Waste Management delivered a highly disappointing result in the last quarter and did not live up to analyst expectations with respect to revenues as well as earnings. They observed a slowdown in the rate of labor increases and remained committed to managing operating costs and bending costs to match shifting volumes. They are also looking to work on their labor expenses in their collection and disposal operations as inflationary wage pressures subside. The company advanced its planned recycling investments and provided more details in the supplemental presentation on its website. The management claims to have a long-term focus on sustainable growth, business transformation through technology and automation but it is operating in a highly dynamic environment and is forced to adapt to the changing needs of its clients. The management intends to advance its investments in automation, recycling, and renewable energy to spur growth. We give them a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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