$RSG (+0.39%)
$WM (-0.95%)

The waste management company reported adjusted earnings per share of USD 1.58 for the quarter, beating the consensus estimate of USD 1.41 by USD 0.17.

Sales amounted to USD 4.05 billion, just below analysts' forecasts of USD 4.08 billion, but 5.6% higher than in the previous year.

"We delivered another strong set of results in 2024, enabled by the effective execution of our strategy to meet the needs of our customers and grow the business profitably," said Jon Vander Ark, President and CEO of Republic Services.

For the full year 2024, Republic Services generated adjusted free cash flow of USD 2.18 billion, an increase of 10% compared to the previous year.

The company distributed a total of USD 1.18 billion to shareholders in the form of dividends and share buybacks in 2024.

Republic Services issued a forecast for 2025 that is largely in line with Wall Street expectations. The company expects adjusted earnings per share of between USD 6.82 and USD 6.90 for the full year 2025, compared to the consensus estimate of USD 6.79. Revenue is expected to be between USD 16.85 billion and USD 16.95 billion.

The solid quarterly results and optimistic outlook underscore Republic Services' ability to deliver profitable growth despite economic challenges.

The company's focus on pricing initiatives and productivity improvements appears to be paying off, as evidenced by the 110 basis point expansion of the adjusted EBITDA margin to 31% in the fourth quarter.

Waste Management $WM (-0.95%) announced its Q4 results and financial figures in the early hours of this morning "Fourth Quarter and Full-Year 2024 Earnings" [1] were published.

I would like to go into this in more detail in this article.

The earnings call is also still ongoing, which started at around 4 p.m., but has not yet revealed any new information, which is why I am posting now.

According to Deepdive, WM accounts for around 3% of the total portfolio in my portfolio through direct and indirect investments.

Before I go into the figures, I would like to briefly differentiate the difference between the published figures and the adjusted figures in the case of WM:

"Reported" & "Adjusted"

• Reportedincludes one-off costs (e.g. acquisition costs of Stericycle, restructuring).
• Adjusted: shows the core business without special effects - for better comparability.

📊 Financial year figures at a glance

• Sales: $22.06 billion (Reported & Adjusted) (+8%)
• Operating result: Reported: $4.06 billion (+13.6%), Adjusted: 4.30 bn $ (+12.2%)
• EBITDA: Reported: $6.33 bn (+12%), Adjusted: $6.56 bn (+11%)
• Net income:Reported: $2.75 bn (+19%), Adjusted: 2.92 bn $ (+16%)
• Dividend 2025: Planned $3.30 per share (+10%)

🏭 Business divisions & their development

WM is the market leader in waste management and is primarily active in Canada and the USA as its main markets, with strong growth in the USA.

Collection & Disposal

• 19.72 billion $ turnover (+5%)
• Strongest growth due to price increases (+6.7%) & optimization of operating structure.

Recycling Processing & Sales

• 1.60 bn $ turnover (+27%)
• Strong recovery due to higher raw material prices for recycled material.

WM Renewable Energy (Renewable Energies)

• 318 million $ turnover (+16.5%)
• Expansion of biogas projects; 50% of production for 2025 already sold.

WM Healthcare Solutions (medical waste)

• 403 million $ turnover (new!)
• New due to the acquisition of Stericycle; high margins expected.

💰 Financial strength & debt structure

• Cash flow from operating activities: USD 5.39 billion (+14.2%)
• Free cash flow (after investments): USD 2.32 billion (+21.8%)
• Cash position: 487 million $
• Total debt at the end of 2024: USD 24.58 billion
• Debt repayments: USD 17.87 billion in 2024
• Debt ratio target: 3.1x EBITDA by the end of 2025
• Temporary pause of share buybacks to prioritize debt reduction.

💡 Conclusion so far

• Growth drivers remain pricing, sustainable investments & Stericycle integration.
• Recycling & renewable energies will become more profitable in the medium term
• High debt due to Stericycle acquisition, but strong cash flow growth.

💼 Stericycle acquisition: expansion into the healthcare sector

On November 4, 2024, WM acquired Stericycle for $7.2 billion

Financial impact:

• 2024: $403 million in additional revenue
• 2025: Expected synergies of $100 million, $250 million by 2027
• EBITDA margin: only 1% in 2024, expected to reach 15.1% in 2025

Why Stericycle?

