Waste Management Inc

Company Analysis

Waste Management Inc offers comprehensive waste management services. The company has a long history in the waste management business since 1894 with its offices located in Downtown Houston, Texas. The company has an extensive association of collection and management of waste operations with over 431 collection operations, 381 transfer locations, 286 disposal sites, 17 waste to energy plants and 134 recycling plants, 119 landfill gas projects and 6 autonomous power production projects.

Performance

The revenue of the company has been steady for the past five years with an average growth of 3.2 per cent. The company has demonstrated a remarkable increase of dividend per share over the past five years with an average dividend growth rate of 9.6 per cent. The company has established a strong distribution network and existing market share of about 30 per cent bringing a level of stability in its revenue, operating margin and profitability in the past five years can be found on the Graph below.

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Five-year profitability comparison

The company’s margins are higher than the industry’s margins indicating cost efficiency of company.

The company is a service company dealing with collection and management of waste. The waste collected is recycled and used in the generation of power. By 2003, the company was already returning profits in free cash to its shareholders in form of dividends.

The company had expressed interest in acquiring its competitor Republic Services, Inc in July 2008 placing a bid of $34 per share, however, this offer was rejected and the company made another attempt in August the same year raising the offer to $37 per share. Unfortunately, this bid was also rejected and Waste Management, Inc finally withdrew the bid in October, 2008 citing that it was in a financial turmoil.

YEAR20102011
Price per share(In dollars)31.1431.18
Outstanding share number2,818,6092,961,433
Market cap87,771,484.2692,337,480.94

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