Waste Management's credit profile benefits from strong returns on invested capital but is offset by its high leverage. - Morningstar Credit Research

Waste Management's credit profile benefits from strong returns on invested capital but is offset by its high leverage.

Waste Management's credit profile benefits from strong returns on invested capital but is offset by its high leverage. - Morningstar Credit Research
Waste Management's credit profile benefits from strong returns on invested capital but is offset by its high leverage.
Published Dec 28, 2016
11 pages — Published Dec 28, 2016
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Brief Excerpt:

...Our BBB+ rating for Waste Management incorporates its position as the nation s largest trash-disposal firm with its high leverage and meaningful cash disbursements to shareholders. Waste Management is North America s leading provider of waste management services. Landfills are difficult to replicate, and the costs and regulatory burdens create high barriers to entry that have helped the company garner a narrow economic moat rating from Morningstar, Inc. that supports its Business Risk pillar. Waste Management benefits from broad customer diversification and general countercyclical trends, further benefiting its Business Risk score. Waste Management has monetized its competitive position into impressive returns on invested capital that help support its Solvency Score, although the boost is offset by a high total liabilities/total asset ratio and gross leverage of around 2.5 times. Waste Management produces strong operating cash flow via its annuitylike collection and disposal contracts,...

  
Source:
Document ID
0C000009LJ_20161228_CREDIT
Ticker
WM=US
Primary ISIN
Primary Sedol
Company
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MLA:
Morningstar Credit Research. "Waste Management's credit profile benefits from strong returns on invested capital but is offset by its high leverage." Dec 28, 2016. Alacra Store. Jun 26, 2019. <http://www.alacrastore.com/storecontent/Morningstar-Credit-Research/Waste-Management-s-credit-profile-benefits-from-strong-returns-on-invested-capital-but-is-offset-by-its-high-leverage-2137-33799>
  
APA:
Morningstar Credit Research. (2016). Waste Management's credit profile benefits from strong returns on invested capital but is offset by its high leverage. Dec 28, 2016. New York, NY: Alacra Store. Retrieved Jun 26, 2019 from <http://www.alacrastore.com/storecontent/Morningstar-Credit-Research/Waste-Management-s-credit-profile-benefits-from-strong-returns-on-invested-capital-but-is-offset-by-its-high-leverage-2137-33799>
  
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