Rating Change #8
Progressive Waste Solutions Ltd (BIN) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally weak debt management, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- PROGRESSIVE WASTE SOLUTIONS has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, PROGRESSIVE WASTE SOLUTIONS swung to a loss, reporting -$1.66 versus $0.76 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Services & Supplies industry. The net income has significantly decreased by 1588.0% when compared to the same quarter one year ago, falling from $19.91 million to -$296.19 million.
- The debt-to-equity ratio of 1.02 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, BIN maintains a poor quick ratio of 0.76, which illustrates the inability to avoid short-term cash problems.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, PROGRESSIVE WASTE SOLUTIONS's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to $115.22 million or 4.51% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, PROGRESSIVE WASTE SOLUTIONS has marginally lower results.
Progressive Waste Solutions Ltd. operates as a vertically integrated waste management company in North America. The company provides non-hazardous solid waste collection and landfill disposal services to commercial, industrial, municipal, and residential customers. The company has a P/E ratio of 19.4, below the average materials & construction industry P/E ratio of 22.1 and above the S&P 500 P/E ratio of 17.7. Progressive Waste has a market cap of $2.6 billion and is part of the industrial goods sector and materials & construction industry. Shares are up 4.5% year to date as of the close of trading on Thursday.You can view the full Progressive Waste Ratings Report or get investment ideas from our investment research center.