This Overlooked Industry is Printing Cash—And Smart Investors Are Taking Notice

A hidden powerhouse is making big moves—here’s why it’s on every smart investor’s radar.

Most investors don’t think about garbage when picking stocks. But what if I told you that one of the best risk-reward opportunities right now comes from a waste management powerhouse that’s quietly dominating the industry? Enter GFL Environmental (NYSE: GFL), a company that’s just made a game-changing move that could send its stock soaring.

If you’re looking for steady cash flow, market resilience, and a management team that knows how to play the long game, GFL might just be the best stock you’re not watching.

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The Big Play: Selling to Grow

GFL’s latest move isn’t just big—it’s strategic. In January 2025, the company announced the sale of its Environmental Services division to Apollo Global Management and BC Partners for a massive C$8 billion ($5.59 billion). (Reuters)

On the surface, it might seem like GFL is cutting back. In reality, it’s doing the opposite. This isn’t a retreat—it’s a pivot.

By offloading this segment, GFL is doubling down on its most profitable business: solid waste collection and disposal. This part of the industry is a goldmine—high margins, steady demand, and virtually no risk of disruption from technological changes. People will always produce waste, and companies like GFL will always get paid to handle it.

Here’s the real kicker: the sale isn’t just bringing in cash—it’s restructuring the entire company for long-term success.

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Debt Reduction and Buybacks: A One-Two Punch

One of the biggest knocks against GFL has been its high debt. The company has grown aggressively through acquisitions, leaving it with a heavy balance sheet. But this sale changes everything.

After taxes and retained equity, GFL will walk away with about C$6.2 billion. Instead of hoarding cash or chasing more acquisitions, the company is doing two things:

1. Slashing Debt – GFL plans to pay down C$3.75 billion in debt, bringing its net leverage ratio down to 3.0x. That’s a crucial step toward securing an investment-grade credit rating. Lower debt means lower interest expenses, more flexibility, and better financial stability. (Investor Relations)

2. Buying Back Stock – The company is using C$2.25 billion for share repurchases. When a company buys back its own shares, it reduces the number of outstanding shares, which increases earnings per share (EPS) and often drives stock prices higher.

This isn’t just a smart move—it’s a power move. It signals that management believes the stock is undervalued, and they’re backing that belief with billions.

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The Business Case for Waste Management

Waste collection and disposal might not be flashy, but it’s a business with unmatched durability. Regardless of economic conditions, waste services remain essential.

GFL operates in a market that benefits from: