WASTE MANAGEMENT INC (WM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WM • US94106L1098
222.24 USD
-0.89 (-0.4%)
At close: Jan 30, 2026
221.97 USD
-0.27 (-0.12%)
After Hours: 1/30/2026, 8:24:27 PM
Overall WM gets a fundamental rating of 4 out of 10. We evaluated WM against 80 industry peers in the Commercial Services & Supplies industry. While WM belongs to the best of the industry regarding profitability, there are concerns on its financial health. WM is valued expensive and it does not seem to be growing.
1. Profitability
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 4 of the past 5 years.
- Of the past 5 years WM 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of WM (5.62%) is better than 75.00% of its industry peers.
- The Return On Equity of WM (26.94%) is better than 91.25% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.48%, WM is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for WM is in line with the industry average of 10.57%.
| 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
- With an excellent Profit Margin value of 10.35%, WM belongs to the best of the industry, outperforming 86.25% of the companies in the same industry.
- In the last couple of years the Profit Margin of WM has grown nicely.
- With an excellent Operating Margin value of 17.64%, WM belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- WM's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 39.99%, WM is in the better half of the industry, outperforming 65.00% 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 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), WM is creating some value.
- WM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 2.84 indicates that WM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- WM has a Altman-Z score of 2.84. This is comparable to the rest of the industry: WM outperforms 60.00% of its industry peers.
- WM has a debt to FCF ratio of 9.73. This is a negative value and a sign of low solvency as WM would need 9.73 years to pay back of all of its debts.
- The Debt to FCF ratio of WM (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 WM has dependencies on debt financing.
- WM's Debt to Equity ratio of 2.36 is on the low side compared to the rest of the industry. WM is outperformed by 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 9.73 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.1
WACC7.68%
2.3 Liquidity
- WM has a Current Ratio of 0.84. 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 Current ratio value of 0.84, WM is not doing good in the industry: 78.75% of the companies in the same industry are doing better.
- WM has a Quick Ratio of 0.84. 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 0.80. This is in the lower half of the industry: WM underperforms 76.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- WM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.73%.
- The Earnings Per Share has been growing by 13.23% on average over the past years. This is quite good.
EPS 1Y (TTM)3.73%
EPS 3Y10.29%
EPS 5Y13.23%
EPS Q2Q%13.53%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
- Based on estimates for the next years, WM will show a small growth in Revenue. The Revenue will grow by 5.13% on average per year.
EPS Next Y14.61%
EPS Next 2Y14.46%
EPS Next 3Y12.02%
EPS Next 5Y8.84%
Revenue Next Year5.4%
Revenue Next 2Y5.48%
Revenue Next 3Y5.87%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 29.63, the valuation of WM can be described as expensive.
- WM's Price/Earnings is on the same level as the industry average.
- WM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
- A Price/Forward Earnings ratio of 25.85 indicates a quite expensive valuation of WM.
- 63.75% of the companies in the same industry are more expensive than WM, based on the Price/Forward Earnings ratio.
- WM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.63 | ||
| Fwd PE | 25.85 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WM.
- The rest of the industry has a similar Price/Free Cash Flow ratio as WM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.27 | ||
| EV/EBITDA | 15.84 |
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 decent profitability rating of WM may justify a higher PE ratio.
- WM's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)2.24
EPS Next 2Y14.46%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
- WM has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.83, 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 slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
- On average, the dividend of WM grows each year by 7.85%, 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)7.85%
Div Incr Years21
Div Non Decr Years25
5.3 Sustainability
- 50.78% of the earnings are spent on dividend by WM. 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.
DP50.78%
EPS Next 2Y14.46%
EPS Next 3Y12.02%
WASTE MANAGEMENT INC / WM FAQ
What is the fundamental rating for WM stock?
ChartMill assigns a fundamental rating of 4 / 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 7 / 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 29.63 and the Price/Book (PB) ratio is 9.41.
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 14.61% in the next year.