Turning trash into cash

It's interesting that 4corners didn't even mention anything Re the French boys (Veolia, Suez) or some fat cats of the industry (Cleanaway)..

Just to reiterate why Bingo is great Buy currently

- Bingo has the highest recycling recovery rates in the industry and is the most efficient
- They have a very young fleet and their recovery processes and technology offer them great scale/efficiency advantages
- Bingo has the higher ROE, ROA and margins by far in the sector
- Skin in the game: Even though the Tartaks disinvested via the IPO, some family members including the CEO have retained a significant proportion of the float. Further, a large proportion of its employees are holding employer stock.
- Sell side suggests a TP at 2.33 to 2.80. This has not baked in the plan for the Victoria expansion. The recycling units of the Alex Fraser Group and DATS Skip Bins are for sale (in attractive valuations). A takeover and reorganisation of these units to increase recycling efficiency can be accretive to the TP.
- Discount vs. global peers: BIN currently trades at P/E NTM 19x vs. industry 24.4x, EV/EBITA NTM 13.5x vs. 17.7x. This suggests further uplift once international institutions and infrastructure/ environmental funds start buying.
- BIN has the ability to jack up the div. yield once fully expanded in Victoria. Currently, yield would be 3.5% once the maiden dividend kicks in.

Bottom line: Bingo is a great long term Buy especially for rational institutional investors that can separate the trash from the cash. Not recommended for small type casino high rollers that are panic selling every now and then.