NYSE:ADSW

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.


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


Market Performance


7 Day Return

0.2%

ADSW

1.7%

US Commercial Services

0.4%

US Market


1 Year Return

22.1%

ADSW

18.4%

US Commercial Services

6.9%

US Market

Return vs Industry: ADSW exceeded the US Commercial Services industry which returned 18.4% over the past year.

Return vs Market: ADSW exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

ADSWIndustryMarket
7 Day0.2%1.7%0.4%
30 Day0.4%3.1%-1.1%
90 Day1.1%2.9%-0.5%
1 Year22.1%22.1%22.9%18.4%9.3%6.9%
3 Year68.5%68.5%73.8%61.9%45.8%36.4%
5 Yearn/a103.9%83.4%62.9%45.1%

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

Valuation

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

10.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ADSW ($32.68) is trading below our estimate of fair value ($36.42)

Significantly Undervalued: ADSW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: ADSW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ADSW is overvalued based on its PB Ratio (3.2x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is Advanced Disposal Services forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

108.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADSW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ADSW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ADSW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ADSW's revenue (4.3% per year) is forecast to grow slower than the US market (7.2% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ADSW's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

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

52.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ADSW is unprofitable, but has reduced losses over the past 5 years at a rate of 52.5% per year.

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

Earnings vs Industry: ADSW is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-2.4%).


Return on Equity

High ROE: ADSW has a negative Return on Equity (-1.03%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ADSW is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ADSW is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Advanced Disposal Services's financial position?


Financial Position Analysis

Short Term Liabilities: ADSW's short term assets ($267.0M) do not cover its short term liabilities ($429.8M)

Long Term Liabilities: ADSW's short term assets (267.0M) do not cover its long term liabilities (2.2B)


Debt to Equity History and Analysis

Debt Level: ADSW's debt to equity ratio (199.8%) is considered high

Reducing Debt: ADSW's debt to equity ratio has reduced from 453% to 199.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ADSW'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 ADSW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ADSW is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 18.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if ADSW'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 ADSW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Advanced Disposal Services's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Richard Burke (54yo)

5.3yrs

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 ($USD3.55M) is below average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

5.3yrs

Average Tenure

54yo

Average Age

Experienced Management: ADSW's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

61yo

Average Age

Experienced Board: ADSW's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$37,69706 Nov 18
Ernest Mrozek
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$25.26

Ownership Breakdown


Management Team

  • Richard Burke (54yo)

    Chairman & CEO

    • Tenure: 5.3yrs
    • Compensation: US$3.55m
  • Mike Slattery (65yo)

    Executive VP

    • Tenure: 5.3yrs
    • Compensation: US$1.16m
  • Steve Carn (54yo)

    Executive VP

    • Tenure: 13.2yrs
    • Compensation: US$2.59m
  • Missy Westerman (44yo)

    VP, Chief Accounting Officer & Assistant Treasurer

    • Tenure: 1.3yrs
    • Compensation: US$320.20k
  • John Spegal (66yo)

    Executive VP & COO

    • Tenure: 5.5yrs
    • Compensation: US$1.58m
  • Jeffrey Everett

    VP, Associate General Counsel & Assistant Secretary

    • Tenure: 0yrs
  • Mark Nighbor

    Vice President of Marketing & Communications

    • Tenure: 0yrs
  • Matt Nelson

    Vice President of Finance & Investor Relations

    • Tenure: 0yrs

Board Members

  • B. Preslar (64yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$165.00k
  • Mike Hoffman (64yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$160.00k
  • Ernest Mrozek (66yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$130.21k
  • Mike Koen (45yo)

    Lead Independent Director

    • Tenure: 0yrs
  • E. Conley (61yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$150.00k
  • Richard Burke (54yo)

    Chairman & CEO

    • Tenure: 5.3yrs
    • Compensation: US$3.55m
  • Tanuja Dehne (47yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$160.00k

Company Information

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


Key Information

  • Name: Advanced Disposal Services, Inc.
  • Ticker: ADSW
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$2.914b
  • Shares outstanding: 89.16m
  • 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 sma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:43
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.