WASTE MANAGEMENT INC (1WM.MI) Stock Fundamental Analysis
BIT:1WM - Euronext Milan - US94106L1098 - Common Stock - Currency: EUR
Taking everything into account, 1WM scores 4 out of 10 in our fundamental rating. 1WM was compared to 42 industry peers in the Commercial Services & Supplies industry. While 1WM has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, 1WM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1WM was profitable.
1WM had a positive operating cash flow in the past year.
Each year in the past 5 years 1WM has been profitable.
Each year in the past 5 years 1WM had a positive operating cash flow.
1.2 Ratios
1WM's Return On Assets of 6.01% is fine compared to the rest of the industry. 1WM outperforms 79.55% of its industry peers.
1WM's Return On Equity of 30.92% is amongst the best of the industry. 1WM outperforms 90.91% of its industry peers.
1WM has a better Return On Invested Capital (8.23%) than 79.55% of its industry peers.
1WM had an Average Return On Invested Capital over the past 3 years of 9.52%. This is above the industry average of 7.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 30.92% | ||
| ROIC | 8.23% |
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
1WM has a better Profit Margin (11.67%) than 88.64% of its industry peers.
In the last couple of years the Profit Margin of 1WM has grown nicely.
1WM's Operating Margin of 18.16% is amongst the best of the industry. 1WM outperforms 93.18% of its industry peers.
1WM's Operating Margin has been stable in the last couple of years.
1WM has a Gross Margin (39.40%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1WM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.16% | ||
| PM (TTM) | 11.67% | ||
| GM | 39.4% |
OM growth 3Y4.47%
OM growth 5Y1.08%
PM growth 3Y7.11%
PM growth 5Y2.87%
GM growth 3Y1.13%
GM growth 5Y-3.63%
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.
Looking at the Altman-Z score, with a value of 2.83, 1WM is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
The Debt to FCF ratio of 1WM is 12.98, which is on the high side as it means it would take 1WM, 12.98 years of fcf income to pay off all of its debts.
1WM has a Debt to FCF ratio (12.98) which is in line with its industry peers.
A Debt/Equity ratio of 2.65 is on the high side and indicates that 1WM has dependencies on debt financing.
1WM has a Debt to Equity ratio of 2.65. This is in the lower half of the industry: 1WM underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | 12.98 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.03
WACC8%
2.3 Liquidity
A Current Ratio of 0.83 indicates that 1WM may have some problems paying its short term obligations.
1WM has a worse Current ratio (0.83) than 70.45% of its industry peers.
1WM has a Quick Ratio of 0.83. 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's Quick ratio of 0.79 is on the low side compared to the rest of the industry. 1WM is outperformed by 65.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
1WM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.84%.
1WM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.29% yearly.
The Revenue has grown by 10.77% in the past year. This is quite good.
1WM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.38% yearly.
EPS 1Y (TTM)7.84%
EPS 3Y14.23%
EPS 5Y10.29%
EPS Q2Q%-4.57%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y7.16%
Revenue growth 5Y7.38%
Sales Q2Q%16.65%
3.2 Future
Based on estimates for the next years, 1WM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.11% on average per year.
1WM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.98% yearly.
EPS Next Y9.48%
EPS Next 2Y11.37%
EPS Next 3Y10.68%
EPS Next 5Y10.11%
Revenue Next Year16.26%
Revenue Next 2Y10.82%
Revenue Next 3Y8.55%
Revenue Next 5Y7.98%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1WM is valuated quite expensively with a Price/Earnings ratio of 31.56.
Compared to the rest of the industry, the Price/Earnings ratio of 1WM is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.35. 1WM is around the same levels.
Based on the Price/Forward Earnings ratio of 25.15, the valuation of 1WM can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1WM is on the same level as its industry peers.
