WASTE MANAGEMENT INC (WM) Fundamental Analysis & Valuation

NYSE:WM • US94106L1098

Current stock price

227.35 USD
+1.15 (+0.51%)
At close:
226.4 USD
-0.95 (-0.42%)
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.
  • Each year in the past 5 years WM has been profitable.
  • Each year in the past 5 years WM had a positive operating cash flow.
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

  • With a decent Return On Assets value of 5.91%, WM is doing good in the industry, outperforming 78.75% of the companies in the same industry.
  • With an excellent Return On Equity value of 27.11%, WM belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
  • WM has a better Return On Invested Capital (9.05%) than 77.50% 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 9.47%.
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 86.25% of its industry peers.
  • WM's Profit Margin has improved in the last couple of years.
  • The Operating Margin of WM (18.28%) is better than 90.00% of its industry peers.
  • In the last couple of years the Operating Margin of WM has grown nicely.
  • WM has a better Gross Margin (40.44%) than 63.75% of its industry peers.
  • WM's Gross Margin has been stable in the last couple of years.
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

  • 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
  • Compared to 5 years ago, WM has less shares outstanding
  • 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 2.93. This is not the best score and indicates that WM is in the grey zone with still only limited risk for bankruptcy at the moment.
  • WM's Altman-Z score of 2.93 is fine compared to the rest of the industry. WM outperforms 68.75% 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 63.75% 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.
  • The Debt to Equity ratio of WM (2.22) is worse than 78.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 8.13
Altman-Z 2.93
ROIC/WACC1.07
WACC8.47%
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 77.50% 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.
  • The Quick ratio of WM (0.85) is worse than 75.00% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. WM Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.85% 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%.
  • Measured over the past years, WM shows a quite strong growth in Revenue. The Revenue has been growing by 10.62% on average per year.
EPS 1Y (TTM)6.85%
EPS 3Y10.29%
EPS 5Y13.23%
EPS Q2Q%8.38%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y8.56%
Revenue growth 5Y10.62%
Sales Q2Q%3.47%

3.2 Future

  • WM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.28% yearly.
  • Based on estimates for the next years, WM will show a small growth in Revenue. The Revenue will grow by 5.28% on average per year.
EPS Next Y12.75%
EPS Next 2Y13.38%
EPS Next 3Y12.3%
EPS Next 5Y11.28%
Revenue Next Year4.72%
Revenue Next 2Y5.09%
Revenue Next 3Y5.02%
Revenue Next 5Y5.28%

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 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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4

4. WM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 29.76, which means the current valuation is very expensive for WM.
  • WM's Price/Earnings ratio is a bit cheaper when compared to the industry. WM is cheaper than 63.75% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.91. WM is around the same levels.
  • The Price/Forward Earnings ratio is 23.58, which indicates a rather expensive current valuation of WM.
  • 65.00% of the companies in the same industry are more expensive than WM, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 21.99. WM is around the same levels.
Industry RankSector Rank
PE 29.76
Fwd PE 23.58
WM Price Earnings VS Forward Price EarningsWM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF 32.53
EV/EBITDA 15.3
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.
  • WM's earnings are expected to grow with 12.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.33
PEG (5Y)2.25
EPS Next 2Y13.38%
EPS Next 3Y12.3%

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

7

5. WM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.68%, WM has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.87, WM pays a better dividend. On top of this WM pays more dividend than 85.00% of the companies listed in the same industry.
  • WM's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.68%

5.2 History

  • The dividend of WM is nicely growing with an annual growth rate of 8.67%!
  • WM has been paying a dividend for at least 10 years, so it has a reliable track record.
  • WM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.67%
Div Incr Years22
Div Non Decr Years26
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

  • 49.26% 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, but earnings are growing more, so the dividend growth is sustainable.
DP49.26%
EPS Next 2Y13.38%
EPS Next 3Y12.3%
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 (4/28/2026, 8:05:47 PM)

Premarket: 226.4 -0.95 (-0.42%)

227.35

+1.15 (+0.51%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Industry Strength19.88
Industry Growth12.42
Earnings (Last)04-28
Earnings (Next)N/A
Inst Owners84.02%
Inst Owner Change-0.39%
Ins Owners0.18%
Ins Owner Change0.54%
Market Cap91.60B
Revenue(TTM)25.20B
Net Income(TTM)2.71B
Analysts80.51
Price Target257.01 (13.05%)
Short Float %1.54%
Short Ratio2.9
Dividend
Industry RankSector Rank
Dividend Yield 1.68%
Yearly Dividend3.32
Dividend Growth(5Y)8.67%
DP49.26%
Div Incr Years22
Div Non Decr Years26
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)0.39%
PT rev (3m)1.94%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-1.62%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
Industry RankSector Rank
PE 29.76
Fwd PE 23.58
P/S 3.63
P/FCF 32.53
P/OCF 15.16
P/B 9.17
P/tB N/A
EV/EBITDA 15.3
EPS(TTM)7.64
EY3.36%
EPS(NY)9.64
Fwd EY4.24%
FCF(TTM)6.99
FCFY3.07%
OCF(TTM)15
OCFY6.6%
SpS62.55
BVpS24.79
TBVpS-19
PEG (NY)2.33
PEG (5Y)2.25
Graham Number65.2855 (-71.28%)
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 2.93
F-Score7
WACC8.47%
ROIC/WACC1.07
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)6.85%
EPS 3Y10.29%
EPS 5Y13.23%
EPS Q2Q%8.38%
EPS Next Y12.75%
EPS Next 2Y13.38%
EPS Next 3Y12.3%
EPS Next 5Y11.28%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y8.56%
Revenue growth 5Y10.62%
Sales Q2Q%3.47%
Revenue Next Year4.72%
Revenue Next 2Y5.09%
Revenue Next 3Y5.02%
Revenue Next 5Y5.28%
EBIT growth 1Y11.04%
EBIT growth 3Y10.36%
EBIT growth 5Y12.92%
EBIT Next Year76.2%
EBIT Next 3Y25.97%
EBIT Next 5Y17.24%
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 4 / 10 to WASTE MANAGEMENT INC (WM). This can be considered as Fairly Valued.


What is the profitability of WM stock?

WASTE MANAGEMENT INC (WM) has a profitability rating of 8 / 10.


What are the PE and PB ratios of WASTE MANAGEMENT INC (WM) stock?

The Price/Earnings (PE) ratio for WASTE MANAGEMENT INC (WM) is 29.76 and the Price/Book (PB) ratio is 9.17.


Can you provide the dividend sustainability for WM stock?

The dividend rating of WASTE MANAGEMENT INC (WM) is 7 / 10 and the dividend payout ratio is 49.26%.