2 TSX Waste Management Stocks To Explore Amid COVID-19 Surge

Source: Juice Flair, Shutterstock

Summary

  • As coronavirus cases continue to surge across the world, more businesses and individuals are becoming mindful about the proper disposal of trash and other hygiene related issues.
  • The World Health Organisation (WHO) mentions in its advisory that provision for waste management and hygienic conditions are necessary to keep infectious disease outbreaks like COVID-19 at bay.
  • This is likely to trigger a boost in business for the waste management industry.

As coronavirus cases continue to surge across the world, more businesses and individuals are becoming mindful about the proper disposal of trash and other hygiene related issues. The World Health Organisation (WHO) mentions in its advisory that provision for waste management and hygienic conditions are necessary to keep infectious disease outbreaks like COVID-19 at bay. This is likely to trigger a boost in business for the waste management industry.

If you are on the lookout for waste management stocks, here are two companies you could explore – Waste Connections Inc (TSX:WCN) and GFL Environmental Inc (TSX:GFL).

Source: Pixabay

Waste Connections Inc (TSX:WCN)


One of the largest providers of solid waste management solutions and recycling services in North America, Waste Connections Inc (TSX:WCN) has a market cap  of C$ 37.7 billion, a price-to-book ratio (P/B) of 4.35 and offers a 2.84 per cent return on equity (ROE).

The Ontario-based company also offers a dividend of US$ 0.205 on a quarterly basis and its dividend yield is at 0.724 per cent, as per TMX data. In the last five years, the rate of dividend growth for Waste Connections was 16.62 per cent.

Source: Pixabay

Waste Connections’ stock grew about 24 per cent in the past year. This year, the scrip expanded by about 11 per cent.

The Canadian company recorded a revenue of US$ 1.39 billion in Q4 2020, up from that of US$ 1.36 billion in Q4 2019.

In 2020, Waste Connections’ cash and cash equivalents rose to US$ 617.2 million from that of US$ 326.7 million in 2019.

GFL Environmental Inc. (TSX: GFL)


Currently holding a market cap of C$ 13.3 billion, GFL Environmental offers waste management services for non-hazardous solid and liquid waste and other environmental solutions in Canada and the US. GFL holds a P/B ratio of 2.57 and offers a quarterly dividend of US$ 0.011. It has a dividend yield of 0.126 per cent, according to TMX data.

GFL's stock soared by about 110 per cent in the past year. Its scrips also surged by nearly 24 per cent YTD. As per the closing price of C$ 44.11 from April 12, GFL stock is about four per cent down from its 52-week high of C$ 45.91 and nearly 119 per cent up against its 52-week low of C$ 20.18.

In its latest full-year financial results, GFL’s total revenue of C$ 4.19 billion in 202 posted an increase of about 25 per cent year-over-year (YoY). Its adjusted EBITDA of C$ 1.07 billion was up by 30.4 per cent in 2020.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.

Comment


Disclaimer

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK