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104I bought waste
(Not literally or is it?)
The company recently reported another strong set of figures and in my opinion is in a very solid position.
However, the share has lost over 5% in the last few days. Perhaps this is due to the insider sale of 5.5 million dollars by John j Morris? Or perhaps there is a lot of shifting from defensive stocks into tech stocks at the moment?
I don't know the answer, but I took advantage of the supposed opportunity for the first tranche
Before the moment is over again, I would like to take a moment to celebrate my first small milestone: after almost a year of active trading, I have reached €10,000.
Most of the time I was still a student - with small savings rates, a lot of curiosity and learning by doing (and many mistakes). I've now been working as an engineer for a month and can invest properly for the first time. I'm excited to see where the journey will take me.
I am pursuing a long-term growth strategy, but I also like the charm of dividends as a motivator. With half of the bonuses, I will probably buy individual shares or burn a penny or two by gambling.
I know things aren't going perfectly, but I'm prepared to learn from mistakes and constantly question my strategy.
One small fly in the ointment: my Mercedes shares are currently still blocked.
I look forward to your feedback, experiences and tips - on the subject of crypto, I'm still torn as to whether I've missed the party.
Savings plans: 690€
200€ - $IWDA (-0.56%)
60€ - $EIMI (-0.47%)
40€ each - $JEGP (-0.25%)
$MAIN (-0.99%)
25€ each - $NOVO B (-0.31%)
$HTGC (-1.14%)
$GOOGL (-1.29%)
$WMT (-0.85%)
$CRWD (-2.75%)
$AMZN (-0.55%)
$MELI (-1.84%)
$META (-1.13%)
$NET (+0%)
$ALV (-0.37%)
$WM (-0.4%)
$ASML (-0.84%)
$SAP (-1.47%)
$PLTR (-2.99%)
Waste Management $WM (-0.4%) is the third largest position in my portfolio with approx. 4.5%... and I feel quite comfortable with that.
The Q1 figures came out on 29.04. I have categorized the figures for myself.
With this post and my general classifications, I am also trying to provide a good, comprehensible overview to give all "shareholders" or future shareholders an adequate insight and ensure an understanding of the company.
SourcesQ1 Report [1] and Earnings Call [2]
WM presents a strong Q1, with double-digit sales growth and a solid operating performance. However, earnings per share are lower despite record sales. Find out why this is not necessarily a bad sign here. Have fun!
📊 ESTIMATES VS. REPORTED
📊 Q1 figures at a glance
Why is sales growing strongly but EPS falling?
In the first quarter of 2025, WM reported adjusted EPS of $1.67, compared to $1.75 in the previous year, despite a +16.7% jump in sales, does that sound alarming at first? But it's not...
1 . The Stericycle takeover has a double effect: (more context later)
Sales increase because Stericycle is now fully included in the balance sheet ($619m sales in Q1).
At the same time, however, costs are also rising:
All of this has a negative impact on earnings per share, even though the new division is already profitable.
2 . Special tax effects & discontinuation of subsidies
3 . Higher capital costs put pressure on free cash flow
Conclusion so far: The falling EPS is not a warning signal, but a consequence of...
In the long term, EPS should improve again significantly as soon as synergies from the Stericycle integration and new RNG/recycling plants take effect.
🚛 What is the traditional core business doing?
The so-called legacy business includes:
Q1 2025:
Growth driver:
COO John Morris:
"We reduced operating costs for the sixth consecutive quarter, now at 60.5% of sales."
The reason for this:
Comment (COO John Morris):
"This was the fourth quarter in a row with a 30% margin and that despite a difficult basis for comparison and winter influences."
WM is concentrating on quality rather than volume, more income through targeted pricing and a focus on high-margin customers.
💊 WM Healthcare Solutions Stericycle takeover: between waste and medicine, WM reorganizes itself
WM acquired Stericycle, the leading provider of medical waste disposal, for $7.2 billion in 2024.
The business is less cyclical, fast-growing and in a regulated market.
