GFL Environmental Inc (NYSE:GFL), is the fourth largest diversified environmental services company in North America. We believe the company to be reasonably priced despite being an aggressive bet relative to its peers.
Here are the main points of this report:
We recently wrote a piece on Waste Connections (NYSE:WCN), titled, Waste Connections: A Stable Business For Uncertain Times. In that article, we go more into detail about the waste management industry with a competition analysis that includes GFL and therefore recommend you have a read to get a better understanding. Nonetheless, we will summarize some key points here.
The North American waste management market size is expected to reach $229.3 billion by 2027, from $208.0 billion in 2019, registering a CAGR of 5.3% from 2020 to 2027.
We like the industry because the business of garbage removal is a natural monopoly. Natural monopolies arise typically due to the high start-up costs or powerful economies of scale of conducting a business in a specific industry which can result in significant barriers to entry for potential competitors.
*This is a premium seeking alpha article, so we can’t fully post it here.*