WASTE MANAGEMENT INC (UWS.DE) Stock Fundamental Analysis
FRA:UWS - Deutsche Boerse Ag - US94106L1098 - Common Stock - Currency: EUR
Taking everything into account, UWS scores 5 out of 10 in our fundamental rating. UWS was compared to 43 industry peers in the Commercial Services & Supplies industry. While UWS has a great profitability rating, there are quite some concerns on its financial health. UWS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year UWS was profitable.
UWS had a positive operating cash flow in the past year.
Each year in the past 5 years UWS has been profitable.
UWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UWS has a Return On Assets of 6.01%. This is amongst the best in the industry. UWS outperforms 81.40% of its industry peers.
The Return On Equity of UWS (30.92%) is better than 93.02% of its industry peers.
UWS has a better Return On Invested Capital (8.23%) than 81.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UWS is above the industry average of 6.94%.
| 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
The Profit Margin of UWS (11.67%) is better than 93.02% of its industry peers.
UWS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.16%, UWS belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
In the last couple of years the Operating Margin of UWS has remained more or less at the same level.
UWS has a Gross Margin of 39.40%. This is comparable to the rest of the industry: UWS outperforms 44.19% of its industry peers.
UWS's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UWS is still creating some value.
Compared to 1 year ago, UWS has about the same amount of shares outstanding.
Compared to 5 years ago, UWS has less shares outstanding
Compared to 1 year ago, UWS has a worse debt to assets ratio.
2.2 Solvency
UWS has an Altman-Z score of 2.92. This is not the best score and indicates that UWS is in the grey zone with still only limited risk for bankruptcy at the moment.
UWS's Altman-Z score of 2.92 is amongst the best of the industry. UWS outperforms 86.05% of its industry peers.
UWS has a debt to FCF ratio of 12.98. This is a negative value and a sign of low solvency as UWS would need 12.98 years to pay back of all of its debts.
The Debt to FCF ratio of UWS (12.98) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.65 is on the high side and indicates that UWS has dependencies on debt financing.
UWS's Debt to Equity ratio of 2.65 is on the low side compared to the rest of the industry. UWS is outperformed by 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | 12.98 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.05
WACC7.84%
2.3 Liquidity
A Current Ratio of 0.83 indicates that UWS may have some problems paying its short term obligations.
UWS has a worse Current ratio (0.83) than 69.77% of its industry peers.
A Quick Ratio of 0.79 indicates that UWS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.79, UWS is doing worse than 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
UWS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.84%.
The Earnings Per Share has been growing by 10.29% on average over the past years. This is quite good.
The Revenue has grown by 10.77% in the past year. This is quite good.
UWS 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
UWS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.11% yearly.
Based on estimates for the next years, UWS will show a small growth in Revenue. The Revenue will grow by 7.98% on average per year.
EPS Next Y8.68%
EPS Next 2Y10.45%
EPS Next 3Y10.57%
EPS Next 5Y10.11%
Revenue Next Year16.16%
Revenue Next 2Y10.78%
Revenue Next 3Y8.55%
Revenue Next 5Y7.98%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 33.29, the valuation of UWS can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as UWS.
Compared to an average S&P500 Price/Earnings ratio of 26.29, UWS is valued a bit more expensive.
With a Price/Forward Earnings ratio of 27.00, UWS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as UWS.
The average S&P500 Price/Forward Earnings ratio is at 22.17. UWS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.29 | ||
| Fwd PE | 27 |
4.2 Price Multiples
67.44% of the companies in the same industry are cheaper than UWS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UWS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.17 | ||
| EV/EBITDA | 18.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UWS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of UWS may justify a higher PE ratio.
PEG (NY)3.83
PEG (5Y)3.23
EPS Next 2Y10.45%
EPS Next 3Y10.57%
5. Dividend
5.1 Amount
UWS has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.25, UWS has a dividend in line with its industry peers.
With a Dividend Yield of 1.39, UWS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
On average, the dividend of UWS grows each year by 7.84%, which is quite nice.
Dividend Growth(5Y)7.84%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
UWS pays out 46.32% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of UWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.32%
EPS Next 2Y10.45%
EPS Next 3Y10.57%
FRA:UWS (6/2/2025, 7:00:00 PM)
210.05
-0.8 (-0.38%)
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 Cap84.53B
Analysts78.06
Price Target222.73 (6.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend2.66
Dividend Growth(5Y)7.84%
DP46.32%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.84%
Min EPS beat(2)-7.87%
Max EPS beat(2)0.19%
EPS beat(4)2
Avg EPS beat(4)-2.5%
Min EPS beat(4)-7.87%
Max EPS beat(4)0.88%
EPS beat(8)4
Avg EPS beat(8)0.79%
EPS beat(12)5
Avg EPS beat(12)-0.43%
EPS beat(16)7
Avg EPS beat(16)-0.28%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-4.46%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-2.47%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-3.19%
Revenue beat(12)1
Avg Revenue beat(12)-2.74%
Revenue beat(16)3
Avg Revenue beat(16)-1.92%
PT rev (1m)3.64%
PT rev (3m)-0.73%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.29 | ||
| Fwd PE | 27 | ||
| P/S | 4.18 | ||
| P/FCF | 52.17 | ||
| P/OCF | 18.32 | ||
| P/B | 11.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.23 |
EPS(TTM)6.31
EY3%
EPS(NY)7.78
Fwd EY3.7%
FCF(TTM)4.03
FCFY1.92%
OCF(TTM)11.46
OCFY5.46%
SpS50.24
BVpS18.96
TBVpS-19.49
PEG (NY)3.83
PEG (5Y)3.23
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 | 2.92 |
F-Score4
WACC7.84%
ROIC/WACC1.05
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 Y8.68%
EPS Next 2Y10.45%
EPS Next 3Y10.57%
EPS Next 5Y10.11%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y7.16%
Revenue growth 5Y7.38%
Sales Q2Q%16.65%
Revenue Next Year16.16%
Revenue Next 2Y10.78%
Revenue Next 3Y8.55%
Revenue Next 5Y7.98%
EBIT growth 1Y3.76%
EBIT growth 3Y11.95%
EBIT growth 5Y8.54%
EBIT Next Year74.5%
EBIT Next 3Y25.82%
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%