Waste Management Stocks to Buy Now – Progressive Waste Solutions (BIN)
The Toronto-based Progressive Waste Solutions (BIN) provides solid waste collection and disposal services to customers of just about every stripe.
In the U.S., Progressive operates 85 collection operations, 48 transfer stations, 22 landfills, 29 municipal recycling facilities and four landfill gas-to-energy facilities. In Canada, it has 41 collection operations, 19 transfer stations, eight landfills, 21 municipal recycling facilities and one landfill gas-to-energy facility.
BIN has a strong track record of growth through acquisitions — particularly those that mesh with its existing service footprint. Management often has said that the generation of free cash flow is the key to creating shareholder value. The company also will continue to buy back BIN stock.
Meanwhile, Progresive also is bullish on adding compressed natural gas vehicles to its fleet. The company recently estimated that in 2014, 50% to 55% of the replacement vehicles it purchases in the U.S. and Canada will be CNG-fueled. BIN is focused on optimizing local markets and has launched a series of new training programs and tools. This more targeted approach to local markets begun to deliver results.
BIN stock recently touched all-time highs and has registered a modest 5% year-to-date gain. It too is reading overpriced — at a PEG of 3.2 and a forward P/E of more than 20, which is one of the highest in the sector — but there’s still value here, especially as Progressive Waste Solutions continues to win local contracts.
As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned securities.