Waste Management, Inc. (NYSE:WM)

The amount of debt this compay has been taking on the last two years is extremly alarming. This company has also been burning through its cash at an alarming rate. These are two warning signs that make this an easy pick for me.

Headed straight for bankruptcy. WM's FCF per share has been materially lower than its EPS in the last four years, this is unsustainable and could indicate upwards earnings manipulation. In addition, its debt levels are steadily increasing, while its book value is going nowhere. On top of that, a current ratio of 0.8 suggests that WM will be unable to pay its short term obligations. An Altman Z score below 1.8 also expects a not too bright future for WM. Even if WM would remain in business, it is currently trading way above the intrinsic value of $23 I estimated using Value Spreadsheet.

This is my very first "underperform" pick, but this company is destroying value and headed for bankruptcy in the coming years. I suggest you stay far away from it.

This is a under the radar defensive stock.

People make more and more trash. Buy this on dips.

This is an innovative, necessary and well run company that keeps their investors/stockholders in mind with their dividend increases and distributions. I think it is a keeper for DGI's.

Steady stream of input, cash out

Take out the papers and the trash
Or you don't get no spendin' cash...Yakety yak (don't talk back)

Waste Management takes out the trash and is a leader in recycling... Definitely a boring, making money business to hold for the long term!

Companies that do things that no one else wants to do have a special place in any well diversified portfolio. This is one of the poster children for that philosophy.

Waste Management has 271 active landfills. It also has a formidable waste-to-energy generation capacity via 22 Wheelabrator plants. It has a reputation for generating cash and leveraging its sheer size to capture larger, national accounts that smaller players in the space just cannot do.

Yes, it is a capital intense business, but WM operates with a reasonable amount of leverage given the $1 Billion in cash and investment holdings are taken into account.

Yielding around 4% makes it a good candidate for ROTH IRAs in the US and TFSAs in Canada.

Today, Credit Suisse said investors would benefit if the biggest U.S. trash hauler was converted into a real estate investment trust.

Discussions with tax lawyers and accountants show landfills and their air rights qualify for REIT status. Investors generally prefer REIT conversions because of future tax benefits and because 90 percent of taxable income must be distributed to shareholders.

The effect of conversion on operational flexibility is less of a concern at Waste Management than at faster-growing competitors.

“Nobody wants their garbage back, which means it can be in the landfill in perpetuity much like a perpetual real estate lease agreement,” Credit Suisse analyst Hamzah Mazari said in the note. “We believe tip rates at the landfill and transfer station revenue qualify as REIT income.”

As the economy improves, so will the recycling markets and energy prices, two areas that WM excels at and many do not see it. Now they are partnering with WTE companies. Charge to bury non-recylables on a per ton basis and then sell the same ton to turn it into energy??? Sounds like a plan to me...

I like wide moats and I like peripheral housing plays, so I like Waste Management.

I like dividends too.

wate is here to stay and they control the market so makes a good solid investment for the long term

There is a lot to like about Waste Management. Their 5 year dividend growth rate is approximately 8% and currently yields almost 4.5%, well above their 5 year average of 3.5%. They generate a ton of cash ($0.16 for every $1 in market cap) and return a lot of it to the shareholders. They continue to expand their waste-to-energy business which should help keep the revenues and earnings growing. I also really like their corporate conduct, requiring members on the board of directors and executive management to have high levels of stock ownership, restrictions on selling stock, and to me, good criteria for determining bonuses such as operating earnings growth and margins. The chairman of the board is separate from the CEO. This may not be a flashy, high-growth company, but it looks like a steady growing one, a company that would interest Peter Lynch.

This company will really conquer the S&P 500 performance. This weeks for sure. Let's celebrate.

The company is innovating new ways to create cash from trash. Good strategy to move to lower cost CNG for their fleet. Good Dividend and a low volatility make this a keeper.

4% dividend at current price.

They collect,recycle,sell and there trucks are the cleanest in the business.

WM is a long-term cash cow on sale now. Yes, it faces short-term pressures on margins and volumes, but it will always generate profits and a hefty dividend.

Trash is everywhere. Only way to eliminate trash volume is to recycle and WM is involve in that too.