line to bottom line, in terms of how do we grow our markets organically? How do we grow through price cost optimization, leveraging technology in order to optimize our cost to serve? And thinking about scaling our business, both in our core, but then also in things like healthcare solutions and renewable energy. Um, and um, I want to show folks a chart of the revenue growth you guys have had over the past decade or so by um year, as well as EBITA growth. And again, it has been that that pretty steady growth that we've been talking about, but within that, um, what would you say looking forward are going to be the biggest areas of growth for the company? You mentioned medical, for example, I know you guys recently completed a big acquisition in that, uh, in that business. Is that where investors can expect that sort of growth to be a little more supercharged? Yeah, so I think it's important to look at our history and put our history into really solid context for purposes of where we go from here. Um, what we have done generally over the last decade is grow EBITA. Our target has been five to seven percent annual EBITA growth over the last 10 years or so, and we've meaningfully outpaced that. Our EBITA growth in the last three years has been 9% on average. And when we think about what lies ahead, it really is a supercharging, and that supercharging comes from that core solid waste growth that we've, you know, had a consistent track record of being able to generate. And then the strong integration of the healthcare solutions business, the Stericycle acquisition that we completed in November of 2024, um, that integration is off to a great start, and it's really scaling WM's expertise in materials management to a new segment of the economy. On top of that, we are a sustainability leader. That means that what we do goes beyond picking up your waste from the curb and taking it to a landfill. We're the largest recycler. We're also the largest generator of renewable natural gas from landfills in North America. So, those things are creating economic value and environmental utility, which we think will spur incremental growth over the next 10 years. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
JPMorgan Upgrades Waste Management (WM) to Overweight, Lifts PT
On Friday, JPMorgan analyst Tami Zakaria upgraded the rating for Waste Management Inc. (NYSE:WM) from Neutral to Overweight, while also raising the price target to $277 from $225. This upgrade follows Zakaria's initiation of coverage for the waste services sector. The analyst noted skepticism surrounding the company's Stericycle acquisition and the ongoing spending on renewable natural gas projects. The acquisition refers to Waste Management's $7.2 billion purchase of Stericycle in November 2024. Stericycle provides medical waste and secure information destruction services. A worker sorting recyclable materials on a conveyor belt inside a Material Recovery Facility. However, JPMorgan anticipates that the valuation gap between WM and its competitors will narrow over the longer term. This expected convergence is driven by projected revenue and cost synergies from Stericycle, as well as increasing traction in the company's sustainability projects. The firm also foresees an opportunity to boost Stericycle's core growth profile. Waste Management Inc. (NYSE:WM) provides environmental solutions to residential, commercial, industrial, and municipal customers globally. While we acknowledge the potential of WM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WM and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
