WASTE MANAGEMENT INC (WM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WM - US94106L1098 - Common Stock
214 USD
+0.63 (+0.3%)
WM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. While WM belongs to the best of the industry regarding profitability, there are concerns on its financial health. WM 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 WM was profitable.
In the past year WM had a positive cash flow from operations.
WM had positive earnings in each of the past 5 years.
In the past 5 years WM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WM (5.62%) is better than 71.95% of its industry peers.
WM's Return On Equity of 26.94% is amongst the best of the industry. WM outperforms 92.68% of its industry peers.
WM has a better Return On Invested Capital (8.48%) 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 10.51%.
| 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%, WM belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
WM's Profit Margin has improved in the last couple of years.
WM has a Operating Margin of 17.64%. This is amongst the best in the industry. WM outperforms 91.46% of its industry peers.
WM's Operating Margin has been stable in the last couple of years.
WM's Gross Margin of 39.99% is fine compared to the rest of the industry. WM outperforms 68.29% of its industry peers.
In the last couple of years the Gross Margin of WM has remained more or less at the same level.
| 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.
The debt/assets ratio for WM is higher compared to a year ago.
2.2 Solvency
WM has an Altman-Z score of 2.79. 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 has a Altman-Z score (2.79) which is in line with its industry peers.
WM has a debt to FCF ratio of 9.73. This is a negative value and a sign of low solvency as WM would need 9.73 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.73, WM perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
A Debt/Equity ratio of 2.36 is on the high side and indicates that WM has dependencies on debt financing.
WM has a Debt to Equity ratio of 2.36. This is amonst the worse of the industry: WM underperforms 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 9.73 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.12
WACC7.55%
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.
WM's Current ratio of 0.84 is on the low side compared to the rest of the industry. WM is outperformed by 79.27% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.80, WM is doing worse than 76.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
WM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
WM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.29% yearly.
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
The Earnings Per Share is expected to grow by 8.90% on average over the next years. This is quite good.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.44, which means the current valuation is very expensive for WM.
Compared to the rest of the industry, the Price/Earnings ratio of WM is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.41. WM is around the same levels.
WM is valuated rather expensively with a Price/Forward Earnings ratio of 24.91.
WM's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, WM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.44 | ||
| Fwd PE | 24.91 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.89 | ||
| EV/EBITDA | 15.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of WM may justify a higher PE ratio.
PEG (NY)4.29
PEG (5Y)2.86
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.
WM's Dividend Yield is rather good when compared to the industry average which is at 2.48. WM pays more dividend than 81.71% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, WM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
On average, the dividend of WM grows each year by 7.85%, which is quite nice.
WM has paid a dividend for at least 10 years, which is a reliable track record.
WM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.85%
Div Incr Years21
Div Non Decr Years25
5.3 Sustainability
50.78% of the earnings are spent on dividend by WM. 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 (12/5/2025, 3:06:42 PM)
214
+0.63 (+0.3%)
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 Change0.48%
Market Cap86.21B
Revenue(TTM)24.78B
Net Income(TTM)2.56B
Analysts78.82
Price Target249.25 (16.47%)
Short Float %1.13%
Short Ratio2.37
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)-2.26%
PT rev (3m)-4.49%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-1.7%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.44 | ||
| Fwd PE | 24.91 | ||
| P/S | 3.48 | ||
| P/FCF | 35.89 | ||
| P/OCF | 14.72 | ||
| P/B | 9.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.38 |
EPS(TTM)7.27
EY3.4%
EPS(NY)8.59
Fwd EY4.01%
FCF(TTM)5.96
FCFY2.79%
OCF(TTM)14.54
OCFY6.79%
SpS61.52
BVpS23.63
TBVpS-20.47
PEG (NY)4.29
PEG (5Y)2.86
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 | 2.79 |
F-Score4
WACC7.55%
ROIC/WACC1.12
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%.