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If You Invested $1000 in Waste Management a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Waste Management (WM - Free Report) ten years ago? It may not have been easy to hold on to WM for all that time, but if you did, how much would your investment be worth today?
Waste Management's Business In-Depth
With that in mind, let's take a look at Waste Management's main business drivers.
Headquartered in Houston, Texas, Waste Management Inc. is a leading provider of comprehensive waste management services in North America. The company provides collection, transfer, recycling and resource recovery, as well as disposal services to residential, commercial, industrial and municipal customers. It is also a leading developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States.
Waste Management provides collection services that include picking up and transporting waste and recyclable materials from the point of generation to a transfer station, disposal site or material recovery facility (MRF). The company owns, develops, and operates landfill gas-to-energy facilities in the United States. It owns and operates transfer stations.
Waste Management also provides materials processing, commodities recycling and recycling brokerage services. It also offers construction and remediation services; services associated with the disposal of fly ash and residue, in-plant services comprising full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations.
The company faces intense competition from governmental, quasi-governmental and private organizations in all aspects of its operations. It competes mainly with large national waste management companies, municipalities and counties that manage their own waste collection and disposal operations. It also competes with regional and local companies of different sizes and financial resources.
Waste Management’s operating revenues remain higher in summer months, mainly due to higher construction and demolition waste volumes. Also, in certain regions, volumes industrial and residential waste increase during summer months. Hence, revenues in second and third quarters are significantly higher than first and fourth quarters.
As of Dec 31, 2019, Waste Management had roughly 44,900 full-time employees. Around 8,600 were in administrative and sales positions and the rest in operations. Approximately 8,400 employees were covered by collective bargaining agreements.
Formerly known as USA Waste Services, Inc., the company changed name to Waste Management, Inc. in 1998.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Waste Management, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in April 2011 would be worth $3,530.48, or a 253.05% gain, as of April 26, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 212.56% and the price of gold went up 13.68% over the same time frame.
Looking ahead, analysts are expecting more upside for WM.
Waste Management continues to execute its core operating initiatives of focused differentiation and continuous improvement and instill price and cost discipline to achieve better margins. Strength across traditional solid waste business boost the company's cash and earnings. Successful cost-reduction initiatives have helped it achieve EBITDA growth. Consistent efforts to reward shareholders through dividend payments and share buybacks boost investors' confidence and positively impact earnings per share. Partly due to these positives, shares of Waste Management have improved over the past year. On the flip side, operating in a highly competitive and consolidated waste industry weigh's on the company's top line. High debt may limit the copany's future expansion and worsen its risk profile. Seasonality is another concern.
Shares have gained 6.33% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Waste Management a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Waste Management (WM - Free Report) ten years ago? It may not have been easy to hold on to WM for all that time, but if you did, how much would your investment be worth today?
Waste Management's Business In-Depth
With that in mind, let's take a look at Waste Management's main business drivers.
Headquartered in Houston, Texas, Waste Management Inc. is a leading provider of comprehensive waste management services in North America. The company provides collection, transfer, recycling and resource recovery, as well as disposal services to residential, commercial, industrial and municipal customers. It is also a leading developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States.
Waste Management provides collection services that include picking up and transporting waste and recyclable materials from the point of generation to a transfer station, disposal site or material recovery facility (MRF). The company owns, develops, and operates landfill gas-to-energy facilities in the United States. It owns and operates transfer stations.
Waste Management also provides materials processing, commodities recycling and recycling brokerage services. It also offers construction and remediation services; services associated with the disposal of fly ash and residue, in-plant services comprising full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations.
The company faces intense competition from governmental, quasi-governmental and private organizations in all aspects of its operations. It competes mainly with large national waste management companies, municipalities and counties that manage their own waste collection and disposal operations. It also competes with regional and local companies of different sizes and financial resources.
Waste Management’s operating revenues remain higher in summer months, mainly due to higher construction and demolition waste volumes. Also, in certain regions, volumes industrial and residential waste increase during summer months. Hence, revenues in second and third quarters are significantly higher than first and fourth quarters.
As of Dec 31, 2019, Waste Management had roughly 44,900 full-time employees. Around 8,600 were in administrative and sales positions and the rest in operations. Approximately 8,400 employees were covered by collective bargaining agreements.
Formerly known as USA Waste Services, Inc., the company changed name to Waste Management, Inc. in 1998.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Waste Management, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in April 2011 would be worth $3,530.48, or a 253.05% gain, as of April 26, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 212.56% and the price of gold went up 13.68% over the same time frame.
Looking ahead, analysts are expecting more upside for WM.
Waste Management continues to execute its core operating initiatives of focused differentiation and continuous improvement and instill price and cost discipline to achieve better margins. Strength across traditional solid waste business boost the company's cash and earnings. Successful cost-reduction initiatives have helped it achieve EBITDA growth. Consistent efforts to reward shareholders through dividend payments and share buybacks boost investors' confidence and positively impact earnings per share. Partly due to these positives, shares of Waste Management have improved over the past year. On the flip side, operating in a highly competitive and consolidated waste industry weigh's on the company's top line. High debt may limit the copany's future expansion and worsen its risk profile. Seasonality is another concern.
Shares have gained 6.33% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.