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Sergey Savastiouk's Avatar
published in Blogs
Apr 15, 2019

Waste Management (WM, $104.46) to buy Advanced Disposal Services (ADSW, $32.28) for $4.9 billion

Waste Management is set to buy rival Advanced Disposal Services.

The deal, worth $4.9 billion including debt, will have the waste management & environment services company paying $33.15 a share in cash for Advanced Disposal.  According to the Wall Street Journal (WSJ), the acquisition is Waste Management's biggest till date. 

Business Wire reports that more than $100 Million of projected annual cost and capital expenditure synergies are expected to in a post-Synergy transaction multiple well below Waste Management's current trading multiple.

Advanced Disposal is partly owned by the Canada Pension Plan Investment Board, which has agreed to vote for the deal, according to WSJ. Advanced Disposal caters to around 2.8 million residential customers and 200,000 commercial customers.

Related Ticker: WM

WM in upward trend: price rose above 50-day moving average on January 30, 2025

WM moved above its 50-day moving average on January 30, 2025 date and that indicates a change from a downward trend to an upward trend. In of 42 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Moving Average Convergence Divergence (MACD) for WM just turned positive on March 03, 2025. Looking at past instances where WM's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .

The 10-day moving average for WM crossed bullishly above the 50-day moving average on January 31, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WM advanced for three days, in of 359 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 339 cases where WM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.

The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.

WM broke above its upper Bollinger Band on February 28, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. WM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.392) is normal, around the industry mean (5.630). P/E Ratio (37.617) is within average values for comparable stocks, (52.976). Projected Growth (PEG Ratio) (2.947) is also within normal values, averaging (2.487). Dividend Yield (0.013) settles around the average of (0.064) among similar stocks. P/S Ratio (4.241) is also within normal values, averaging (144.835).

Notable companies

The most notable companies in this group are Enviri Corp (NYSE:NVRI).

Industry description

Environmental Services includes companies that collect and dispose of hazardous and non-hazardous waste. Their services include removal of toxic waste from soil, removing medical waste etc. Some companies also operate incinerators, sewerage systems, waste treatment plants, and landfills. Demand for waste management is likely to rise with increasing urbanization/industrialization. Waste Management, Inc., Republic Services, Inc., Waste Connections, Inc. and Tetra Tech, Inc. are some of the major companies in this business.

Market Cap

The average market capitalization across the Environmental Services Industry is 6.37B. The market cap for tickers in the group ranges from 14.5K to 85.6B. WM holds the highest valuation in this group at 85.6B. The lowest valued company is GLYE at 14.5K.

High and low price notable news

The average weekly price growth across all stocks in the Environmental Services Industry was -0%. For the same Industry, the average monthly price growth was -3%, and the average quarterly price growth was -12%. TESI experienced the highest price growth at 101%, while LICYF experienced the biggest fall at -79%.

Volume

The average weekly volume growth across all stocks in the Environmental Services Industry was 13%. For the same stocks of the Industry, the average monthly volume growth was 24% and the average quarterly volume growth was 109%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 58
P/E Growth Rating: 71
Price Growth Rating: 61
SMR Rating: 78
Profit Risk Rating: 77
Seasonality Score: -9 (-100 ... +100)
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General Information

a provider of waste management services

Industry EnvironmentalServices

Profile
Fundamentals
Details
Industry
Environmental Services
Address
800 Capitol Street
Phone
+1 713 512-6200
Employees
48000
Web
https://www.wm.com