WASTE MANAGEMENT INC (WM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WM - US94106L1098 - Common Stock
217.415 USD
+1.19 (+0.55%)
We assign a fundamental rating of 4 out of 10 to WM. WM was compared to 82 industry peers in the Commercial Services & Supplies industry. WM has an excellent profitability rating, but there are concerns on its financial health. WM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WM was profitable.
In the past year WM had a positive cash flow from operations.
In the past 5 years WM has always been profitable.
In the past 5 years WM always reported a positive cash flow from operatings.
1.2 Ratios
WM has a better Return On Assets (5.62%) than 71.95% of its industry peers.
Looking at the Return On Equity, with a value of 26.94%, WM belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
The Return On Invested Capital of WM (8.48%) is better than 71.95% of its industry peers.
WM had an Average Return On Invested Capital over the past 3 years of 9.52%. This is in line with the industry average of 10.48%.
| 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
WM's Profit Margin of 10.35% is amongst the best of the industry. WM outperforms 85.37% 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 17.64%, WM belongs to the top of the industry, outperforming 91.46% 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 68.29% of the companies in the same industry.
WM's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WM is still creating some value.
WM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WM has been reduced compared to 5 years ago.
Compared to 1 year ago, WM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.80 indicates that WM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.80, WM perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
The Debt to FCF ratio of WM is 9.73, which is on the high side as it means it would take WM, 9.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.73, WM is in line with its industry, outperforming 56.10% of the companies in the same industry.
WM has a Debt/Equity ratio of 2.36. This is a high value indicating a heavy dependency on external 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 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 9.73 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.14
WACC7.47%
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.
Looking at the Current ratio, with a value of 0.84, WM is doing worse than 79.27% of the companies in the same industry.
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.
With a Quick ratio value of 0.80, WM is not doing good in the industry: 76.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for WM have decreased by 0.00% in the last year.
The Earnings Per Share has been growing by 10.29% 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 15.88% in the last year.
WM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.38% yearly.
EPS 1Y (TTM)0%
EPS 3Y14.23%
EPS 5Y10.29%
EPS Q2Q%1.02%
Revenue 1Y (TTM)15.88%
Revenue growth 3Y7.16%
Revenue growth 5Y7.38%
Sales Q2Q%14.87%
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 8.90% yearly.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y6.86%
EPS Next 2Y9%
EPS Next 3Y10.64%
EPS Next 5Y8.9%
Revenue Next Year13.63%
Revenue Next 2Y9.4%
Revenue Next 3Y8.69%
Revenue Next 5Y7.38%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.91 indicates a quite expensive valuation of WM.
The rest of the industry has a similar Price/Earnings ratio as WM.
WM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.31 indicates a quite expensive valuation of WM.
WM's Price/Forward Earnings ratio is in line with the industry average.
WM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 25.31 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.47 | ||
| EV/EBITDA | 15.5 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.36
PEG (5Y)2.91
EPS Next 2Y9%
EPS Next 3Y10.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.65%, WM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.61, WM pays a better dividend. On top of this WM pays more dividend than 81.71% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, WM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
The dividend of WM is nicely growing with an annual growth rate of 7.85%!
WM has been paying a dividend for at least 10 years, so it has 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
WM pays out 50.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
WM's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP50.78%
EPS Next 2Y9%
EPS Next 3Y10.64%
NYSE:WM (11/26/2025, 11:19:51 AM)
217.415
+1.19 (+0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners83.79%
Inst Owner Change-1.31%
Ins Owners0.18%
Ins Owner Change1.63%
Market Cap87.59B
Revenue(TTM)24.78B
Net Income(TTM)2.56B
Analysts78.82
Price Target249.25 (14.64%)
Short Float %1.06%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend3.01
Dividend Growth(5Y)7.85%
DP50.78%
Div Incr Years21
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.21%
Min EPS beat(2)-4.76%
Max EPS beat(2)-1.66%
EPS beat(4)1
Avg EPS beat(4)-3.52%
Min EPS beat(4)-7.87%
Max EPS beat(4)0.19%
EPS beat(8)4
Avg EPS beat(8)0.84%
EPS beat(12)4
Avg EPS beat(12)-0.96%
EPS beat(16)6
Avg EPS beat(16)-0.28%
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-2.73%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-2.73%
Revenue beat(12)0
Avg Revenue beat(12)-3.06%
Revenue beat(16)2
Avg Revenue beat(16)-2.4%
PT rev (1m)-4.67%
PT rev (3m)-4.11%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-1.7%
Revenue NY rev (3m)-2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 25.31 | ||
| P/S | 3.53 | ||
| P/FCF | 36.47 | ||
| P/OCF | 14.96 | ||
| P/B | 9.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.5 |
EPS(TTM)7.27
EY3.34%
EPS(NY)8.59
Fwd EY3.95%
FCF(TTM)5.96
FCFY2.74%
OCF(TTM)14.54
OCFY6.69%
SpS61.52
BVpS23.63
TBVpS-20.47
PEG (NY)4.36
PEG (5Y)2.91
Graham Number62.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.62% | ||
| ROE | 26.94% | ||
| ROCE | 10.97% | ||
| ROIC | 8.48% | ||
| ROICexc | 8.52% | ||
| ROICexgc | 15.42% | ||
| OM | 17.64% | ||
| PM (TTM) | 10.35% | ||
| GM | 39.99% | ||
| FCFM | 9.69% |
ROA(3y)6.77%
ROA(5y)6.33%
ROE(3y)33.11%
ROE(5y)28.98%
ROIC(3y)9.52%
ROIC(5y)9.04%
ROICexc(3y)9.65%
ROICexc(5y)9.16%
ROICexgc(3y)16.08%
ROICexgc(5y)15.26%
ROCE(3y)12.3%
ROCE(5y)11.69%
ROICexgc growth 3Y1.2%
ROICexgc growth 5Y0.78%
ROICexc growth 3Y-2.68%
ROICexc growth 5Y-3.51%
OM growth 3Y4.47%
OM growth 5Y1.08%
PM growth 3Y7.11%
PM growth 5Y2.87%
GM growth 3Y1.13%
GM growth 5Y0.4%
F-Score4
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 9.73 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 125.83% | ||
| Cap/Sales | 13.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.28% | ||
| Profit Quality | 93.68% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.8 |
F-Score4
WACC7.47%
ROIC/WACC1.14
Cap/Depr(3y)136.42%
Cap/Depr(5y)120.43%
Cap/Sales(3y)13.98%
Cap/Sales(5y)12.66%
Profit Quality(3y)81.63%
Profit Quality(5y)99.46%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y14.23%
EPS 5Y10.29%
EPS Q2Q%1.02%
EPS Next Y6.86%
EPS Next 2Y9%
EPS Next 3Y10.64%
EPS Next 5Y8.9%
Revenue 1Y (TTM)15.88%
Revenue growth 3Y7.16%
Revenue growth 5Y7.38%
Sales Q2Q%14.87%
Revenue Next Year13.63%
Revenue Next 2Y9.4%
Revenue Next 3Y8.69%
Revenue Next 5Y7.38%
EBIT growth 1Y3.11%
EBIT growth 3Y11.95%
EBIT growth 5Y8.54%
EBIT Next Year74.99%
EBIT Next 3Y27.21%
EBIT Next 5Y17.52%
FCF growth 1Y43.75%
FCF growth 3Y-3.92%
FCF growth 5Y0.98%
OCF growth 1Y33.52%
OCF growth 3Y7.51%
OCF growth 5Y6.83%
WASTE MANAGEMENT INC / WM FAQ
What is the fundamental rating for WM stock?
ChartMill assigns a fundamental rating of 4 / 10 to WM.
Can you provide the valuation status for WASTE MANAGEMENT INC?
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 expected EPS growth for WASTE MANAGEMENT INC (WM) stock?
The Earnings per Share (EPS) of WASTE MANAGEMENT INC (WM) is expected to grow by 6.86% in the next year.
How sustainable is the dividend of WASTE MANAGEMENT INC (WM) stock?
The dividend rating of WASTE MANAGEMENT INC (WM) is 6 / 10 and the dividend payout ratio is 50.78%.