• Stericycle is the largest provider of medical waste disposal in North America. With this acquisition, WM is entering the healthcare sector. A growth segment with stable earnings and margins.

🌱 Sustainability projects with fast payback

WM invests heavily in renewable energy and recycling automation.

• 7 out of 20 planned biogas plants are already in operation (biogas projects have a payback period of just 3 years)

• 25 out of 39 recycling automation projects have already been completed (recycling plants pay for themselves in 6 years)

⚡️Marktposition & competitive advantages

WM is the largest waste management company in North America with:

• 12,000 natural gas trucks - largest fleet in the industry
• Largest recycling network in North America
• Market leader in landfill gas-to-energy

Why is this important?

• Leading infrastructure means economies of scale & cost leadership
• Competition can hardly keep up, which ensures stable margins

WM thus remains the top dog in the waste sector and consistently exploits its economies of scale.

💰Cost optimization and increased efficiency

In 2024, WM implemented several measures to reduce costs and increase efficiency:

• 60.7% of revenue went towards operating costs - a decrease from 61.7% in 2023
• Digital automation in recycling centers reduces labor costs in the long term
• Frontline retention programs improve employee loyalty

WM has not only grown through acquisitions, but is also optimizing existing processes.

...I have heard renewable energy and sustainability projects?...

🚨 Trump 2.0: risk for renewable projects?

Classification independent of the annual report

WM has made significant investments in renewable energy in recent years, including the development of plants to convert landfill gas into renewable natural gas (RNG). The company plans to invest over USD 1.4 billion between 2022 and 2026 in the construction of new facilities to convert landfill gas into pipeline-quality RNG. [2]

These projects are not only environmentally friendly, but also economically attractive as they will help power WM's own natural gas fleet and feed surplus energy into the grid.

Potential challenges and opportunities

Although the current government is less supportive of renewable energy projects, WM's investments in RNG may be less affected as they reduce methane emissions and thus offer environmental benefits that could be recognized even under a fossil-friendly policy.

Nevertheless, changes in the regulation and financing of renewable energy could affect the viability and expansion of such projects. WM must therefore closely monitor policy developments and adapt its strategies where necessary to achieve both environmental and economic goals.

The Trump administration favors fossil fuels and is limiting support for renewable energy. For WM, this means potential challenges, but also the opportunity to continue to operate successfully in the renewable energy sector through innovative approaches and adaptability.

🔮 Outlook 2025

Expectations for 2025: Ambitious growth targets

• WM is planning strong growth for 2025 with an increase in sales of 16.4% to up to USD 25.80 billion (driven by 5.7% organic growth and 10.7% through acquisitions)
• Adjusted EBITDA is expected to increase by 15% to up to $7.65 billion
• WM Healthcare Solutions to grow by 9%, supported by operational optimizations

🌟 The strengths:

• Defensive business model - waste disposal will always be necessary.
• Pricing power - Higher prices drive growth.
• Sustainability projects are highly profitable.
• Stericycle takeover opens up new growth areas.

⚠️ Challenges:

• High debt - pause share buybacks, focus on debt reduction.
• Trump & renewable energies - Political uncertainties, but biogas remains profitable.
• Commodity price fluctuations - recycling depends on market prices.

Personal assessment

WM remains a defensive long-term investment, but not cheaply valued. The integration of Stericycle, the sustainability strategy and the high cash flow make the company attractive. In the long term, however, I believe WM will be more affected by political influences than before. I am currently still running a savings plan, so the total share in the portfolio will rise to around 4% over the next few months.

Thanks for reading this far. Furthermore, it is understood that my personal opinion does not constitute investment advice or a recommendation to buy or sell.

_________

Sources:

[1] https://investors.wm.com/static-files/8b64fa87-7d93-423c-9647-defc1fe353e4

[2] https://www.waste360.com/fleet-technology/wm-s-malik-on-the-company-s-rng-investment-strategies-and-near-future-plans?utm_source=chatgpt.com

$WM (-0.95%)
$RSG (+0.39%)
$CLH (+3.17%)
$CWST (-1.09%)

$RSG (+0.39%)
$VIE (+0.79%)

Because I like his videos, here comes another analysis

And this time it's the biggest single position in my portfolio 😁

https://youtu.be/Pni2Jl4mW7I?si=KmYbNR_6-dOGrIJ2

Today was finally the day.

