WASTE MANAGEMENT INC (1WM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1WM - US94106L1098 - Common Stock
186.78 EUR
+3.8 (+2.08%)
We assign a fundamental rating of 4 out of 10 to 1WM. 1WM was compared to 44 industry peers in the Commercial Services & Supplies industry. While 1WM belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1WM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1WM had positive earnings in the past year.
- 1WM had a positive operating cash flow in the past year.
- Each year in the past 5 years 1WM has been profitable.
- In the past 5 years 1WM always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 5.62%, 1WM belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
- 1WM's Return On Equity of 26.94% is amongst the best of the industry. 1WM outperforms 92.86% of its industry peers.
- 1WM has a Return On Invested Capital of 8.48%. This is in the better half of the industry: 1WM outperforms 73.81% of its industry peers.
- 1WM had an Average Return On Invested Capital over the past 3 years of 9.52%. This is in line with the industry average of 8.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.62% | ||
| ROE | 26.94% | ||
| ROIC | 8.48% |
ROA(3y)6.77%
ROA(5y)6.33%
ROE(3y)33.11%
ROE(5y)28.98%
ROIC(3y)9.52%
ROIC(5y)9.04%
1.3 Margins
- Looking at the Profit Margin, with a value of 10.35%, 1WM belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
- 1WM's Profit Margin has improved in the last couple of years.
- 1WM's Operating Margin of 17.64% is amongst the best of the industry. 1WM outperforms 92.86% of its industry peers.
- 1WM's Operating Margin has been stable in the last couple of years.
- 1WM has a Gross Margin of 39.99%. This is comparable to the rest of the industry: 1WM outperforms 45.24% of its industry peers.
- In the last couple of years the Gross Margin of 1WM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.64% | ||
| PM (TTM) | 10.35% | ||
| GM | 39.99% |
OM growth 3Y4.47%
OM growth 5Y1.08%
PM growth 3Y7.11%
PM growth 5Y2.87%
GM growth 3Y1.13%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1WM is creating some value.
- 1WM has about the same amout of shares outstanding than it did 1 year ago.
- 1WM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1WM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.83 indicates that 1WM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1WM's Altman-Z score of 2.83 is fine compared to the rest of the industry. 1WM outperforms 78.57% of its industry peers.
- 1WM has a debt to FCF ratio of 9.73. This is a negative value and a sign of low solvency as 1WM would need 9.73 years to pay back of all of its debts.
- The Debt to FCF ratio of 1WM (9.73) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.36 is on the high side and indicates that 1WM has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.36, 1WM is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 9.73 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.13
WACC7.52%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that 1WM may have some problems paying its short term obligations.
- The Current ratio of 1WM (0.84) is worse than 66.67% of its industry peers.
- 1WM has a Quick Ratio of 0.84. This is a bad value and indicates that 1WM is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1WM has a Quick ratio of 0.80. This is in the lower half of the industry: 1WM underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The earnings per share for 1WM have decreased by 0.00% in the last year.
- The Earnings Per Share has been growing by 10.29% on average over the past years. This is quite good.
- Looking at the last year, 1WM shows a quite strong growth in Revenue. The Revenue has grown by 15.88% in the last year.
- Measured over the past years, 1WM shows a small growth in Revenue. The Revenue has been growing by 7.38% on average per year.
EPS 1Y (TTM)0%
EPS 3Y14.23%
EPS 5Y10.29%
EPS Q2Q%1.02%
Revenue 1Y (TTM)15.88%
Revenue growth 3Y7.16%
Revenue growth 5Y7.38%
Sales Q2Q%14.87%
3.2 Future
- The Earnings Per Share is expected to grow by 8.90% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y6.72%
EPS Next 2Y9.02%
EPS Next 3Y10.75%
EPS Next 5Y8.9%
Revenue Next Year15.17%
Revenue Next 2Y10.25%
Revenue Next 3Y8.69%
Revenue Next 5Y7.38%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- 1WM is valuated quite expensively with a Price/Earnings ratio of 30.27.
- The rest of the industry has a similar Price/Earnings ratio as 1WM.
- 1WM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 25.62, 1WM can be considered very expensive at the moment.
- 1WM's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of 1WM to the average of the S&P500 Index (24.26), we can say 1WM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1WM is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1WM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.93 | ||
| EV/EBITDA | 15.72 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 1WM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.5
PEG (5Y)2.94
EPS Next 2Y9.02%
EPS Next 3Y10.75%
5. Dividend
5.1 Amount
- 1WM has a Yearly Dividend Yield of 1.65%.
- Compared to an average industry Dividend Yield of 2.67, 1WM has a dividend in line with its industry peers.
- 1WM's Dividend Yield is comparable with the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
- The dividend of 1WM is nicely growing with an annual growth rate of 7.85%!
