WASTE MANAGEMENT INC (WM) Fundamental Analysis & Valuation

NYSE:WM • US94106L1098

Current stock price

238.53 USD
-0.08 (-0.03%)
At close:
236.24 USD
-2.29 (-0.96%)
Pre-Market:

This WM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. WM Profitability Analysis

1.1 Basic Checks

  • In the past year WM was profitable.
  • WM had a positive operating cash flow in the past year.
  • WM had positive earnings in each of the past 5 years.
  • WM had a positive operating cash flow in each of the past 5 years.
WM Yearly Net Income VS EBIT VS OCF VS FCFWM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • WM has a better Return On Assets (5.91%) than 74.39% of its industry peers.
  • Looking at the Return On Equity, with a value of 27.11%, WM belongs to the top of the industry, outperforming 91.46% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 9.05%, WM is doing good in the industry, outperforming 74.39% of the companies in the same industry.
  • 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 RankSector 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%
WM Yearly ROA, ROE, ROICWM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • WM's Profit Margin of 10.74% is amongst the best of the industry. WM outperforms 85.37% of its industry peers.
  • WM's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 18.28%, WM belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
  • In the last couple of years the Operating Margin of WM has grown nicely.
  • With a decent Gross Margin value of 40.44%, WM is doing good in the industry, outperforming 68.29% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WM has remained more or less at the same level.
Industry RankSector 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%
WM Yearly Profit, Operating, Gross MarginsWM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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3

2. WM Health Analysis

2.1 Basic Checks

  • WM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for WM has been increased compared to 1 year ago.
  • WM has less shares outstanding than it did 5 years ago.
  • WM has a better debt/assets ratio than last year.
WM Yearly Shares OutstandingWM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
WM Yearly Total Debt VS Total AssetsWM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • WM has an Altman-Z score of 3.00. This indicates that WM is financially healthy and has little risk of bankruptcy at the moment.
  • WM's Altman-Z score of 3.00 is fine compared to the rest of the industry. WM outperforms 65.85% of its industry peers.
  • WM has a debt to FCF ratio of 8.13. This is a slightly negative value and a sign of low solvency as WM would need 8.13 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 8.13, WM is doing good in the industry, outperforming 62.20% of the companies in the same industry.
  • 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 80.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 8.13
Altman-Z 3
ROIC/WACC1.15
WACC7.88%
WM Yearly LT Debt VS Equity VS FCFWM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • A Current Ratio of 0.89 indicates that WM may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.89, WM is doing worse than 75.61% of the companies in the same industry.
  • 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.
  • WM has a Quick ratio of 0.85. This is in the lower half of the industry: WM underperforms 73.17% of its industry peers.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.85
WM Yearly Current Assets VS Current LiabilitesWM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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5

3. WM Growth Analysis

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.
  • WM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.24%.
  • 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

  • Based on estimates for the next years, WM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.99% on average per year.
  • Based on estimates for the next years, WM will show a small growth in Revenue. The Revenue will grow by 5.19% on average per year.
EPS Next Y12.6%
EPS Next 2Y13.36%
EPS Next 3Y12.2%
EPS Next 5Y10.99%
Revenue Next Year4.73%
Revenue Next 2Y5.07%
Revenue Next 3Y4.98%
Revenue Next 5Y5.19%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WM Yearly Revenue VS EstimatesWM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
WM Yearly EPS VS EstimatesWM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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3

4. WM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 31.80, which means the current valuation is very expensive for WM.
  • 63.41% of the companies in the same industry are more expensive than WM, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of WM to the average of the S&P500 Index (25.71), we can say WM is valued slightly more expensively.
  • With a Price/Forward Earnings ratio of 28.24, WM can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, WM is valued a bit cheaper than the industry average as 62.20% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, WM is valued at the same level.
Industry RankSector Rank
PE 31.8
Fwd PE 28.24
WM Price Earnings VS Forward Price EarningsWM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WM is on the same level as its industry peers.
  • WM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 34.17
EV/EBITDA 15.92
WM Per share dataWM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of WM may justify a higher PE ratio.
  • A more expensive valuation may be justified as WM's earnings are expected to grow with 12.20% in the coming years.
PEG (NY)2.52
PEG (5Y)2.4
EPS Next 2Y13.36%
EPS Next 3Y12.2%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. WM Dividend Analysis

