Should You Invest in Waste Connections?

PHOTO CREDIT: Waste Connections

OVERVIEW

Why You Should?

  1. Waste Connections is a very safe and recession-proof investment. This is because the products and services that it offers are essential for a smooth-running economy and a high quality of life. There will always be some demand for its services which will benefit the company during a time of economic downturn.
  2. The cost of recycling has dropped in part due to the trade tensions caused by the current administration with China, the world’s largest importer of recyclables like paper and plastic. This will benefit the company’s results if they can capitalize on a trade deal with China.
  3. Waste Connections has seen rising revenues and profits over the past couple of financial years due to the factors mentioned above as well as the slow and steady growth of the solid waste industry. This will benefit the company’s future growth. In the financial year of 2019, the company reported revenues of around 5.4 billion and profits of around 567 million. Both of these metrics are lower than what the company reported in the financial year of 2018 when they had revenues of around 5 billion and profits of around 547 million.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. The COVID-19 Pandemic has decreased the demand for Waste Connections commercial and industrial waste solutions as schools and other large locations close down. Waste Connections also has seen a drop in demand for waste solutions offered to the oil and natural gas industry. The company expects these impacts to be short to mid-term.

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.