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Best-in-class profitability In addition to this advantage from monetizing the by-product of its core collections business, Waste Management has historically held higher return on invested capital (ROIC) figures than its two most prominent peers. ROIC shows that it is the best in its industry at reinvesting in its business.
Solid Q1 results Enterprise once again turned in solid results when it reported its first-quarter results, as its total gross operating profit rose 7% to $2.5 Its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ), meanwhile, rose 6% to nearly $2.5 It generated distributable cash flow of $1.9
It has averaged a return on invested capital (ROIC) of about 12% over the past decade. Enterprisevalue takes into consideration a stock's net debt, while EBITDA removes non-cash expenses. On that basis, Enterprise is trading at just over a 9x multiple. The company currently plans to spend between $3.25
Generating positive free cash flow (FCF) every year since the turn of the century, the stock has delivered total returns of 3,600% over that time -- or seven times the S&P 500 index's return. Compared to its weighted average cost of capital (WACC) of 7%, the company consistently creates value for investors.
From 2014 to 2019, Paycom's annual revenue grew at a compound annual growth rate (CAGR) of 37% while its adjusted earnings before taxes, depreciation, and amortization ( EBITDA ) rose at a CAGR of 64%. At its peak, its enterprisevalue hit $31.9 Why did the bulls love Paycom? Why did the bears take aim at Paycom?
A consistent performer The key to Enterprise's success over the years has been consistency, which has helped the pipeline company increase its distribution for 26 straight years through various ups and downs in the energy markets. For Q2, the Enterprise saw its total gross-operating margin increase nearly 11% to $2.4
In its third quarter, Enterprise's total gross operating profit increased 5% to $2.45 Its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) also rose 5% to nearly $2.44 Enterprise currently has $6.9 It noted that it has produced about a 12% return on invested capital over the past decade.
The fourth quarter comes in ahead of plan Earlier this year, Carnival CEO Josh Weinstein unveiled a new three-year plan called SEA Change, which stands for Sustainability, EBITDA per available lower berth day (ALBD), and Adjusted return on invested capital (ROIC). Based on the company's forward guidance, Carnival shares trade at 20.6
Paycom's adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) margin rose from 39.3% Based on those estimates and its enterprisevalue of $2.5 in 2020 to 42.2% in 2022, and it expects that figure to expand to a midpoint of 42.5%
Accounting treatment says you should start amortizing those every year. You should wind the value down by a certain amount each year. Buffett says, no, they contribute economic value to the balance sheet. We're talking about real returns. You remove amortization from net income, and that's the top of your equation.
Trades around 55 times free cash flow, 31 times enterprisevalue to forward EBITDA so the value of its debt and equity compared to its forward earnings. What it might be going on here is a bit of investment. When you invest in your capital base and make it bigger, that lowers your return on invested capital.
Ricky Mulvey: Well, one thing that Mauboussin has said on some podcasts is that investors have to earn the right to use yardsticks like a price to earnings multiple and enterprisevalue, to EBITDA multiple earnings before interest, taxes, depreciation, and amortization. Compare the price to its return on invested capital.
compounded annually, which will allow us to use our cash flow generation to pay down debt and rebuild the balance sheet as we work toward investment-grade leverage metrics. Essentially, we've pull forward our most important sustainability goal and expect a step change in both profitability and return on invested capital in just three years.
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