WASTE MANAGEMENT INC (WM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WM • US94106L1098
231.72 USD
+1.22 (+0.53%)
At close: Feb 10, 2026
231.72 USD
0 (0%)
After Hours: 2/10/2026, 7:00:00 PM
WM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. While WM has a great profitability rating, there are quite some concerns on its financial health. WM is valied quite expensively at the moment, while it does show a decent growth rate. Finally WM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year WM was profitable.
- WM had a positive operating cash flow in the past year.
- In the past 5 years WM has always been profitable.
- WM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.91%, WM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- WM's Return On Equity of 27.11% is amongst the best of the industry. WM outperforms 91.25% of its industry peers.
- The Return On Invested Capital of WM (9.05%) is better than 72.50% of its industry peers.
- WM had an Average Return On Invested Capital over the past 3 years of 9.41%. This is in line with the industry average of 10.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 27.11% | ||
| ROIC | 9.05% |
ROA(3y)6.36%
ROA(5y)6.49%
ROE(3y)31.25%
ROE(5y)30.39%
ROIC(3y)9.41%
ROIC(5y)9.53%
1.3 Margins
- The Profit Margin of WM (10.74%) is better than 86.25% of its industry peers.
- WM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 18.28%, WM belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- WM's Operating Margin has improved in the last couple of years.
- WM has a Gross Margin of 40.44%. This is in the better half of the industry: WM outperforms 65.00% of its industry peers.
- In the last couple of years the Gross Margin of WM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.28% | ||
| PM (TTM) | 10.74% | ||
| GM | 40.44% |
OM growth 3Y1.65%
OM growth 5Y2.08%
PM growth 3Y-1.84%
PM growth 5Y1.79%
GM growth 3Y2.47%
GM growth 5Y0.92%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WM is creating some value.
- Compared to 1 year ago, WM has more shares outstanding
- The number of shares outstanding for WM has been reduced compared to 5 years ago.
- Compared to 1 year ago, WM has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of WM is 8.13, which is on the high side as it means it would take WM, 8.13 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of WM (8.13) is better than 65.00% of its industry peers.
- A Debt/Equity ratio of 2.22 is on the high side and indicates that WM has dependencies on debt financing.
- WM has a worse Debt to Equity ratio (2.22) than 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | N/A |
ROIC/WACC1.14
WACC7.97%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that WM may have some problems paying its short term obligations.
- WM has a Current ratio of 0.89. This is in the lower half of the industry: WM underperforms 78.75% of its industry peers.
- WM has a Quick Ratio of 0.89. This is a bad value and indicates that WM is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.89, WM is not doing good in the industry: 73.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.73% over the past year.
- The Earnings Per Share has been growing by 13.23% on average over the past years. This is quite good.
- Looking at the last year, WM shows a quite strong growth in Revenue. The Revenue has grown by 14.24% in the last year.
- WM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.62% yearly.
EPS 1Y (TTM)3.73%
EPS 3Y10.29%
EPS 5Y13.23%
EPS Q2Q%13.53%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y8.56%
Revenue growth 5Y10.62%
Sales Q2Q%7.13%
3.2 Future
- The Earnings Per Share is expected to grow by 8.84% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.13% on average over the next years.
EPS Next Y12.84%
EPS Next 2Y13.52%
EPS Next 3Y12.46%
EPS Next 5Y8.84%
Revenue Next Year4.94%
Revenue Next 2Y5.21%
Revenue Next 3Y5.05%
Revenue Next 5Y5.13%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 30.90, WM can be considered very expensive at the moment.
- WM's Price/Earnings ratio is in line with the industry average.
- WM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.03.
- With a Price/Forward Earnings ratio of 27.38, WM can be considered very expensive at the moment.
- 62.50% of the companies in the same industry are more expensive than WM, based on the Price/Forward Earnings ratio.
- WM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.97.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.9 | ||
| Fwd PE | 27.38 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WM.
- WM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.15 | ||
| EV/EBITDA | 15.47 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- WM has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as WM's earnings are expected to grow with 12.46% in the coming years.
PEG (NY)2.41
PEG (5Y)2.34
EPS Next 2Y13.52%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.44%, WM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.80, WM pays a better dividend. On top of this WM pays more dividend than 83.75% of the companies listed in the same industry.
- WM's Dividend Yield is comparable with the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
- On average, the dividend of WM grows each year by 8.67%, which is quite nice.
- WM has paid a dividend for at least 10 years, which is a reliable track record.
