Waste Management

Moat components and durability: 1) Efficient scale and permits: very strong. WM owns or operates about 262 landfills, the largest network in the U.S. and Canada. Landfill siting and permitting are protracted, capital intensive and face community resistance, which limits new entry.

In most local markets, waste flows to a small number of disposal sites, creating natural monopolies or duopolies. Score 95, highest weight. 2) Cost advantage via route density and vertical integration: strong.

Dense routes lower cost per stop, and internalizing collection into company landfills and transfer stations reduces third‑party tipping fees and adds pricing control. WM’s scale in trucks, bins, fuel and technology also provides procurement leverage. Score 85. 3) Switching costs: moderate to strong.

Commercial contracts often include service terms, fees and equipment on site; municipal franchises are typically multi‑year with renewal dynamics that favor incumbents with reliability and compliance records. Score 80. 4) Intangibles and regulatory know‑how: strong.

Environmental compliance systems, landfill gas expertise and municipal relationships are hard to replicate. Score 85. 5) Network effects: limited relevance. Waste services do not meaningfully benefit from user‑driven network effects.

Score 25. Weighted result supports a high‑quality moat anchored in efficient scale and density advantages that should be durable for decades if regulatory compliance and asset reinvestment remain disciplined.