The U.S. and Canada-listed ‘dirty’ stocks we’ve dug up have generated appealing returns in businesses many people consider unpleasant
SmallCapPower | July 29, 2019: Attractive returns can sometimes be found in ‘dirty’ industries – and by dirty we mean cleaning up messes, disposing of human and food waste, etc. That being said, today we have discovered four ‘dirty’ stocks that have likely put a smile on the faces of their shareholders.
*Share prices as at close July 25, 2019, data obtained from S&P Capital IQ
Badger Daylighting Ltd. (TSX:BAD) – $48.53
Construction and Engineering
Badger Daylighting provides North America with non-destructive excavating services. Typically, Badger works for contractors and facility owners in a diverse range of infrastructure industries. The Company utilizes its Badger Hydrovac technology for safe digging in congested grounds and challenging conditions. The Badger Hydrovac uses a pressurized water steam to liquefy the soil cover. The liquefied soil is then removed by a powerful vacuum system and deposited into a storage tank. The Company manufactures its truck-mounted hydrovac units. On July 15, 2019, Badger announced that its directors had declared a cash dividend of $0.0475 per share for the month of July 2019, which equates to a current annual yield of 1.2%. On May 13, 2019, the Company announced Q1/19 financial results, highlighted by adj. EBITDA of $33.3M, which is up 36% from Q1/18. As well, the Company reported Q1/19 revenue of $146.6M, which is up 22% from Q1/18. See Badger’s corporate website for more information.
- Market Cap: $1.7 Billion
- YTD Return: 51.4%
- Average 90 Day Trading Volume (1,000): 136
Waste Connections, Inc. (TSX:WCN) – $123.47
Environmental and Facilities Services
Waste Connections is an integrated solid waste services company. It offers non-hazardous waste collection, transfer, disposal and recycling services for exclusive and secondary markets in Canada and the U.S. The Company’s subsidiary, R360 Environmental Solutions, provides non-hazardous oilfield waste treatment, recovery and disposal services in areas in the U.S that include Permian, Bakken and Eagle Ford Basins. Currently, Waste Connections serves over 7M residential, commercial, industrial and exploration and production customers in 42 U.S states and six provinces in Canada. Additionally, the Company provides intermodal services for the transportation of cargo and solid waste containers in the Pacific Northwest. See Waste Connections corporate website for more information.
- Market Cap: $32.9 Billion
- YTD Return: 51.4%
- Average 90 Day Trading Volume (1,000): 136
GDI Integrated Facility Services Inc. (TSX:GDI) – $28.92
Diversified Support Services
Headquartered in Montreal, Quebec, GDI is a leading commercial facility services provider that offers a range of services in Canada and the U.S. The Company customer base includes owners and managers of variety of facilities, which include office buildings, hotels, shopping centres, industrial facilities, healthcare establishments, distribution facilities, airports and other transportation facilities. The Company’s services include commercial janitorial, installation, maintenance and repair of HVAC-R, mechanical and electrical systems as well as varying complementary services like damage restoration and janitorial products manufacturing and distribution. On May 9, 2019, the Company released its Q1/19 financial results, which showed revenue increasing by 21.4% to $305.3M compared to Q1/18. See its corporate website for more information.
- Market Cap: $615.3 Million
- YTD Return: 63.0%
- Average 90 Day Trading Volume (1,000): 7
Axonics Modulation Technologies, Inc. (NasdaqGS:AXNX) – $49.00
Diversified Support Services
Axonics is a medical technology company that focuses on designing, developing and commercializing innovative and minimally invasive sacral neuromodulation (SNM) solutions. SNM treatments are used to help patients with overactive bladder, fecal incontinence, and urinary retention. The Axonixs System is the first rechargeable sacral neuromodulation system that has been approved for sale in Europe, Canada, and Australia. On June 18, 2019, the Company announced that the FDA approved the use of full-body magnetic resonance imaging using 1.5 Tesla MRI scanners for its clinical study patients using the Axonics System. See the Company’s corporate website for more information.
- Market Cap: $1.4 Billion
- YTD Return: 149.8%
- Average 90 Day Trading Volume (1,000): 240
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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