WASTE MANAGEMENT INC (UWS.DE) Stock Fundamental Analysis
FRA:UWS - Deutsche Boerse Ag - US94106L1098 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to UWS. UWS was compared to 44 industry peers in the Commercial Services & Supplies industry. UWS scores excellent on profitability, but there are concerns on its financial health. UWS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year UWS was profitable.
In the past year UWS had a positive cash flow from operations.
Each year in the past 5 years UWS has been profitable.
Each year in the past 5 years UWS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.16%, UWS belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
UWS has a better Return On Equity (33.28%) than 91.30% of its industry peers.
UWS's Return On Invested Capital of 8.38% is fine compared to the rest of the industry. UWS outperforms 78.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UWS is in line with the industry average of 7.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 33.28% | ||
| ROIC | 8.38% |
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
UWS has a better Profit Margin (12.45%) than 93.48% of its industry peers.
In the last couple of years the Profit Margin of UWS has grown nicely.
UWS's Operating Margin of 18.81% is amongst the best of the industry. UWS outperforms 93.48% of its industry peers.
In the last couple of years the Operating Margin of UWS has remained more or less at the same level.
UWS's Gross Margin of 39.34% is in line compared to the rest of the industry. UWS outperforms 47.83% of its industry peers.
UWS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.81% | ||
| PM (TTM) | 12.45% | ||
| GM | 39.34% |
OM growth 3Y4.47%
OM growth 5Y1.08%
PM growth 3Y7.11%
PM growth 5Y2.87%
GM growth 3Y1.13%
GM growth 5Y-3.63%
2. Health
2.1 Basic Checks
UWS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, UWS has about the same amount of shares outstanding.
Compared to 5 years ago, UWS has less shares outstanding
The debt/assets ratio for UWS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that UWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.76, UWS belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
The Debt to FCF ratio of UWS is 11.07, which is on the high side as it means it would take UWS, 11.07 years of fcf income to pay off all of its debts.
UWS's Debt to FCF ratio of 11.07 is in line compared to the rest of the industry. UWS outperforms 52.17% of its industry peers.
A Debt/Equity ratio of 2.73 is on the high side and indicates that UWS has dependencies on debt financing.
UWS has a Debt to Equity ratio of 2.73. This is in the lower half of the industry: UWS underperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.73 | ||
| Debt/FCF | 11.07 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.09
WACC7.71%
2.3 Liquidity
UWS has a Current Ratio of 0.76. This is a bad value and indicates that UWS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.76, UWS is doing worse than 76.09% of the companies in the same industry.
UWS has a Quick Ratio of 0.76. This is a bad value and indicates that UWS is not financially healthy enough and could expect problems in meeting its short term obligations.
UWS has a worse Quick ratio (0.73) than 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
UWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.80%, which is quite good.
UWS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.29% yearly.
The Revenue has grown by 8.01% in the past year. This is quite good.
Measured over the past years, UWS shows a small growth in Revenue. The Revenue has been growing by 7.38% on average per year.
EPS 1Y (TTM)16.8%
EPS 3Y14.23%
EPS 5Y10.29%
EPS Q2Q%-2.3%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y7.16%
Revenue growth 5Y7.38%
Sales Q2Q%12.96%
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 10.53% on average per year.
The Revenue is expected to grow by 8.37% on average over the next years. This is quite good.
EPS Next Y9.23%
EPS Next 2Y11.38%
EPS Next 3Y10.95%
EPS Next 5Y10.53%
Revenue Next Year16.72%
Revenue Next 2Y11.05%
Revenue Next 3Y8.77%
Revenue Next 5Y8.37%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.23, the valuation of UWS can be described as expensive.
UWS's Price/Earnings ratio is in line with the industry average.
UWS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 28.59 indicates a quite expensive valuation of UWS.
The rest of the industry has a similar Price/Forward Earnings ratio as UWS.
