Waste Management (WM): Are Clean Energy Investments and Stericycle Integration Starting to Deliver on Growth Potential?

$50.00 — or $120.00 / year

Waste Management’s (WM) Q3 2024 results highlight resilient execution and strategic growth drivers, with revenue up 8% YoY to $5.61B, beating estimates by $96.27M, and adjusted EPS of $1.96 exceeding expectations by $0.08. Record EBITDA margins of 30.5% (+90 bps YoY) reflect disciplined pricing, cost containment, and operational efficiencies, including automation enhancements and improved employee retention. Core pricing gains of 6.5% and strong MSW volume growth (+5.7% YoY) underscore WM’s ability to offset industrial softness (-4.1% YoY). Sustainability initiatives gained traction, with recycling labor costs down 30% and renewable natural gas (RNG) projects expected to deliver $800M EBITDA by 2027. The $5B pending acquisition of Stericycle is poised to unlock $125M in synergies, complementing $800M in tuck-in acquisitions YTD, while landfill volume growth (+4% in Q3) reinforces stable cash flow generation. However, challenges such as industrial roll-off weakness and the 2025 expiration of the alternative fuel tax credit (~30 bps margin impact) may temper near-term growth. With $3B in clean energy investments positioning WM for durable margin expansion and CapEx intensity peaking in 2025, can WM effectively balance cyclical pressures and execute on sustainability initiatives to deliver long-term growth and shareholder value?

Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures

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  • Nextracker Inc. (NXT): Increasing Competition May Impact Pricing & Margins,BUT Heres Why Growth is On-Track and Unwavering!

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    Nextracker has provided a positive outlook for fiscal year 2025, projecting continued growth in revenue and profitability. The company expects revenue in the range of $2.8 billion to $2.9 billion, representing approximately 14% year- over-year growth at the midpoint. Adjusted EBITDA is forecasted to be between $600 million and $650 million, implying a 20% growth year-over-year. The expected GAAP EPS ranges from $2.41 to $2.61 per share, while adjusted EPS is projected to be between $2.89 and $3.09 per share. Nextracker’s guidance reflects its confidence in its strategic initiatives and strong backlog, with over $4 billion in contracted bookings supporting the fiscal year 2025 outlook. In conclusion, Nextracker’s fiscal year 2024 performance underscores its robust market position and strategic execution. The company achieved significant growth in revenue, profitability, and backlog, driven by strong demand for its solar tracking solutions and strategic global expansion. Nextracker’s focus on innovation, quality, and reliability has enabled it to deliver superior financial returns for customers and establish itself as a leader in the renewable energy sector. While challenges such as market competition, regulatory changes, and supply chain complexities persist, Nextracker’s strong financial position and strategic initiatives position it well for continued growth. Given the positive outlook for fiscal year 2025, with projected increases in revenue and EBITDA, Nextracker is poised to capitalize on the expanding solar energy market.

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