Founded in 1968, Waste Management (WM) owns the largest
network of recycling facilities, transfer stations, landfills, and processing
plants in North America. The company makes money by entering into contracts
with customers to collect, transport, process, store, and dispose of their
waste.
In just 30 years of operation, the company has built an
impressive and diverse base of more than 22 million customers spread across
municipal, residential, commercial and industrial segments in the U.S. and
Canada.
During 2018, WM’s biggest customer represented just 1% of
its annual revenues. The public sector (municipal customers) accounts for 21%
of the firm's revenue, and the largest private industries are retail and
offices at 10% each.
Waste Management’s revenues can be segregated into
collection (54% of 2018 revenues), landfill (20%), transfer (10%), recycling
(7%) and other services (9%). Commercial is the largest segment accounting for
41% of collection revenues, followed by industrial (29%), residential (26%),
and other (4%) segments.
The commercial and industrial businesses are more lucrative
customers for Waste Management because they typically have multi-year contracts
in place, making cash flows more predictable and stable.
Waste Management has paid higher dividends every year since
going public in 2004.
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