Waste Management, Inc. Stock Analysis – Too Expensive for Me (part 3 of 3)

Summary

  • This Waste Management, Inc. stock analysis is the 3rd of a 3 part series on the largest non-hazardous solid waste collection companies.
  • The non-hazardous solid waste collection industry is highly fragmented due to its low entry barriers.
  • Growing to a meaningful size is not easy and requires readily accessible sources of capital.
  • The largest players within the industry have a sizable pool of acquisition opportunities.
  • WM has not experienced any significant top line growth over the last 10 years but is growing EBITDA and FCF.
  • WM might be attractive to some investors but I view it as too expensive at current levels.

Continue reading “Waste Management, Inc. Stock Analysis – Too Expensive for Me (part 3 of 3)”

Republic Services, Inc. Stock Analysis – Too Expensive For Me (Part 2 Of 3)

Summary

  • This Republic Services, Inc. stock analysis is the 2nd of a 3 part series on the largest non-hazardous solid waste collection companies.
  • The non-hazardous solid waste collection industry is highly fragmented due to its low entry barriers.
  • Growing to a meaningful size is not easy and requires readily accessible sources of capital.
  • The largest players within the industry have a sizable pool of acquisition opportunities.
  • RSG management has indicated that, in the short-term, dividend growth and share repurchases will receive more priority than tuck-in acquisitions.
  • RSG might be attractive to some investors but I view it as too expensive at current levels.

Continue reading “Republic Services, Inc. Stock Analysis – Too Expensive For Me (Part 2 Of 3)”

Waste Connections Inc. Stock Analysis – Too Expensive For Me (Part 1 Of 3)

Summary

  • This Waste Connections Inc. stock analysis is the 1st of a 3 part series on the largest non-hazardous solid waste collection companies.
  • The non-hazardous solid waste collection industry is highly fragmented due to its low entry barriers.
  • Growing to a meaningful size is not easy and requires readily accessible sources of capital.
  • Growth by acquisition presents challenges as WCN has learned after closing the Progressive acquisition.
  • WCN’s management has indicated that above average acquisition activity could utilize existing/projected excess cash flow over the next few quarters.
  • In my opinion WCN is expensive at current levels.

Continue reading “Waste Connections Inc. Stock Analysis – Too Expensive For Me (Part 1 Of 3)”

Broadridge Financial Solutions Stock Analysis – It Continues to Meet My Expectations

Summary

  • As a long-term Broadridge investor I am pleased with its FY2017 results and optimistic it will meet its FY2018 projections. Both were released August 10, 2017.
  • Broadridge continues to make bolt-on acquisitions to enhance its product/service offering with the Spence Johnson acquisition being the most recent.
  • The repurchase of Issued and Outstanding shares and Dividend increase trends continue.
  • BR’s shares are very rarely inexpensive but are currently reasonably valued if you use consensus adjusted EPS estimated for FY2018.

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ADP Stock Analysis FY2017 – Pershing Square’s Interference is Not Warranted

Summary

  • This ADP Stock Analysis is based on FY 2017 results as at June 30, 2017 and FY2018 projections.
  • ADP is currently the 3rd most heavily shorted company in the data processing and outsourced services sector.
  • Pershing Square Capital Management L.P. has accumulated an 8% stake and has put forth an amended proposal in an effort to gain 3 seats on ADP’s Board.
  • ADP has a history of 42 consecutive years of dividend growth and its shares have appreciated considerably in value over the long-term.
  • I view ADP shares as expensive at the moment. I do not, however, have any intention of selling our shares even though wealthy influential investors feel a correction is overdue.

Continue reading “ADP Stock Analysis FY2017 – Pershing Square’s Interference is Not Warranted”

Alimentation Couche-Tard Stock Analysis – A Canadian Success Story on Which I Will Pass

Summary

  • This Alimentation Couche-Tard analysis is based on FY2017 results as at April 30, 2017 released August 3, 2017.
  • Alimentation Couche-Tard is the second largest convenience store operator in the world behind Japan’s Seven & I Holdings.
  • The company has taken on considerable debt to assist with its dramatic growth over recent years.
  • Operating margins are thin and FCF/share as at FYE2017 was lower than as at FYE 2014 and FYE2015 although it did bounce back from the FYE 2016 level.
  • Any expected return on an investment in this company will need to come from capital appreciation as the dividend is immaterial.
  • Alimentation Couche-Tard does not fit my investor profile and I will not be investing in the company.

Alimentation Couche-Tard Inc. (TSX: ATD.B) reports its financial results in USD. Its stock, however, is only traded on the TSX. The stock price and per share values reflected in this post are, therefore, reflected in CDN dollars. Continue reading “Alimentation Couche-Tard Stock Analysis – A Canadian Success Story on Which I Will Pass”

Enbridge Inc. Stock Analysis – An Investment Opportunity Right Under My Nose

Summary

  • This Enbridge stock analysis is based on Q2 2017 results and management’s forecast for the remainder of fiscal 2017 which was presented August 3, 2017.
  • Enbridge has excellent long-term growth opportunities and currently has one of the strongest portfolios of in-service and future growth pipeline projects.
  • It currently has $31B of diversified low-risk projects in various stages of development of which $7B are to be placed in service in the 2nd half of 2017.
  • Enbridge has a track record of rewarding dividend conscious investors with steadily increasing dividends over the past 22 years.
  • I recently acquired Enbridge shares for the FFJ Portfolio after completing my analysis.

All figures are expressed in Canadian dollars unless otherwise noted. Continue reading “Enbridge Inc. Stock Analysis – An Investment Opportunity Right Under My Nose”