Q1 2025:
-> e.g. through joint administration, logistics, location optimization
Comment (CEO):
"Our customers value our digital environmental platform and nationwide network - a clear competitive advantage."
♻️ Recycling & Renewable Energy
Q1 2025:
An EBITDA contribution of $18 million compared to total EBITDA of $1.72 billion?
That sounds vanishingly small? I asked myself the same question...
Why the amount seems low, but still fits
1 . Recycling & Renewable Energy are capital-intensive, long-term oriented
2 . Growth still in the start-up phase
3 . Recycling margins are heavily dependent on raw material prices
4 . Benchmark: 20% growth YoY
➡️ It is a growing business area with long-term potential. EBITDA contributions will increase in the next quarters & years as soon as new plants are up and running.
💰 Further financial figures
Further voices from the earnings call:
CFO Devina Rankin on financial strategy & risks
"Despite interest burden and investments, we are fully on track - operational strength and synergy potential remain intact."
CEO Jim Fish emphasized:
"I'm proud of the fact that we've become a predictably strong performer, quarter after quarter, over the past few years."
He sees WM in a strong strategic position, particularly thanks to three drivers:
Particularly exciting:
"Our sustainability strategy is working, these projects are delivering strong, growth-oriented EBITDA."
The call once again showed how operational fine-tuning, automation and acquisitions go hand in hand and underlined the following points:
P/E ratio & current valuation (personal assessment, no investment advice)
Current level: ~ 34,49
In recent years: between 25-30
➡️ the current P/E ratio signals that the market believes WM will continue to enjoy stable growth and security.
Are there any special effects in earnings that distort the P/E ratio?
Yes, the ones already mentioned. Nevertheless, explained again:
1 . EPS (earnings per share) is currently falling slightly due to:
➡️ This means:
➡️ The current high P/E ratio is explainable and temporary
🔮 Conclusion & outlook
WM remains a fundamental long-term runner with vision.
Although the Stericycle financing is putting pressure on EPS and cash flow in the short term, the focus on high-margin areas, sustainability and healthcare opens up long-term potential.
My conclusion: WM delivers structurally, those who think long-term will find stability and perspective here.
I remain invested, position will not be increased for the time being.
________________
Thank you for reading 🤝
________________
Sources:
[1] https://investors.wm.com/static-files/00de6f79-f0b6-4b6a-af79-9e5f892c73f5
[2] https://investors.wm.com/static-files/9db3d0d5-0c4d-47fa-aab1-f0bf71a86859
_______________
$WM (-0.4%)
$RSG (-0.76%)
$WCN (-1.23%)
$CLH (-1.17%)
$CWST (-2.17%)
Waste Management Inc.$WM (-0.4%) ) slightly missed analysts' expectations in the first quarter of 2025, which led to a 1.6% decline in the share price after trading hours. Adjusted earnings per share (EPS) were USD 1.67 (expected: USD 1.69) and revenue was USD 6.02 billion (expected: USD 6.15 billion), although revenue still increased by 16.7% compared to the previous year.
Key findings
Corporate performance
WM achieved solid growth in its core business, driven by disciplined price increases and efficiency measures. The newly integrated Healthcare Solutions segment made a significant contribution to sales and EBITDA growth. The operating margin of the core business remained stable at 30% and operating EBITDA increased by 6% to USD 1.62 billion.
Financial highlights
Outlook & forecast
Waste Management confirmed its outlook for the full year 2025 and emphasized the resilience of its business model and the successful integration of new business areas. The company remains on track to achieve its strategic and financial targets.
Statements from the management
CEO Jim Fish emphasized the strong implementation of the strategic priorities and underlined the sustainable growth strategy as well as the value contribution of the Stericycle acquisition.
Risks & challenges
Atlas Copco $ATCO B (-0.26%)
BAE Systems $BA. (-2.47%)
Rollins $ROL (-0.39%)
Cintas $CTAS (-1.39%)
Waste Management $WM (-0.4%)
Parker Han$PH (-0.54%)
Which companies do you see as particularly promising for a long-term investment?