Just as I had long hoped and expected, $RSG (+0.39%) the smaller competitor of $WM (-0.95%) has temporarily managed to overtake its big rival on the charts 😁

Fingers crossed that this performance continues 😜 😃

Part 5 of 5
/ Review of the year 2024: In the first 4 parts

of my investment story, I looked at the years 2013 to 2023.

A mixture of highs and lows. While there was a lot of learning at the beginning, the last few years are finally bearing fruit!

Monthly view:

2024 was another very positive year, although December again resulted in a slight loss in the portfolio.

In total, December was -0,8%. This corresponds to price losses of -3.200€.

The MSCI World (benchmark) was -0.9% and the S&P500 -2.5%.

In the following, however, I would like to look primarily at the whole of 2024 and not

just December.

Year as a whole:

Winners & losers:

The winner par excellence is hardly surprising NVIDIA $NVDA (-3.63%) with

almost €20,000 in share price gains! And this despite the fact that I took my entire stake of ~€4,000 off the table in March.

In 2nd place follows Bitcoin
$BTC (+0.76%) with approx. 6,000€ price gains. 3rd-5th place

are shared by TSMC $TSM (-0.58%)
Alphabet $GOOG (-2.32%) and Meta
$META (-1.11%) with gains of ~€5,000 each.

On the loser side it looks very relaxed all in all.

Sartorius $SRT (-2.19%)
Nike $NKE (-0.48%)

and Bechtle $BC8 (-0.42%) have each caused share price losses of ~€1,000. They are followed by LVMH $MC (+0.4%) with share price losses of €500 and Amgen $AMGN (+3.04%) with €200.

All in all, share price losses that are not really worth mentioning.

The performance-neutral movements in 2024 were just under €20,000. This is a significant decline compared to the almost €30,000 from previous years. This was due to some private issues and the upcoming house construction.

My performance for the year as a whole was +28,8% and therefore outperformed my benchmark, the MSCI World, by 25.8%.

In total, my portfolio currently stands at ~347.000€. This

corresponds to an absolute growth of ~95,000€ in the current

year 2023. ~71.000€ of which comes from price gains, ~3.800€ from

dividends / interest and ~20.000€ from additional investments.

Dividend:

• The dividends in December were 17% above the previous year at ~€370
• Amgen is in the lead with over 50€ (gross) dividend every 3 months
• For the year as a whole, my dividends amounted to ~2.900€ and thus almost 25% over 2023

Buys & sells:

- I bought in December for a significantly reduced ~500€

- As always, my savings plans were executed:

- Blue chips: Lockheed Martin $LMT (+2.16%) Republic Services $RSG (+0.39%) Thermo Fisher $TMO (-0.59%) ASML $ASML (-0.72%) Northrop Grumman $NOC (+2.66%) Itochu $8001 (+0.66%) Constellation Software $CSU (-0.46%) Hermes $RMS Salesforce $CRM (-2.41%) MasterCard $MA (-0.3%) Deere $DE (-2.08%)

- Growth: -

- ETFs: MSCI World $XDWD (-0.98%) and the WisdomTree Global Quality Dividend Growth $GGRP (-0.99%)

- Crypto: Bitcoin $BTC (+0.76%) and Ethereum $ETH (+1.78%)

- There were no further sales in December

Target 2024 & outlook 2025:

My goal for 2024 was to reach €300,000 in the portfolio. Due to the

extremely positive market performance in the current year, my portfolio stands at ~€ 350,000 at the end of the year. I was therefore able to significantly exceed my target.

What will happen in 2025? The logical target, of course, would be 400.000€ to be achieved. However, due to the upcoming house construction, part of the assets will be invested in the house construction. If I include the property in my statement of assets, the target of €400,000 would of course not change.

However, as I am more likely to be tracking my liquid assets here, I will probably

probably refrain from doing so.

Therefore, my year-end target for 2025 will probably be closer to the final balance for 2024. So around €350,000 at the end of 2025.

How are things looking for you? Have you already thought about your plans for 2025?