UWS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.23 | ||
| Fwd PE | 28.59 |
4.2 Price Multiples
UWS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. UWS is more expensive than 60.87% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UWS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.06 | ||
| EV/EBITDA | 17.81 |
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 UWS may justify a higher PE ratio.
PEG (NY)3.38
PEG (5Y)3.03
EPS Next 2Y11.38%
EPS Next 3Y10.95%
5. Dividend
5.1 Amount
UWS has a Yearly Dividend Yield of 1.46%.
UWS's Dividend Yield is comparable with the industry average which is at 3.64.
UWS's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
On average, the dividend of UWS grows each year by 7.84%, which is quite nice.
Dividend Growth(5Y)7.84%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
UWS pays out 44.06% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of UWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.06%
EPS Next 2Y11.38%
EPS Next 3Y10.95%
FRA:UWS (3/7/2025, 7:00:00 PM)
208
-2.75 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.94%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap83.64B
Analysts78.71
Price Target232.19 (11.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.78
Dividend Growth(5Y)7.84%
DP44.06%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.49%
Min EPS beat(2)-7.87%
Max EPS beat(2)0.88%
EPS beat(4)2
Avg EPS beat(4)0.67%
Min EPS beat(4)-7.87%
Max EPS beat(4)12.87%
EPS beat(8)3
Avg EPS beat(8)0.63%
EPS beat(12)5
Avg EPS beat(12)0.39%
EPS beat(16)7
Avg EPS beat(16)-0.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.25%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-2.89%
Revenue beat(12)2
Avg Revenue beat(12)-2.22%
Revenue beat(16)3
Avg Revenue beat(16)-1.68%
PT rev (1m)3.49%
PT rev (3m)2.92%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-7.27%
EPS NY rev (1m)-4.3%
EPS NY rev (3m)-5.16%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)6.79%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)6.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.23 | ||
| Fwd PE | 28.59 | ||
| P/S | 4.12 | ||
| P/FCF | 42.06 | ||
| P/OCF | 16.85 | ||
| P/B | 11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.81 |
EPS(TTM)6.66
EY3.2%
EPS(NY)7.27
Fwd EY3.5%
FCF(TTM)4.95
FCFY2.38%
OCF(TTM)12.35
OCFY5.94%
SpS50.54
BVpS18.9
TBVpS-21.47
PEG (NY)3.38
PEG (5Y)3.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 33.28% | ||
| ROCE | 10.83% | ||
| ROIC | 8.38% | ||
| ROICexc | 8.47% | ||
| ROICexgc | 15.84% | ||
| OM | 18.81% | ||
| PM (TTM) | 12.45% | ||
| GM | 39.34% | ||
| FCFM | 9.79% |
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%
ROICexcg growth 3Y1.2%
ROICexcg 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 5Y-3.63%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.73 | ||
| Debt/FCF | 11.07 | ||
| Debt/EBITDA | 3.51 | ||
| Cap/Depr | 142.52% | ||
| Cap/Sales | 14.64% | ||
| Interest Coverage | 7.83 | ||
| Cash Conversion | 84.01% | ||
| Profit Quality | 78.62% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.76 |
F-Score5
WACC7.71%
ROIC/WACC1.09
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)16.8%
EPS 3Y14.23%
EPS 5Y10.29%
EPS Q2Q%-2.3%
EPS Next Y9.23%
EPS Next 2Y11.38%
EPS Next 3Y10.95%
EPS Next 5Y10.53%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y7.16%
Revenue growth 5Y7.38%
Sales Q2Q%12.96%
Revenue Next Year16.72%
Revenue Next 2Y11.05%
Revenue Next 3Y8.77%
Revenue Next 5Y8.37%
EBIT growth 1Y8.53%
EBIT growth 3Y11.95%
EBIT growth 5Y8.54%
EBIT Next Year74.45%
EBIT Next 3Y26.35%
EBIT Next 5Y19.08%
FCF growth 1Y18.37%
FCF growth 3Y-3.92%
FCF growth 5Y0.98%
OCF growth 1Y14.22%
OCF growth 3Y7.51%
OCF growth 5Y6.83%