DB:0AZ

Stock Analysis Report

Advanced Disposal Services

Executive Summary

Advanced Disposal Services, Inc. provides non-hazardous solid waste collection, transfer, recycling, and disposal services.

Rewards

Trading at 24.1% below its fair value

Earnings are forecast to grow 117.54% per year

Risk Analysis

No risks detected for 0AZ from our risk checks.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Advanced Disposal Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0AZ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

0AZ

1.1%

DE Commercial Services

1.7%

DE Market


1 Year Return

27.6%

0AZ

-0.5%

DE Commercial Services

15.0%

DE Market

Return vs Industry: 0AZ exceeded the German Commercial Services industry which returned -0.5% over the past year.

Return vs Market: 0AZ exceeded the German Market which returned 15% over the past year.


Shareholder returns

0AZIndustryMarket
7 Day1.3%1.1%1.7%
30 Day2.7%1.0%0.8%
90 Day2.7%6.6%3.7%
1 Year27.6%27.6%3.0%-0.5%18.5%15.0%
3 Year46.4%46.4%11.3%1.6%17.1%6.9%
5 Yearn/a2.6%-11.7%24.3%7.3%

Price Volatility Vs. Market

How volatile is Advanced Disposal Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Advanced Disposal Services undervalued compared to its fair value and its price relative to the market?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0AZ (€30.4) is trading below our estimate of fair value (€40.06)

Significantly Below Fair Value: 0AZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0AZ is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: 0AZ is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 0AZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 0AZ is good value based on its PB Ratio (3.2x) compared to the DE Commercial Services industry average (3.3x).


Next Steps

Future Growth

How is Advanced Disposal Services forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

117.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0AZ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 0AZ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 0AZ's is expected to become profitable in the next 3 years.

Revenue vs Market: 0AZ's revenue (4.3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 0AZ's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0AZ's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Advanced Disposal Services performed over the past 5 years?

45.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0AZ is currently unprofitable.

Growing Profit Margin: 0AZ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 0AZ is unprofitable, but has reduced losses over the past 5 years at a rate of 45.8% per year.

Accelerating Growth: Unable to compare 0AZ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 0AZ is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (9.4%).


Return on Equity

High ROE: 0AZ has a negative Return on Equity (-0.097%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Advanced Disposal Services's financial position?


Financial Position Analysis

Short Term Liabilities: 0AZ's short term assets ($258.3M) do not cover its short term liabilities ($420.9M).

Long Term Liabilities: 0AZ's short term assets ($258.3M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: 0AZ's debt to equity ratio (197.2%) is considered high.

Reducing Debt: 0AZ's debt to equity ratio has reduced from 457.4% to 197.2% over the past 5 years.


Balance Sheet

Inventory Level: 0AZ has a high level of physical assets or inventory.

Debt Coverage by Assets: 0AZ's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 0AZ has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 0AZ is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 24.7% per year.


Next Steps

Dividend

What is Advanced Disposal Services's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 0AZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 0AZ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 0AZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 0AZ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 0AZ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Richard Burke (54yo)

5.6yrs

Tenure

US$3,551,039

Compensation

Mr. Richard Burke has been the Chief Executive Officer of Advanced Disposal Services, Inc. since July 1, 2014 and serves as its Chairman. Mr. Burke served as the President of Advanced Disposal Services, In ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD3.55M) is above average for companies of similar size in the German market ($USD2.02M).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Burke
Chairman & CEO5.6yrsUS$3.55m0.21% $5.6m
Steven Carn
Executive VP13.5yrsUS$2.59m0.066% $1.8m
John Spegal
Executive VP & COO5.8yrsUS$1.58m0.063% $1.7m
Melissa Westerman
VP, Chief Accounting Officer & Assistant Treasurer1.7yrsUS$320.20kno data
Michael Slattery
Executive VP5.6yrsUS$1.16m0.052% $1.4m
Matthew Nelson
Vice President of Finance & Investor Relations0yrsno datano data
Mark Nighbor
Vice President of Marketing & Communications0yrsno datano data
Jeffrey Everett
VP, Associate General Counsel & Assistant Secretary0yrsno datano data

5.6yrs

Average Tenure

54yo

Average Age

Experienced Management: 0AZ's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Burke
Chairman & CEO5.6yrsUS$3.55m0.21% $5.6m
B. Preslar
Independent Director3.3yrsUS$165.00k0.018% $487.4k
Michael Hoffman
Independent Director2.3yrsUS$160.00k0.014% $386.4k
Ernest Mrozek
Independent Director2yrsUS$130.21k0.014% $388.3k
Michael Koen
Lead Independent Director0yrsno datano data
E. Conley
Independent Director2.5yrsUS$150.00k0.014% $376.3k
Tanuja Dehne
Independent Director2.5yrsUS$160.00k0.015% $406.8k

2.5yrs

Average Tenure

61yo

Average Age

Experienced Board: 0AZ's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Advanced Disposal Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Advanced Disposal Services, Inc.
  • Ticker: 0AZ
  • Exchange: DB
  • Founded: 2000
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$2.950b
  • Listing Market Cap: US$2.721b
  • Shares outstanding: 89.40m
  • Website: https://www.advanceddisposal.com

Number of Employees


Location

  • Advanced Disposal Services, Inc.
  • 90 Fort Wade Road
  • Suite 200
  • Ponte Vedra
  • Florida
  • 32081
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADSWNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2016
0AZDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2016

Biography

Advanced Disposal Services, Inc. provides non-hazardous solid waste collection, transfer, recycling, and disposal services. The company is involved in the curbside collection of residential refuse from small carts or containers into collection vehicles for transport to a disposal/recycling site. It also supplies commercial and industrial customers with waste containers; rents or sells compactors to large waste generators; and provides roll-off containers, as well as waste collection, transportation, and disposal services to construction and demolition sites. In addition, the company offers landfill disposal services; and manages or operates recycling facilities that collect, process, and sell old corrugated cardboard, old newspaper, mixed paper, aluminum, glass, and other materials, as well as provides customer services. Further, it engages in trucking activities; and landfill gas-to-energy operations at municipal solid waste landfills, as well as manages third-party owned landfills. The company serves approximately 2.8 million residential customers; 200,000 commercial and industrial customers; and 800 municipalities in the Southeast, Midwest, and Eastern regions of the United States, as well as the Commonwealth of the Bahamas. As of December 31, 2018, it owned or operated 94 collection operations, 73 transfer stations, 41 active solid waste landfills, and 22 recycling facilities in 16 states and the Bahamas. The company was formerly known as ADS Waste Holdings, Inc. and changed its name to Advanced Disposal Services, Inc. in January 2016. Advanced Disposal Services, Inc. was founded in 2000 and is headquartered in Ponte Vedra, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:24
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.