Finally, I wanted to say thank you again for all the positive reactions to my investment story!

https://linktr.ee/mister.ultra

#dividends
#dividende
#rückblick
#depotupdate
#aktie
#stocks
#etfs
#crypto
#personalstrategy

Republic services Q3 2024 $RSG (+0.39%)

Financial performance:

Republic Services reported strong financial performance in the third quarter of 2024, with total revenue growing 6.5% compared to the same period in 2023, reaching $4,076.2 million. Net income for the quarter was $565.7 million, or $1.80 per diluted share, compared to $480.2 million, or $1.52 per diluted share, in the third quarter of 2023. Adjusted net income was $568.3 million, or $1.81 per diluted share, an increase from $488.3 million, or $1.54 per diluted share, a year ago.

Balance Sheet Analysis:

As of September 30, 2024, Republic Services had total assets of $31,814.2 million, an increase from $31,410.1 million at the end of 2023. Current assets decreased slightly to $2,348.4 million from $2,381.0 million. Total liabilities increased to USD 20,585.4 million from USD 20,866.6 million. Shareholders' equity increased to USD 11,230.2 million from USD 10,543.5 million.

Income statement:

Revenue for the nine months ended September 30, 2024 was USD 11,986.0 million, compared to USD 11,132.9 million for the same period in 2023, and the company achieved 210 basis points of Adjusted EBITDA margin expansion. Selling, general and administrative expenses amounted to USD 406.0 million for the quarter, representing 10.0% of revenue and a slight decrease from 10.5% in the prior year.

Cash Flow Analysis:

Cash flow from operating activities for the nine months ended September 30, 2024 was USD 2,914.0 million, compared to USD 2,719.3 million in 2023. Adjusted free cash flow decreased to USD 1,736.5 million, compared to USD 1,827.4 million in the prior year. The company invested USD 1,357.4 million in property, plant and equipment during the reporting period.

Key figures and profitability:

The company's net profit margin expanded by 130 basis points. The adjusted EBITDA margin increased by 210 basis points. Days sales outstanding improved slightly to 41.2 days from 42.0 days.

Segment analysis:

The Collection segment, which includes residential, small container and large container services, contributed 67.3% of total revenue for the quarter. The Environmental Services segment showed significant growth, with net sales increasing to USD 464.7 million compared to USD 404.8 million in the previous year.

Competitive Analysis:

Republic Services continues to focus on strategic pricing and cost management to remain competitive. The company's commitment to sustainability and circular initiatives positions it well in the environmental services industry.

Forecasts and management commentary:

Management emphasized the execution of strategic priorities, including pricing ahead of cost inflation and effective cost management, as key performance drivers. The company expects to continue to benefit from these strategies in future periods.

Risks and opportunities:

Significant risks include economic conditions, interest rate changes and integration challenges from acquisitions. Opportunities lie in the expansion of sustainability initiatives and the optimization of operating processes.

Summary and strategic implications:

Republic Services showed a robust financial performance with significant sales growth and margin expansion. The company's strategic focus on pricing and cost management as well as sustainability initiatives supports long-term growth potential. The balance sheet remains strong, with increasing equity and manageable debt. The company is well positioned to capitalize on market opportunities while managing potential risks.

Positive statements:

Revenue growth: Republic Services reported a 6.5% increase in total revenue in the third quarter of 2024 compared to the same period in 2023, indicating strong company performance.

Increase in net profit: The company reported net income of $565.7 million for the quarter, compared to $480.2 million in the prior year, reflecting improved profitability.

EBITDA margin expansion: Adjusted EBITDA margin expanded 210 basis points, reflecting effective cost management and operational efficiencies.

Strong operating cash flow: Cash flow from operating activities increased to USD 2,914.0 million for the nine months ended September 30, 2024, highlighting robust cash generation.

Strategic focus on sustainability: The company's commitment to sustainability and circular initiatives positions it well in the environmental industry and is in line with market trends.

Negative statements:

Decline in free cash flow: Adjusted free cash flow decreased to USD 1,736.5 million from USD 1,827.4 million in the prior year, indicating a decrease in funds available for discretionary purposes.

Increased liabilities: Total liabilities increased slightly, which could affect the company's leverage and financial flexibility.

Increase in interest expenses: Interest expense increased to $405.8 million for the nine months ended September 30, 2024, compared to $378.8 million in 2023, potentially impacting net income.

Volume decline: The company experienced a 1.2% decrease in volume for the three months ended September 30, 2024, which could impact future revenue growth.

