Major brokers not only recommended dumping the stock long ago, most don't even bother to cover it anymore. But Cates already does. Cash flow is earnings plus depreciation and other non-cash charges. It's a better measure to use with Waste Management than earnings because the company owns so many landfills and other assets that it is depreciating. Waste Management's already robust cash flow should increase as the company gets back on its feet.
New management is already in place.
What's especially attractive is Waste Management's near monopoly in landfills in many areas. That lets Waste Management's charge high prices for using them. Plus, the company, in most of its markets, has just one competitor in trash collection. Longleaf isn't alone in seeing value in Waste Management. It wasn't just Waste Management that had a bad year last year.