5.1 Amount

  • WM has a Yearly Dividend Yield of 1.44%.
  • Compared to an average industry Dividend Yield of 0.79, WM pays a better dividend. On top of this WM pays more dividend than 85.37% of the companies listed in the same industry.
  • WM's Dividend Yield is slightly below the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.44%

5.2 History

  • The dividend of WM is nicely growing with an annual growth rate of 8.67%!
  • 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
WM Yearly Dividends per shareWM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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.
  • WM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.26%
EPS Next 2Y13.36%
EPS Next 3Y12.2%
WM Yearly Income VS Free CF VS DividendWM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
WM Dividend Payout.WM Dividend Payout, showing the Payout Ratio.WM Dividend Payout.PayoutRetained Earnings

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WM Fundamentals: All Metrics, Ratios and Statistics

WASTE MANAGEMENT INC

NYSE:WM (3/13/2026, 8:04:00 PM)

Premarket: 236.24 -2.29 (-0.96%)

238.53

-0.08 (-0.03%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)01-28
Earnings (Next)04-27
Inst Owners83.92%
Inst Owner Change0.24%
Ins Owners0.19%
Ins Owner Change0.55%
Market Cap96.21B
Revenue(TTM)25.20B
Net Income(TTM)2.71B
Analysts81.05
Price Target256.04 (7.34%)
Short Float %1.25%
Short Ratio2.11
Dividend
Industry RankSector Rank
Dividend Yield 1.44%
Yearly Dividend3.32
Dividend Growth(5Y)8.67%
DP49.26%
Div Incr Years21
Div Non Decr Years25
Ex-Date03-13
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)0.42%
PT rev (3m)2.7%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-1.94%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.74%
Valuation
Industry RankSector Rank
PE 31.8
Fwd PE 28.24
P/S 3.82
P/FCF 34.17
P/OCF 15.92
P/B 9.63
P/tB N/A
EV/EBITDA 15.92
EPS(TTM)7.5
EY3.14%
EPS(NY)8.45
Fwd EY3.54%
FCF(TTM)6.98
FCFY2.93%
OCF(TTM)14.98
OCFY6.28%
SpS62.49
BVpS24.77
TBVpS-18.98
PEG (NY)2.52
PEG (5Y)2.4
Graham Number64.65
Profitability
Industry RankSector 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 RankSector Rank
Debt/Equity 2.22
Debt/FCF 8.13
Debt/EBITDA 2.97
Cap/Depr 112.71%
Cap/Sales 12.8%
Interest Coverage 4.97
Cash Conversion 80.9%
Profit Quality 103.99%
Current Ratio 0.89
Quick Ratio 0.85
Altman-Z 3
F-Score7
WACC7.88%
ROIC/WACC1.15
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 Y12.6%
EPS Next 2Y13.36%
EPS Next 3Y12.2%
EPS Next 5Y10.99%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y8.56%
Revenue growth 5Y10.62%
Sales Q2Q%7.13%
Revenue Next Year4.73%
Revenue Next 2Y5.07%
Revenue Next 3Y4.98%
Revenue Next 5Y5.19%
EBIT growth 1Y11.04%
EBIT growth 3Y10.36%
EBIT growth 5Y12.92%
EBIT Next Year76.23%
EBIT Next 3Y25.99%
EBIT Next 5Y17.2%
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 Fundamental Analysis 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 31.8 and the Price/Book (PB) ratio is 9.63.


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 12.6% in the next year.