I know what you’re thinking… there isn’t enough money in the world to convince me to handle garbage. At least that was my initial thought. The grueling labor of collecting, and decomposing trash isn’t the most luxurious profession. While sifting through numerous pounds of garbage is not the ideal dream job, its positive, and sustainable objective is creating renewable resources that can shift the direction in which we dispose our garbage. Not to mention it is a leading industry in the market. Producing millions of dollars in internal revenue per year, and when you put it all together it actually sounds like a smart business idea!
So who can we idolize in the profitable world of waste management? None other that the dominate force in the field, Waste Management Inc. based in Houston, Teaxs. Waste Management inc. a.k.a “WM” creates relationships with communities and customers to assist in waste disposal, and recycling solutions that ultimately creates renewable energy. With over 130 disposal sites, WM utilizes landfill gas to produce enough power for more than 440,000 homes and businesses. Not only is this a cost effective way to develop natural gas, its initiative is endorsed by The Environmental Protection Society. Last year, Waste Management inc reported their profit at $291 million (or 62 cents a share) which increased by 16 cents compared to its reported profit of $214 million back in 2012. Thomson Reuter analyst projected per-share earnings of 62 cents on $3.59 million this year.
David Steiner, CEO of Waste Management inc , explained how they were able to achieve results . “Despite the continued headwind confronting our recycling, and waste-to energy business, our overall as- adjusted income from operations grew $33 million, and the overall income from operations margin grew 20 points”. Revenue results were driven by the organizations objective to increase internal revenue by controlling cost and yield. Adding to that, the company generates a healthy cash flow from acquisitions, dividends, and share buybacks. In fact, Waste Management inc has been paying out dividends since 1998. The company recently returned $171 million to their shareholders. Talk about pay day!
Let's be clear, I’m not soliciting stock tips or suggesting you run out and invest your money in waste management. I’ll leave that to the stock pros. What I am suggesting, is maybe this is an industry worth exploring. The economic and environmental benefits far outweigh its unattractive day to day operations. I think that’s pretty dope!
For more information about Waste Management inc visit their website : www.wm.com