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WCA Waste Corporation (WCAA) Has an Inorganic Business Growth Strategy

The Waste Management Services Industry is a favorite with today’s green investors. Rapid but systematic acquisitions constitute the management approach for building future value for this stock. A quarter of a million customers and complete vertical integration are the other strategic strengths of this company, which is less than five years old.

About half of the company’s business is from industrial establishments. Residences account for about a third of revenue. The company services homes through contracts with local self-government bodies. The rest of the business (about 20%) is from commercial establishments. The company has designed a productive system of logistics. Waste is collected in containers that are designed for mechanical handling, hence each pick-up vehicle can be operated by just one employee.

The stock is a worthwhile investment within the Waste Management Services Industry. It is poised to grow as the company extends operations to new parts of the United States and perhaps to other countries as well. No municipality, commercial facility, or manufacturing unit can do without this part of the Services Sector.

Annual sales growth during the Most Recent Quarter has been 32.92 against just 7.19 for the industry. The company has retained this lead on a Trailing Twelve Months basis and over the last five years as well. Capital Spending over the last five years has been 26.41 at a time when new investment in the industry has declined. However, the Most Recent Quarter has ended with the Total Debt to Equity at 1.19 against 1.22 for the industry. The stock seems set to dominate the industry.

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