- WM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.67%
Div Incr Years21
Div Non Decr Years25
5.3 Sustainability
- WM pays out 49.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of WM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP49.26%
EPS Next 2Y13.52%
EPS Next 3Y12.46%
231.72
+1.22 (+0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)01-28 2026-01-28/amc
Earnings (Next)04-27 2026-04-27/amc
Inst Owners83.51%
Inst Owner Change-1.39%
Ins Owners0.18%
Ins Owner Change3.75%
Market Cap93.35B
Revenue(TTM)25.20B
Net Income(TTM)2.71B
Analysts81.62
Price Target254.99 (10.04%)
Short Float %1.16%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend3.32
Dividend Growth(5Y)8.67%
DP49.26%
Div Incr Years21
Div Non Decr Years25
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.13%
Min EPS beat(2)-4.76%
Max EPS beat(2)-3.5%
EPS beat(4)1
Avg EPS beat(4)-2.43%
Min EPS beat(4)-4.76%
Max EPS beat(4)0.19%
EPS beat(8)3
Avg EPS beat(8)-0.88%
EPS beat(12)4
Avg EPS beat(12)-0.39%
EPS beat(16)6
Avg EPS beat(16)-0.32%
Revenue beat(2)0
Avg Revenue beat(2)-3.94%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)-3.82%
Revenue beat(4)0
Avg Revenue beat(4)-3.54%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-1.83%
Revenue beat(8)0
Avg Revenue beat(8)-2.93%
Revenue beat(12)0
Avg Revenue beat(12)-3.11%
Revenue beat(16)2
Avg Revenue beat(16)-2.55%
PT rev (1m)2.12%
PT rev (3m)-0.01%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)-5.04%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-3.05%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.9 | ||
| Fwd PE | 27.38 | ||
| P/S | 3.7 | ||
| P/FCF | 33.15 | ||
| P/OCF | 15.45 | ||
| P/B | 9.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.47 |
EPS(TTM)7.5
EY3.24%
EPS(NY)8.46
Fwd EY3.65%
FCF(TTM)6.99
FCFY3.02%
OCF(TTM)15
OCFY6.47%
SpS62.56
BVpS24.8
TBVpS-19.01
PEG (NY)2.41
PEG (5Y)2.34
Graham Number64.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 27.11% | ||
| ROCE | 11.43% | ||
| ROIC | 9.05% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 16.25% | ||
| OM | 18.28% | ||
| PM (TTM) | 10.74% | ||
| GM | 40.44% | ||
| FCFM | 11.17% |
ROA(3y)6.36%
ROA(5y)6.49%
ROE(3y)31.25%
ROE(5y)30.39%
ROIC(3y)9.41%
ROIC(5y)9.53%
ROICexc(3y)9.51%
ROICexc(5y)9.63%
ROICexgc(3y)16.39%
ROICexgc(5y)16.26%
ROCE(3y)11.88%
ROCE(5y)12.03%
ROICexgc growth 3Y-0.49%
ROICexgc growth 5Y4.47%
ROICexc growth 3Y-3.74%
ROICexc growth 5Y2.93%
OM growth 3Y1.65%
OM growth 5Y2.08%
PM growth 3Y-1.84%
PM growth 5Y1.79%
GM growth 3Y2.47%
GM growth 5Y0.92%
F-Score7
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 8.13 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 112.71% | ||
| Cap/Sales | 12.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.9% | ||
| Profit Quality | 103.99% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | N/A |
F-Score7
WACC7.97%
ROIC/WACC1.14
Cap/Depr(3y)131.68%
Cap/Depr(5y)123.44%
Cap/Sales(3y)13.87%
Cap/Sales(5y)13.07%
Profit Quality(3y)87.26%
Profit Quality(5y)96.58%
High Growth Momentum
Growth
EPS 1Y (TTM)3.73%
EPS 3Y10.29%
EPS 5Y13.23%
EPS Q2Q%13.53%
EPS Next Y12.84%
EPS Next 2Y13.52%
EPS Next 3Y12.46%
EPS Next 5Y8.84%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y8.56%
Revenue growth 5Y10.62%
Sales Q2Q%7.13%
Revenue Next Year4.94%
Revenue Next 2Y5.21%
Revenue Next 3Y5.05%
Revenue Next 5Y5.13%
EBIT growth 1Y11.04%
EBIT growth 3Y10.36%
EBIT growth 5Y12.92%
EBIT Next Year74.18%
EBIT Next 3Y26.1%
EBIT Next 5Y17.17%
FCF growth 1Y30.43%
FCF growth 3Y13.05%
FCF growth 5Y9.72%
OCF growth 1Y12.12%
OCF growth 3Y10.03%
OCF growth 5Y12.17%
WASTE MANAGEMENT INC / WM FAQ
What is the fundamental rating for WM stock?
ChartMill assigns a fundamental rating of 5 / 10 to WM.
What is the valuation status for WM stock?
ChartMill assigns a valuation rating of 3 / 10 to WASTE MANAGEMENT INC (WM). This can be considered as Overvalued.
Can you provide the profitability details for WASTE MANAGEMENT INC?
WASTE MANAGEMENT INC (WM) has a profitability rating of 8 / 10.
What is the valuation of WASTE MANAGEMENT INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WASTE MANAGEMENT INC (WM) is 30.9 and the Price/Book (PB) ratio is 9.34.
Can you provide the expected EPS growth for WM stock?
The Earnings per Share (EPS) of WASTE MANAGEMENT INC (WM) is expected to grow by 12.84% in the next year.