I think it's about time. But not for an all-in, because 🍊 is unpredictable 😄
Also bought:
$AMZN (-0.55%) (x2) $GOOGL (-1.29%) (x2) $NVDA (-2.94%) (already a few days ago) $DELL (+3.1%) (x2) $PG (-0.1%)
x2 means a few days ago and today.
At the top of the list are $NEE (+1.83%)
$WM (-0.4%)
$ORI (+0.24%)
$PANW (-2.51%)
$HD (-1.39%)
PS: my crystal ball says it's time, because we've now approached a zone twice. But whether this is actually a first indicator of a positive outlook... who knows...
Do you believe the reallocation of $O (+0.12%) and $WM (-0.4%) (approx. €2,500 together) to $IWDA (-0.56%) would be worthwhile at the current price?
The first quarter of 2025 is over. In March, real assets recorded declines, both in equities and ETFs and especially in cryptocurrencies. The markets have become increasingly volatile. While many are panicking, I have been enjoying the first signs of spring, hiking and continuing to winter bathe diligently.
For the past month of March 2025, I present the following points:
➡️ SHARES
➡️ ETFS
➡️ DISTRIBUTIONS
➡️ CASHBACK
➡️ AFTER-PURCHASES
➡️ P2P CREDITS
➡️ CRYPTO
➡️ AND OTHER?
➡️ OUTLOOK
➡️ Shares
There was a considerable setback in March, and not just in equities. The reason for this is the customs issue, on which I have already formulated my thesis, which many believe to be correct. To summarize briefly: Markets are being depressed to get investors into bonds, which lowers bond yields and allows US debt to be refinanced at a lower interest rate. After the refinancing of short-term US government bonds, the tariffs are put into perspective and the next upswing follows, which Trump can boast about. Whether this assumption is correct remains to be seen. However, it would make sense in the long term to slash US spending. Even if the D.O.G.E. does a good job, you can't cut everything without incurring the displeasure of the population.
A look at the depot shows the front-runner $AVGO (-2.2%) and its companion $NFLX (-2.74%) both currently only 150% up, despite a significant setback. I am unimpressed by this development, as the capital market is always facing worse times, which will be followed by better ones. According to André Kostolany, it is now the "shaky hands" that are significantly triggering the sell-off. Yes, change your perspective: the red sign in your portfolio is irrelevant, now is the time to buy more. Enormous overvaluations in tech stocks have been reduced and they may now be available at a fairer price. There are also attractive defensive value stocks on offer, ideal for a dividend portfolio.
Second and fourth place in my individual share portfolio are still occupied by $WMT (-0.85%) and $SAP (-1.47%) . Walmart can now prove that it acts as a stable anchor in the portfolio even in bad times. In sixth place is a stock that I did not expect to be in the top 10. Like me, many of you have shares in $WM (-0.4%) but the stock I am looking for is its competitor: $RSG (-3.23%) . I have been watching the rise of this stock even before the pressure from Trump and I am happy about it. This is an example of a defensive stock. Garbage collection is necessary and Republic Services, like Waste Management, will literally turn garbage into gold for shareholders 50 years from now. Anyone complaining about their portfolio being down 50% probably has too much tech and too little defensive. My overall portfolio currently stands at around -12%. That's OK in the current macro environment.
Which brings us to the subject of performance: $NKE0 and $DHR (+0.11%) returned around -39% at the end of March.
➡️ ETFs
They are also recording significant losses. It is important to remain calm and continue investing. Such phases are part of the game. I will not repeat further details.
➡️ Distributions
In March, I received 31 distributions on 15 payout days. I am grateful for this additional income stream. Everyone should build up such additional income.
