tiprankstipranks
Inside Waste Management’s Newly Added Risk Factors
Market News

Inside Waste Management’s Newly Added Risk Factors

Waste Management (WM) is a waste management and environmental services firm that serves residential, commercial, industrial, and municipal clients in North America.

The company recently released its fourth-quarter results. On a year-over-year basis, overall revenues climbed 15% to $4.68 billion. In addition, diluted adjusted earnings per share climbed 11.5% year-over-year to $1.26 per share.

Waste Management ended the fourth quarter with $118 million in cash and cash equivalents and $12.7 billion in long-term debt.

Let’s look at the risk factors for Waste Management using the new Tipranks’ Risk Factors tool.

Risk Factors

Waste Management’s main risk category is Legal & Regulatory, which accounts for 11 of the total 34 risks identified. The next two major risks fall under the Production and Tech & Innovation categories, which account for 7 and 5 risks, respectively.

In its recent report, the organization warned investors about two new risks.

The first new risk factor added by Waste Management falls under the Legal and Regulatory category.

In September 2021, President Biden issued an executive order requiring all enterprises with U.S. federal contracts to ensure that their personnel is fully vaccinated against COVID-19. In addition to the aforementioned, further immunization requirements may be imposed. The company emphasizes that it must adhere to these standards as it is now party to certain service agreements with the U.S. government.

Implementing these vaccination requirements, according to Waste Management, might result in considerable costs, operational disruptions, staff churn, and difficulty fulfilling future labor demands in an already tight labor market.

Another recently added risk for the organization falls under the Macro & Political category.

Some macroeconomic restrictions, according to Waste Management, were more severe in the second half of 2021 and are still present, partly due to the COVID-19 pandemic. The company argues that the tight labor market has resulted in greater expenditures on wage adjustments, overtime payments, and the training of new personnel.

Waste Management further warns investors that other worldwide challenges, such as supply chain disruptions, transportation bottlenecks, and inflationary pressure may further increase the company’s operational expenditures. Furthermore, the firm states that it is facing margin challenges as a result of factors like increasing fuel prices. If any of these issues persist for a long period, they may have a significant negative influence on the company’s earnings.

Wall Street’s Take

Turning to Wall Street, the stock has a Moderate Buy consensus rating based on 2 Buys and 5 Holds. The average WM price target of $161.50 implies 13.3% upside potential to current levels.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Related News :
Keyera Swings to Profit in Q4
Sabre Posts Upbeat Q4 Revenues & FY2022 Outlook; Shares Up 21.9%
Barrick Gold Q4 Beats Expectations, Dividend Raised


Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles