Core Insights - Both Waste Management (WM) and McDonald's (MCD) are recognized for their reliable cash returns, attracting investor interest in 2025 [1][2] - The comparison focuses on which company's dividend presents a better long-term investment opportunity [3] Waste Management (WM) - WM is the largest waste services provider in North America, linking dividend growth to an increasing free cash flow outlook and high-return projects in recycling, renewable natural gas, and medical-waste operations [2] - In Q2 2025, WM's adjusted operating EBITDA is projected at approximately $7.55 billion, with full-year free cash flow guidance raised to between $2.8 billion and $2.9 billion, reflecting a $125 million increase from initial guidance [5] - The company reported a 12.1% year-over-year growth in adjusted operating EBITDA for its legacy waste business, with an EBITDA margin exceeding 31% [6] - WM increased its dividend payout by 10% for 2025 to $3.30 annually, resulting in a dividend yield of 1.5% and a conservative payout ratio of about 47%, allowing room for future increases and reinvestment [8] - CEO Jim Fish highlighted the company's strong performance across various sectors, including core collection, disposal, and healthcare integration [7] McDonald's (MCD) - McDonald's has a larger absolute dividend supported by a highly profitable business model, with global comparable sales rising 3.8% and earnings per share increasing by 12% in Q2 2025 [10][11] - The company raised its quarterly dividend by 6% to $1.77, resulting in a dividend yield of 2.3%, but has a higher payout ratio of about 60%, indicating less flexibility for future increases [11] - McDonald's leverages its franchised model and strong operating margins to convert a significant portion of revenue into earnings, supporting dividends and share repurchases [12] - The company has seen loyalty sales reach approximately $33 billion over the past 12 months, indicating strong demand drivers [12] - Management is focused on value offerings to maintain traffic among price-sensitive consumers, which remains a variable to monitor [13] Comparative Analysis - While McDonald's offers a higher immediate yield, WM's combination of rising free cash flow, conservative payout coverage, and investments in sustainability positions it for stronger long-term dividend growth [15] - Both companies trade at premium valuations, making their growth trajectories critical for investors [14]

And welcome back to halftime. It's time for the call of the day. We're going to start off with Pneumont upgraded to outperform at RBC.SH's up just about 3%. Joe, you own this one in the Jot ETF. There's an obvious correlation to rising gold prices.I think most of us understand that. A lot of calls on the street for gold to see 4,000 very quickly. But for this company, they really have begun to manage the business a lot better.Shedding non-core assets, focusing on free cash flow. stock is up 51% year to date ...

This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Portillo’s is slowing its rate of store development and cutting aspects of its operations — including its Chicago breakfast pilot — to focus on its existing markets, according to a statement issued Wednesday. The brand slashed its unit growth target from 12 to eight new units, a 33% decrease, and lowered its same-store sales projections from 1% to ...

Core Viewpoint - Microsoft Corp (MSFT) stock has declined from its recent highs, creating a potential opportunity for value investors, with analysts projecting significantly higher target prices for the stock [1][4]. Group 1: Stock Performance - As of September 9, MSFT stock is trading at $499.28, down from a peak of $535.65 on August 4 [1]. - The current market cap of MSFT is approximately $3,711 billion [3]. Group 2: Financial Projections - Analysts forecast revenue of $322.15 billion for the fiscal year ending June 30, 2026, with an operating cash flow (OCF) margin of 53%, resulting in an OCF of $170.74 billion [3]. - After accounting for $71 billion in capital expenditures, the estimated free cash flow (FCF) is about $99.74 billion [3]. - With a projected 2% FCF yield, the market value of MSFT could approach $5 trillion, indicating a potential target price of $671.03 per share, which is 34.4% higher than the current price [3]. Group 3: Analysts' Target Prices - Various analysts have set target prices for MSFT, with an average of $613.89 from 56 analysts, $622.85 from Barchart, $565.35 from AnaChart, and $617.38 from Stock Analysis, all suggesting that MSFT is currently undervalued [4]. Group 4: Investment Strategy - A suggested strategy for investors is to short out-of-the-money (OTM) put options to establish a lower buy-in point while earning premiums [5][6]. - For instance, the $480.00 put option contract expiring on October 10 has a midpoint premium of $4.28 per contract, which is 4% below the current stock price [7].

Company Overview - Chewy has expanded its offerings from basic pet supplies to include veterinary and pet pharmaceutical care, with clinics located in South Florida, Atlanta, Denver, and Texas [1] - The company provides a wide range of products and services for various pets, including livestock, through its organized online retail site [2] - Chewy was founded in 2011, went public in 2019, and currently has a market cap of approximately $17.6 billion [3] Financial Performance - In fiscal 1Q25, Chewy reported revenue of $3.12 billion, an increase of 8.3% year-over-year, exceeding forecasts by over $40 million [7] - The non-GAAP EPS for the same quarter was 35 cents, up 4 cents from the previous year, and also beat expectations by one penny [7] - Chewy had approximately 20.5 million active customers at the end of fiscal 2024 [6] Analyst Insights - Morgan Stanley's Nathan Feather anticipates a high likelihood of revenue guidance increase for FY25, citing improving web traffic and potential for pet household formation [8] - The stock is rated as Overweight (Buy) with a price target of $50, indicating an 18% upside potential [8] - Chewy has a Strong Buy consensus rating based on 22 recent analyst reviews, with 17 Buys and 5 Holds, and a current stock price of $42.33 [9] Market Context - The overall market outlook is positive, with major indexes near record highs, and the S&P 500 and NASDAQ showing year-to-date increases of 10% and 12.5%, respectively [5] - The potential for Federal Reserve rate cuts is seen as a catalyst for market resilience, which could benefit equities [4]

Core Insights - ConocoPhillips (COP) is a U.S.-based upstream energy firm with a diversified portfolio of low-cost assets across 14 countries, making it vulnerable to commodity price fluctuations [1][3] - The company's strong balance sheet, characterized by a debt-to-capitalization ratio of 26.4%, allows it to withstand unfavorable pricing environments [2][7] - ConocoPhillips aims to generate an additional $7 billion in free cash flow by 2029 through portfolio optimization and cost reduction efforts [2][7] Financial Performance - ConocoPhillips has $5.7 billion in cash and short-term investments, indicating a strong liquidity position [2] - The company's shares have declined by 12.1% over the past year, slightly better than the industry decline of 13.6% [6] - The trailing 12-month enterprise value to EBITDA (EV/EBITDA) ratio for COP is 5.38X, which is below the industry average of 11.06X [9] Earnings Estimates - The Zacks Consensus Estimate for COP's 2025 earnings has been revised upward recently, indicating positive sentiment [11] - Current earnings estimates for the upcoming quarters and years show a slight upward trend, with the current year estimate at $6.64 and next year at $7.46 [12]

Core Viewpoint - Endava's disappointing fourth-quarter 2025 financial results have led to a significant drop in its stock price, despite beating analysts' bottom-line expectations [4][6]. Financial Performance - Endava reported adjusted free cash flow (FCF) of 82.7 million British pounds in fiscal 2021, which increased to 107.2 million British pounds in fiscal 2022 and 111.5 million British pounds in fiscal 2023. However, FCF declined to 58.4 million British pounds in fiscal 2024 and further decreased to 48.7 million British pounds in fiscal 2025 [5]. - The company's revenue for fiscal 2025 was 772.3 million British pounds, but management projects sales to decline to between 750 million British pounds and 765 million British pounds for fiscal 2026 [6]. Market Reaction - Following the release of the financial results, Endava's shares dropped 32.1% from the end of last Friday's trading session through Thursday's market close [2]. - Despite a 14.7% increase in August, the stock has faced a negative start in September due to investor concerns over declining cash flow and the company's guidance for the upcoming fiscal year [1][4]. Management's Outlook - CEO John Cotterell highlighted that the company ended the quarter with its "highest ever quarterly order book," suggesting potential for future growth despite current investor disappointment [7][8].

HPE Rises as Free Cash Flow Rebound Seen Next Year. Get the details on the Bloomberg Stock Movers report. https://t.co/so0WeNcVFT ...

Financial Data and Key Metrics Changes - The company aims to generate consistent profitable growth, with a focus on increasing free cash flow over time, demonstrating durability in cash flow stability despite commodity price fluctuations [3][4][5] - The company has a low reinvestment rate of around 50%, which is competitive within the sector, allowing for flexibility in capital allocation [26][30] Business Line Data and Key Metrics Changes - The company is maintaining a balanced portfolio between oil and gas, with a focus on capital allocation to the Marcellus region despite recent volatility in gas prices [6][10] - The company has a 15-year inventory runway, with 40% of that inventory delivering a 2x PV-10 at $75 oil and $3.75 gas [12] Market Data and Key Metrics Changes - The company is optimistic about natural gas demand, driven by LNG exports and power demand, despite acknowledging potential volatility in the market [7][8] - The company is exploring opportunities in the Franklin Avant asset in the Northern Delaware Basin, which presents geological variability and potential for productivity [39][40] Company Strategy and Development Direction - The company emphasizes flexibility in capital allocation and avoids long-term commitments that could force unwanted investments [14][15] - The integration of technology, including machine learning, is a key focus for enhancing operational efficiency and optimizing capital programs [17][19][22] Management's Comments on Operating Environment and Future Outlook - Management is confident in the company's ability to manage challenges related to water issues in the Delaware Basin and believes the industry will find productive solutions [36][38] - The company is focused on retiring debt before considering stock buybacks, indicating a strategic approach to capital management [31][32] Other Important Information - The company has a strong culture of collaboration and innovation, with a focus on developing young talent and maintaining a high-trust environment [44][50] - Management is confident in the future leadership of the company, emphasizing the capabilities of younger executives [49][51] Q&A Session Summary Question: How does Coterra assess the execution of its balanced strategy? - The company focuses on generating consistent profitable growth and increasing free cash flow as key metrics for assessing strategy execution [3] Question: How does near-term price action affect capital allocation to Marcellus? - The company does not fluctuate capital allocation based on quarterly sentiment and remains constructive on natural gas [6][10] Question: What is the company's view on the Marcellus as a growth engine? - The company views the Marcellus more as a maintenance mode asset rather than a primary growth engine, seeking out-of-basin egress opportunities [11] Question: How does the company plan to enhance its inventory? - The company is leveraging technology and machine learning to optimize operations and enhance inventory management [17][19] Question: What is the company's approach to managing capital expenditures? - The company seeks to optimize capital efficiency while also being willing to invest in growth opportunities [28] Question: How does the company view its debt and stock buyback strategy? - The company plans to retire debt before initiating stock buybacks, indicating a focus on financial stability [31][32] Question: What is the company's perspective on the water issue in the Delaware Basin? - The company acknowledges the water issue as a basin-wide phenomenon but believes it can be managed effectively [36][38] Question: How has the company culture evolved through its transformation? - The company has built a culture of collaboration and innovation, focusing on developing young talent and maintaining transparency [44][50]

Financial Data and Key Metrics Changes - The company aims to generate consistent profitable growth, with a focus on increasing free cash flow over time, demonstrating durability in its operations [3][4] - The company has a low reinvestment rate of around 50%, which is competitive in the sector, allowing for flexibility in capital allocation [27][31] Business Line Data and Key Metrics Changes - The company is maintaining a balanced portfolio between oil and gas, with a deep inventory of low-cost supply [3][4] - The Marcellus region is viewed more as a maintenance mode rather than a growth engine, with a focus on capital efficiency [12][13] Market Data and Key Metrics Changes - The company acknowledges volatility in natural gas prices but remains constructive about the market due to factors like LNG exports and power demand [7][8] - The company is actively managing production and has the flexibility to shut in volumes if netbacks fall significantly [10] Company Strategy and Development Direction - The company emphasizes the importance of technology, including machine learning, to enhance operational efficiency and inventory management [18][20] - The company is focused on maintaining a capital-efficient operation while also seeking investment opportunities to ensure future growth [29][30] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the future, citing a strong internal culture and a young, dynamic workforce that is adaptable and innovative [46][51] - The company is addressing industry challenges, such as water disposal issues, and believes it is well-prepared to handle these emerging problems [36][40] Other Important Information - The company is considering a shift towards stock buybacks after retiring its term loans, indicating confidence in its share value [32][33] - The Franklin Avant asset in the Northern Delaware Basin presents new opportunities due to its geological variability, which requires strong geoscience capabilities [41][42] Q&A Session Summary Question: How does Coterra assess the execution of its balanced strategy? - The company focuses on generating consistent profitable growth and increasing free cash flow as key metrics for assessing strategy execution [3] Question: How does the company view capital allocation in the Marcellus region amidst price volatility? - The company does not fluctuate capital allocation based on quarterly sentiment and remains steady in its approach [6][10] Question: What role does technology play in enhancing the company's inventory? - Technology, particularly machine learning, is seen as crucial for improving operational efficiency and optimizing capital programs [18][20] Question: How does the company plan to manage its debt and potential stock buybacks? - The company intends to retire its term loans first before pivoting to stock buybacks, indicating a strategic approach to capital management [32][33] Question: What is the company's perspective on the water disposal issue in the Delaware Basin? - The company acknowledges the issue as a basin-wide phenomenon but believes it is well-addressed and not material to future inventory [36][39]