This time, the distributions from my three large ETFs were not made on March 31, but in the first few days of April. This means that there should theoretically be 34 distributions. Numerous corrections and cancellations of dividends from REITs were not taken into account. With $O (+0.12%) , $OHI (-0.46%) , $LTC (-0.61%) and $STAG (+0.49%) there were therefore some cancellations and new dividend distributions. Although this was a major bureaucratic effort, it was usually a cause for celebration. This is because the REITs initially distribute dividends from current net income. If there are then corrections in the following year, it is determined that a distribution is also made from the already taxed retained earnings. This subsequently reduces the company's tax burden and I have noticed that I pay less capital gains tax and solidarity surcharge. So more cash in my pocket for reinvestment.
➡️ Cashback
In March, I received a small amount of income from an expense report, which I invested directly in my custody account. More on this under subsequent purchases.
➡️ Subsequent purchases
The additional purchases were financed from the expense report and, above all, from the bonus paid out by my employer. I am grateful for this, as my employer is not doing well at the moment.
I made numerous additional purchases in several ETFs that are in my small old portfolios. I invested smaller sums $GGRP (-0.7%) , $JEGP (-0.25%) , $SPYW (-0.13%) , $FGEQ (-1.21%) and $SPYD (-0.73%) and bought a larger sum in shares of the $IWDP. On the last Friday in March, I checked my portfolio and realized that, despite careful use of the surplus, there was more cash left than I had expected. I therefore made a small additional purchase in the $VNA (-2.97%) . For me, Vonovia (like the REITs) is a kind of hedge against my own rising rent.
➡️ P2P loans
With my last P2P platform, Mintos, there were no interest or redemption payments. I still intend to withdraw all funds where released. I would even accept a full write-off to get out of the platform. The remaining amount is no longer relevant to me.
➡️ Crypto
Crypto investors continued to experience significant volatility in March. The double top predicted by some does not seem to be materializing and the indicators do not currently point to a steep rise. I am studying the charting and the macro environment for crypto, although I still have a lot to learn here. Patience and calm are still required. I am sticking to my cycle strategy, the macro situation confirms me, so there is no need for me to take any action.
➡️ And what else?
I'm currently deepening my knowledge of AI. The posts on my Instagram channel that I published in March (and others that will follow in April) were created with the help of AI. I explained my approaches, beliefs about finance and the frugal lifestyle, and my goals to AI. The AI then created suggestions for Instagram posts, including prompts and allowing for a week break at the end of the month.
There is still a lot for me to learn. I am using AI more and more intensively and deeply in my professional and private life. While colleagues are happy that an AI can write emails for them, I use it much more extensively, for example to have technical content and its effects on departments and companies explained to me at work or to have economic relationships explained to me in my private life. In addition to ChatGPT, I particularly like Grok by X, as this AI always asks questions and thus enables a fluid conversation. The AI doesn't just reproduce facts, but also evaluates my ideas and classifies them, for example whether I should already use part of my nest egg to buy more quality stocks at favorable prices. Her suggestion was perhaps to wait until after the refinancing of short-term US government debt, when there might be less downward volatility in the market. This recommendation is based on my thesis mentioned above.
March was also a month of fasting for me, not for religious reasons, but because I want to and always intend to. I like to use the time after fasting to change my habits, adjust my diet and vary my sports units and routines. For me, this is particularly easy after fasting - the time afterwards generally feels like a new beginning.
➡️ Outlook
In April we will continue to see negative signs in the portfolio. I have now placed a limit order, which I hope will be triggered. The annual electricity bill is also due. I'm curious to see how much will be returned, the refund will certainly go into the custody account. It will also become clear whether I will increase my discount due to higher electricity costs. Until then!
Links:
Social media links can be found in my profile, you can also take a look at the Instagram version of my review.
All these shares have one problem, you are not the only one who has this thought and that is why they are rarely good value😊, when I built up my position over the last 3 years, there was practically no opportunity to add them to my portfolio at a lower price, yet I continued to buy them and made my purchase price even more expensive.
That's one of the mistakes you can make as an investor, and I've made it too, only adding to positions that are in the red and neglecting the supposedly expensive positions that are doing well.
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