WASTE MANAGEMENT INC (WM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WM - US94106L1098 - Common Stock
221.3 USD
+0.07 (+0.03%)
221.3 USD
0 (0%)
Overall WM gets a fundamental rating of 4 out of 10. We evaluated WM against 80 industry peers in the Commercial Services & Supplies industry. While WM has a great profitability rating, there are quite some concerns on its financial health. WM is quite expensive at the moment. It does show a decent growth rate. Finally WM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- WM had positive earnings in the past year.
- In the past year WM had a positive cash flow from operations.
- 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.
1.2 Ratios
- With a decent Return On Assets value of 5.62%, WM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 26.94%, WM belongs to the top of the industry, outperforming 91.25% of the companies in the same industry.
- WM has a better Return On Invested Capital (8.48%) than 72.50% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WM is in line with the industry average of 10.58%.
| 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%, WM belongs to the best of the industry, outperforming 86.25% of the companies in the same industry.
- In the last couple of years the Profit Margin of WM has grown nicely.
- WM's Operating Margin of 17.64% is amongst the best of the industry. WM outperforms 90.00% of its industry peers.
- In the last couple of years the Operating Margin of WM has remained more or less at the same level.
- With a decent Gross Margin value of 39.99%, WM is doing good in the industry, outperforming 66.25% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WM is creating some value.
- WM has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, WM has less shares outstanding
- WM has a worse debt/assets ratio than last year.
2.2 Solvency
- WM has an Altman-Z score of 2.83. 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.
- The Altman-Z score of WM (2.83) is comparable to the rest of the industry.
- 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.
- WM has a Debt to FCF ratio (9.73) which is in line with its industry peers.
- WM has a Debt/Equity ratio of 2.36. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of WM (2.36) is worse than 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 9.73 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.11
WACC7.62%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that WM may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.84, WM is doing worse than 78.75% of the companies in the same industry.
- A Quick Ratio of 0.80 indicates that WM may have some problems paying its short term obligations.
- WM has a Quick ratio of 0.80. This is in the lower half of the industry: WM underperforms 76.25% of its industry peers.
| 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.
- Measured over the past years, WM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.29% on average per year.
- WM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.88%.
- 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, WM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.90% on average per year.
- Based on estimates for the next years, WM will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
EPS Next Y6.74%
EPS Next 2Y9.04%
EPS Next 3Y10.76%
EPS Next 5Y8.9%
Revenue Next Year15.15%
Revenue Next 2Y10.21%
Revenue Next 3Y8.64%
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 30.44, which means the current valuation is very expensive for WM.
- The rest of the industry has a similar Price/Earnings ratio as WM.
- The average S&P500 Price/Earnings ratio is at 27.38. WM is around the same levels.
- The Price/Forward Earnings ratio is 25.74, which means the current valuation is very expensive for WM.
- 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.
- When comparing the Price/Forward Earnings ratio of WM to the average of the S&P500 Index (24.29), we can say WM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 25.74 |
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 | 37.12 | ||
| EV/EBITDA | 15.78 |
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)4.52
PEG (5Y)2.96
EPS Next 2Y9.04%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
- WM has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
- WM's Dividend Yield is rather good when compared to the industry average which is at 0.83. WM pays more dividend than 83.75% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, WM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
- On average, the dividend of WM grows each year by 7.85%, 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 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
- 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 2Y9.04%
EPS Next 3Y10.76%
221.3
+0.07 (+0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-27 2025-10-27/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners83.51%
Inst Owner Change0.23%
Ins Owners0.18%
Ins Owner Change0.39%
Market Cap89.16B
Revenue(TTM)24.78B
Net Income(TTM)2.56B
Analysts81.62
Price Target252.16 (13.94%)
Short Float %1.19%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend3.01
Dividend Growth(5Y)7.85%
DP50.78%
Div Incr Years21
Div Non Decr Years25
Ex-DateN/A
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)1.14%
PT rev (3m)-3.56%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 25.74 | ||
| P/S | 3.6 | ||
| P/FCF | 37.12 | ||
| P/OCF | 15.22 | ||
| P/B | 9.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.78 |
EPS(TTM)7.27
EY3.29%
EPS(NY)8.6
Fwd EY3.88%
FCF(TTM)5.96
FCFY2.69%
OCF(TTM)14.54
OCFY6.57%
SpS61.52
BVpS23.63
TBVpS-20.47
PEG (NY)4.52
PEG (5Y)2.96
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 | 2.83 |
F-Score4
WACC7.62%
ROIC/WACC1.11
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 Y6.74%
EPS Next 2Y9.04%
EPS Next 3Y10.76%
EPS Next 5Y8.9%
Revenue 1Y (TTM)15.88%
Revenue growth 3Y7.16%
Revenue growth 5Y7.38%
Sales Q2Q%14.87%
Revenue Next Year15.15%
Revenue Next 2Y10.21%
Revenue Next 3Y8.64%
Revenue Next 5Y7.38%
EBIT growth 1Y3.11%
EBIT growth 3Y11.95%
EBIT growth 5Y8.54%
EBIT Next Year74.63%
EBIT Next 3Y26.67%
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.
What is the valuation status for WM stock?
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 valuation of WASTE MANAGEMENT INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WASTE MANAGEMENT INC (WM) is 30.44 and the Price/Book (PB) ratio is 9.37.
Can you provide the expected EPS growth for WM stock?
The Earnings per Share (EPS) of WASTE MANAGEMENT INC (WM) is expected to grow by 6.74% in the next year.