WASTE MANAGEMENT INC (WM) Fundamental Analysis & Valuation

NYSE:WM • US94106L1098

Current stock price

230.31 USD
+2.96 (+1.3%)
At close:
230.31 USD
0 (0%)
After Hours:

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.
  • 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

  • WM's Return On Assets of 5.91% is fine compared to the rest of the industry. WM outperforms 78.75% of its industry peers.
  • 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.
  • The Return On Invested Capital of WM (9.05%) is better than 77.50% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for WM 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 has a Profit Margin of 10.74%. This is amongst the best in the industry. WM outperforms 86.25% of its industry peers.
  • In the last couple of years the Profit Margin of WM has grown nicely.
  • 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.
  • With a decent Gross Margin value of 40.44%, WM is doing good in the industry, outperforming 63.75% 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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WM is still 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.
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

  • An Altman-Z score of 2.95 indicates that WM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.95, WM is doing good in the industry, outperforming 70.00% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 8.13, WM is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
  • WM has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
  • WM has a worse Debt to Equity ratio (2.22) than 78.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 8.13
Altman-Z 2.95
ROIC/WACC1.06
WACC8.52%
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.
  • The Current ratio of WM (0.89) is worse than 77.50% of its industry peers.
  • A Quick Ratio of 0.85 indicates that WM may have some problems paying 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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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.
  • 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)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

  • The Earnings Per Share is expected to grow by 11.28% 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 5.28% 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.
  • 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.
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

  • A Price/Earnings ratio of 30.15 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/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.54. WM is around the same levels.
  • WM is valuated rather expensively with a Price/Forward Earnings ratio of 23.89.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WM indicates a somewhat cheap valuation: WM is cheaper than 63.75% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.68, WM is valued at the same level.
Industry RankSector Rank
PE 30.15
Fwd PE 23.89
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 32.95
EV/EBITDA 15.46
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.
  • 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 12.30% in the coming years.
PEG (NY)2.36
PEG (5Y)2.28
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

  • WM has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
  • 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

  • On average, the dividend of WM grows each year by 8.67%, which is quite nice.
  • 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 (4/29/2026, 8:04:00 PM)

After market: 230.31 0 (0%)

230.31

+2.96 (+1.3%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Industry Strength21.74
Industry Growth12.42
Earnings (Last)04-28
Earnings (Next)07-27
Inst Owners84.02%
Inst Owner Change-0.39%
Ins Owners0.18%
Ins Owner Change0.54%
Market Cap92.79B
Revenue(TTM)25.20B
Net Income(TTM)2.71B
Analysts80.51
Price Target257.01 (11.59%)
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 30.15
Fwd PE 23.89
P/S 3.68
P/FCF 32.95
P/OCF 15.36
P/B 9.29
P/tB N/A
EV/EBITDA 15.46
EPS(TTM)7.64
EY3.32%
EPS(NY)9.64
Fwd EY4.19%
FCF(TTM)6.99
FCFY3.03%
OCF(TTM)15
OCFY6.51%
SpS62.55
BVpS24.79
TBVpS-19
PEG (NY)2.36
PEG (5Y)2.28
Graham Number65.2855 (-71.65%)
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 2.95
F-Score7
WACC8.52%
ROIC/WACC1.06
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 30.15 and the Price/Book (PB) ratio is 9.29.


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%.