WASTE MANAGEMENT INC (UWS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:UWS - US94106L1098 - Common Stock
192.52 EUR
-2.32 (-1.19%)
Overall UWS gets a fundamental rating of 4 out of 10. We evaluated UWS against 44 industry peers in the Commercial Services & Supplies industry. While UWS belongs to the best of the industry regarding profitability, there are concerns on its financial health. UWS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year UWS was profitable.
- UWS had a positive operating cash flow in the past year.
- UWS had positive earnings in each of the past 5 years.
- UWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- UWS's Return On Assets of 5.62% is fine compared to the rest of the industry. UWS outperforms 77.27% of its industry peers.
- The Return On Equity of UWS (26.94%) is better than 93.18% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.48%, UWS is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for UWS is in line with the industry average of 8.58%.
| 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%, UWS belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- In the last couple of years the Profit Margin of UWS has grown nicely.
- Looking at the Operating Margin, with a value of 17.64%, UWS belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
- In the last couple of years the Operating Margin of UWS has remained more or less at the same level.
- With a Gross Margin value of 39.99%, UWS perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- UWS'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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UWS is creating some value.
- Compared to 1 year ago, UWS has about the same amount of shares outstanding.
- UWS has less shares outstanding than it did 5 years ago.
- UWS has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.88 indicates that UWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- UWS has a Altman-Z score of 2.88. This is in the better half of the industry: UWS outperforms 79.55% of its industry peers.
- The Debt to FCF ratio of UWS is 9.73, which is on the high side as it means it would take UWS, 9.73 years of fcf income to pay off all of its debts.
- UWS has a Debt to FCF ratio (9.73) which is in line with its industry peers.
- UWS has a Debt/Equity ratio of 2.36. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.36, UWS is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 9.73 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.12
WACC7.6%
2.3 Liquidity
- UWS has a Current Ratio of 0.84. This is a bad value and indicates that UWS is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of UWS (0.84) is worse than 68.18% of its industry peers.
- A Quick Ratio of 0.80 indicates that UWS may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.80, UWS is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- UWS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
- The Earnings Per Share has been growing by 10.29% on average over the past years. This is quite good.
- The Revenue has grown by 15.88% in the past year. This is quite good.
- The Revenue has been growing slightly by 7.38% on average over the past years.
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
- Based on estimates for the next years, UWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.90% on average per year.
- The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y6.74%
EPS Next 2Y9.04%
EPS Next 3Y10.76%
EPS Next 5Y8.9%
Revenue Next Year15.15%
Revenue Next 2Y10.16%
Revenue Next 3Y8.61%
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
- Based on the Price/Earnings ratio of 31.36, the valuation of UWS can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of UWS is on the same level as its industry peers.
- UWS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 26.51 indicates a quite expensive valuation of UWS.
- UWS's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of UWS to the average of the S&P500 Index (25.98), we can say UWS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.36 | ||
| Fwd PE | 26.51 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UWS indicates a slightly more expensive valuation: UWS is more expensive than 61.36% of the companies listed in the same industry.
- UWS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.22 | ||
| EV/EBITDA | 16.16 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UWS does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of UWS may justify a higher PE ratio.
PEG (NY)4.65
PEG (5Y)3.05
EPS Next 2Y9.04%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
- UWS has a Yearly Dividend Yield of 1.49%.
- Compared to an average industry Dividend Yield of 2.60, UWS has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, UWS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
- The dividend of UWS is nicely growing with an annual growth rate of 7.85%!
Dividend Growth(5Y)7.85%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- UWS pays out 50.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
- UWS'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 2Y9.04%
EPS Next 3Y10.76%
WASTE MANAGEMENT INC / UWS.DE FAQ
Can you provide the ChartMill fundamental rating for WASTE MANAGEMENT INC?
ChartMill assigns a fundamental rating of 4 / 10 to UWS.DE.
Can you provide the valuation status for WASTE MANAGEMENT INC?
ChartMill assigns a valuation rating of 2 / 10 to WASTE MANAGEMENT INC (UWS.DE). This can be considered as Overvalued.
Can you provide the profitability details for WASTE MANAGEMENT INC?
WASTE MANAGEMENT INC (UWS.DE) has a profitability rating of 7 / 10.
How financially healthy is WASTE MANAGEMENT INC?
The financial health rating of WASTE MANAGEMENT INC (UWS.DE) is 2 / 10.
Can you provide the dividend sustainability for UWS stock?
The dividend rating of WASTE MANAGEMENT INC (UWS.DE) is 4 / 10 and the dividend payout ratio is 50.78%.