1WM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.56 | ||
| Fwd PE | 25.15 |
4.2 Price Multiples
61.36% of the companies in the same industry are cheaper than 1WM, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1WM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.4 | ||
| EV/EBITDA | 17.4 |
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)3.33
PEG (5Y)3.07
EPS Next 2Y11.37%
EPS Next 3Y10.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, 1WM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.05, 1WM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 1WM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
The dividend of 1WM is nicely growing with an annual growth rate of 7.84%!
Dividend Growth(5Y)7.84%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1WM pays out 46.32% of its income as dividend. This is a bit on the high side, but may be sustainable.
1WM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP46.32%
EPS Next 2Y11.37%
EPS Next 3Y10.68%
BIT:1WM (4/28/2025, 7:00:00 PM)
200.4
-2.8 (-1.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.94%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap80.64B
Analysts78.06
Price Target222.67 (11.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend2.68
Dividend Growth(5Y)7.84%
DP46.32%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.49%
Min EPS beat(2)-7.87%
Max EPS beat(2)-1.1%
EPS beat(4)1
Avg EPS beat(4)-2.82%
Min EPS beat(4)-7.87%
Max EPS beat(4)0.88%
EPS beat(8)3
Avg EPS beat(8)0.62%
EPS beat(12)4
Avg EPS beat(12)-0.53%
EPS beat(16)6
Avg EPS beat(16)-0.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.66%
Min Revenue beat(2)-4.52%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.52%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-3.2%
Revenue beat(12)1
Avg Revenue beat(12)-2.74%
Revenue beat(16)3
Avg Revenue beat(16)-1.92%
PT rev (1m)-2.84%
PT rev (3m)-2.84%
EPS NQ rev (1m)-5.31%
EPS NQ rev (3m)-5.31%
EPS NY rev (1m)-4.91%
EPS NY rev (3m)-4.91%
Revenue NQ rev (1m)6.28%
Revenue NQ rev (3m)6.28%
Revenue NY rev (1m)3.25%
Revenue NY rev (3m)3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.56 | ||
| Fwd PE | 25.15 | ||
| P/S | 3.96 | ||
| P/FCF | 49.4 | ||
| P/OCF | 17.35 | ||
| P/B | 10.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.4 |
EPS(TTM)6.35
EY3.17%
EPS(NY)7.97
Fwd EY3.98%
FCF(TTM)4.06
FCFY2.02%
OCF(TTM)11.55
OCFY5.76%
SpS50.62
BVpS19.1
TBVpS-19.64
PEG (NY)3.33
PEG (5Y)3.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 30.92% | ||
| ROCE | 10.64% | ||
| ROIC | 8.23% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 15.06% | ||
| OM | 18.16% | ||
| PM (TTM) | 11.67% | ||
| GM | 39.4% | ||
| FCFM | 8.01% |
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%
ROICexcg growth 3Y1.2%
ROICexcg 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 5Y-3.63%
F-Score4
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | 12.98 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 140.89% | ||
| Cap/Sales | 14.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.6% | ||
| Profit Quality | 68.67% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.83 |
F-Score4
WACC8%
ROIC/WACC1.03
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)7.84%
EPS 3Y14.23%
EPS 5Y10.29%
EPS Q2Q%-4.57%
EPS Next Y9.48%
EPS Next 2Y11.37%
EPS Next 3Y10.68%
EPS Next 5Y10.11%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y7.16%
Revenue growth 5Y7.38%
Sales Q2Q%16.65%
Revenue Next Year16.26%
Revenue Next 2Y10.82%
Revenue Next 3Y8.55%
Revenue Next 5Y7.98%
EBIT growth 1Y3.76%
EBIT growth 3Y11.95%
EBIT growth 5Y8.54%
EBIT Next Year74.25%
EBIT Next 3Y26.18%
EBIT Next 5Y17.46%
FCF growth 1Y23.04%
FCF growth 3Y-3.92%
FCF growth 5Y0.98%
OCF growth 1Y21.03%
OCF growth 3Y7.51%
OCF growth 5Y6.83%