Integration risks: The company faces integration challenges in acquisitions, which could pose risks to the realization of expected benefits.

Republic Services $RSG (+0.39%)

EPS beats estimates by $0.20

Sales for the past quarter amounted to 4.08B$, the average estimate had been 4.12B$.

Hello everyone,

How do I find out which sector a share is assigned to at Getquin before I buy it?

For example, I have $WMT (-2.31%) and $COST (+0.22%) in my portfolio and these are divided into different sectors.

How do I know, for example $RSG (+0.39%) which sector it is?

Thank you very much for your help.

Depot review September 2024 - The first green September in my depot since 2019 📈

September is generally regarded as the worst month on the stock market, with a negative monthly performance more than 50% of the time. This is also consistent with my experience since 2013. In 11 years, it has been negative 6 times and positive 5 times. From 2020 to 2023, the last 4 years were all negative. However, September 2024 is now the first positive September since 2019, which means it is exactly 50/50 for me - 6 positive and 6 negative Septembers since 2013.

The Fed's interest rate turnaround and the stimulus in China have certainly contributed to the positive trend

Monthly view:

In total, September was +1,2%. This corresponds to price gains of ~3.600€.

The MSCI World (benchmark) was +1.0% and the S&P500 +1.3%

Winners & losers:

A look at the winners and losers is particularly exciting this month.

On the winning side at the very top are my China ETF with € +1,300 and is thus back in the green for the first time in a long time. The following winners are also a colorful mix with Meta, Bitcoin, Home Depot and Sea. Really a very broad mix with no clear tendency towards regions, sectors or the like

On the loser side in my portfolio in September were mainly pharmaceutical stocks. Novo Nordisk, Amgen and Johnson & Johnson. Even worse, with price losses of ~€700 each, were only Palo Alto Networks and ASML.

The performance-neutral movements in September were just under €4,500. The premium refund from my private health insurance also played a large part in this. In September, I received over €2,000 back for the year 2023, which was of course invested directly to compensate for any higher pension contributions.

Current year:

My performance in the current year is +20,4% and thus above my benchmark, the MSCI World with 17.2%.

In total, my portfolio currently stands at ~321.000€. This corresponds to an absolute growth of ~€69,000 in the current year 2023. ~49.000€ of this comes from price increases, ~2.800€ from dividends / interest and ~17.000€ from additional investments.

Dividend:

• Dividends in September were 23% above the previous year at ~€360
• Amgen is in the lead with a (gross) dividend of €50 every 3 months. But Johnson & Johnson with €45 is also a delight
• In the current year, the dividends after 9 months are +25% over the first 9 months of 2023 at ~2.210€

Buys & sells:

• I bought in September for approx. 3,500€. 2,100 of this came from the premium refund from my private health insurance and went into the WisdomTree Global Quality Dividend Growth
• As always, my savings plans were executed:
• Blue ChipsLockheed Martin $LMT (+2.16%) Republic Services $RSG (+0.39%) Thermo Fisher $TMO (-0.59%) ASML $ASML (-0.72%) MasterCard $MA (-0.3%) Deere $DE (-2.08%) Northrop Grumman $NOC (+2.66%) Itochu $8001 (+0.66%) Salesforce $CRM (-2.41%) Hermes $RMS (+0.11%) Constellation Software $CSU (-0.46%)
• 
  Growth: -
• ETFsMSCI World $XDWD (-0.98%) Nikkei 225 $XDJP (+0.1%) and the WisdomTree Global Quality Dividend Growth $GGRP (-0.99%)
• 
  Crypto: Bitcoin $BTC (+0.76%) and Ethereum $ETH (+1.78%)
• 
  Sales there were none in September

Target 2024:

My goal for this year is to reach €300,000 in my portfolio. Due to the extremely positive market development in the current year, my portfolio currently stands at ~€321,000.

At the beginning of September, my portfolio was still quite a bit lower at €304,000 due to the weak start to the month. At this point, it was therefore quite a way off the previous high of €320,000 in June.

I have now reached a new high of €321,000 and am optimistic that I can still beat my year-end target of €300,000.

#dividends

#dividende

#rückblick

#depotupdate

#aktie

#stocks

#etfs

#crypto

#personalstrategy

New in my portfolio :)