Dividend Growth(5Y)7.85%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1WM pays out 50.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of 1WM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP50.78%
EPS Next 2Y9.02%
EPS Next 3Y10.75%
BIT:1WM (12/18/2025, 7:00:00 PM)
186.78
+3.8 (+2.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-27 2025-10-27/amc
Earnings (Next)01-27 2026-01-27/amc
Inst Owners83.62%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap75.25B
Revenue(TTM)24.78B
Net Income(TTM)2.56B
Analysts81.05
Price Target216.28 (15.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend2.56
Dividend Growth(5Y)7.85%
DP50.78%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.21%
Min EPS beat(2)-4.76%
Max EPS beat(2)-1.66%
EPS beat(4)1
Avg EPS beat(4)-3.52%
Min EPS beat(4)-7.87%
Max EPS beat(4)0.19%
EPS beat(8)4
Avg EPS beat(8)0.84%
EPS beat(12)4
Avg EPS beat(12)-0.96%
EPS beat(16)6
Avg EPS beat(16)-0.28%
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-2.73%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-2.73%
Revenue beat(12)0
Avg Revenue beat(12)-3.06%
Revenue beat(16)2
Avg Revenue beat(16)-2.4%
PT rev (1m)-0.88%
PT rev (3m)-3.46%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-1.47%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 25.62 | ||
| P/S | 3.58 | ||
| P/FCF | 36.93 | ||
| P/OCF | 15.15 | ||
| P/B | 9.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.72 |
EPS(TTM)6.17
EY3.3%
EPS(NY)7.29
Fwd EY3.9%
FCF(TTM)5.06
FCFY2.71%
OCF(TTM)12.33
OCFY6.6%
SpS52.19
BVpS20.05
TBVpS-17.37
PEG (NY)4.5
PEG (5Y)2.94
Graham Number52.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.62% | ||
| ROE | 26.94% | ||
| ROCE | 10.97% | ||
| ROIC | 8.48% | ||
| ROICexc | 8.52% | ||
| ROICexgc | 15.42% | ||
| OM | 17.64% | ||
| PM (TTM) | 10.35% | ||
| GM | 39.99% | ||
| FCFM | 9.69% |
ROA(3y)6.77%
ROA(5y)6.33%
ROE(3y)33.11%
ROE(5y)28.98%
ROIC(3y)9.52%
ROIC(5y)9.04%
ROICexc(3y)9.65%
ROICexc(5y)9.16%
ROICexgc(3y)16.08%
ROICexgc(5y)15.26%
ROCE(3y)12.3%
ROCE(5y)11.69%
ROICexgc growth 3Y1.2%
ROICexgc growth 5Y0.78%
ROICexc growth 3Y-2.68%
ROICexc growth 5Y-3.51%
OM growth 3Y4.47%
OM growth 5Y1.08%
PM growth 3Y7.11%
PM growth 5Y2.87%
GM growth 3Y1.13%
GM growth 5Y0.4%
F-Score4
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 9.73 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 125.83% | ||
| Cap/Sales | 13.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.28% | ||
| Profit Quality | 93.68% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.83 |
F-Score4
WACC7.52%
ROIC/WACC1.13
Cap/Depr(3y)136.42%
Cap/Depr(5y)120.43%
Cap/Sales(3y)13.98%
Cap/Sales(5y)12.66%
Profit Quality(3y)81.63%
Profit Quality(5y)99.46%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y14.23%
EPS 5Y10.29%
EPS Q2Q%1.02%
EPS Next Y6.72%
EPS Next 2Y9.02%
EPS Next 3Y10.75%
EPS Next 5Y8.9%
Revenue 1Y (TTM)15.88%
Revenue growth 3Y7.16%
Revenue growth 5Y7.38%
Sales Q2Q%14.87%
Revenue Next Year15.17%
Revenue Next 2Y10.25%
Revenue Next 3Y8.69%
Revenue Next 5Y7.38%
EBIT growth 1Y3.11%
EBIT growth 3Y11.95%
EBIT growth 5Y8.54%
EBIT Next Year74.63%
EBIT Next 3Y26.67%
EBIT Next 5Y17.52%
FCF growth 1Y43.75%
FCF growth 3Y-3.92%
FCF growth 5Y0.98%
OCF growth 1Y33.52%
OCF growth 3Y7.51%
OCF growth 5Y6.83%
WASTE MANAGEMENT INC / 1WM.MI FAQ
Can you provide the ChartMill fundamental rating for WASTE MANAGEMENT INC?
ChartMill assigns a fundamental rating of 4 / 10 to 1WM.MI.
Can you provide the valuation status for WASTE MANAGEMENT INC?
ChartMill assigns a valuation rating of 2 / 10 to WASTE MANAGEMENT INC (1WM.MI). This can be considered as Overvalued.
Can you provide the profitability details for WASTE MANAGEMENT INC?
WASTE MANAGEMENT INC (1WM.MI) has a profitability rating of 7 / 10.
What is the financial health of WASTE MANAGEMENT INC (1WM.MI) stock?
The financial health rating of WASTE MANAGEMENT INC (1WM.MI) is 2 / 10.
What is the earnings growth outlook for WASTE MANAGEMENT INC?
The Earnings per Share (EPS) of WASTE MANAGEMENT INC (1WM.MI) is expected to grow by 6.72% in the next year.