WASTE MANAGEMENT INC (WM) Fundamental Analysis & Valuation

NYSE:WM • US94106L1098

Current stock price

229.53 USD
-3.27 (-1.4%)
At close:
228.074 USD
-1.46 (-0.63%)
Pre-Market:

This WM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. WM Profitability Analysis

1.1 Basic Checks

  • WM had positive earnings in the past year.
  • WM had a positive operating cash flow in the past year.
  • 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.
WM Yearly Net Income VS EBIT VS OCF VS FCFWM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • WM's Return On Assets of 5.91% is fine compared to the rest of the industry. WM outperforms 78.75% of its industry peers.
  • Looking at the Return On Equity, with a value of 27.11%, WM belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
  • The Return On Invested Capital of WM (9.05%) is better than 77.50% of its industry peers.
  • WM had an Average Return On Invested Capital over the past 3 years of 9.41%. This is in line with the industry average of 9.48%.
Industry RankSector Rank
ROA 5.91%
ROE 27.11%
ROIC 9.05%
ROA(3y)6.36%
ROA(5y)6.49%
ROE(3y)31.25%
ROE(5y)30.39%
ROIC(3y)9.41%
ROIC(5y)9.53%
WM Yearly ROA, ROE, ROICWM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 10.74%, WM belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
  • WM's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 18.28%, WM belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • WM's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 40.44%, WM is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
  • WM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 18.28%
PM (TTM) 10.74%
GM 40.44%
OM growth 3Y1.65%
OM growth 5Y2.08%
PM growth 3Y-1.84%
PM growth 5Y1.79%
GM growth 3Y2.47%
GM growth 5Y0.92%
WM Yearly Profit, Operating, Gross MarginsWM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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3

2. WM Health Analysis

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.
  • The number of shares outstanding for WM has been increased compared to 1 year ago.
  • WM has less shares outstanding than it did 5 years ago.
  • WM has a better debt/assets ratio than last year.
WM Yearly Shares OutstandingWM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
WM Yearly Total Debt VS Total AssetsWM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • WM has an Altman-Z score of 2.94. 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 of 2.94. This is in the better half of the industry: WM outperforms 68.75% of its industry peers.
  • The Debt to FCF ratio of WM is 8.13, which is on the high side as it means it would take WM, 8.13 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of WM (8.13) is better than 63.75% of its industry peers.
  • WM has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of WM (2.22) is worse than 78.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 8.13
Altman-Z 2.94
ROIC/WACC1.07
WACC8.44%
WM Yearly LT Debt VS Equity VS FCFWM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • A Current Ratio of 0.89 indicates that WM may have some problems paying its short term obligations.
  • WM has a worse Current ratio (0.89) than 77.50% of its industry peers.
  • WM has a Quick Ratio of 0.89. 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 has a worse Quick ratio (0.85) than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.85
WM Yearly Current Assets VS Current LiabilitesWM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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5

3. WM Growth Analysis

3.1 Past

  • WM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.73%.
  • WM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.23% yearly.
  • WM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.24%.
  • WM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.62% yearly.
EPS 1Y (TTM)3.73%
EPS 3Y10.29%
EPS 5Y13.23%
EPS Q2Q%13.53%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y8.56%
Revenue growth 5Y10.62%
Sales Q2Q%7.13%

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 11.28% on average per year.
  • Based on estimates for the next years, WM will show a small growth in Revenue. The Revenue will grow by 5.28% on average per year.
EPS Next Y12.75%
EPS Next 2Y13.38%
EPS Next 3Y12.3%
EPS Next 5Y11.28%
Revenue Next Year4.72%
Revenue Next 2Y5.09%
Revenue Next 3Y5.02%
Revenue Next 5Y5.28%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
WM Yearly Revenue VS EstimatesWM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
WM Yearly EPS VS EstimatesWM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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4

4. WM Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 30.60, the valuation of WM can be described as expensive.
  • WM's Price/Earnings ratio is a bit cheaper when compared to the industry. WM is cheaper than 63.75% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of WM to the average of the S&P500 Index (27.42), we can say WM is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 27.14, WM can be considered very expensive at the moment.
  • 61.25% of the companies in the same industry are more expensive than WM, based on the Price/Forward Earnings ratio.
  • WM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.29.
Industry RankSector Rank
PE 30.6
Fwd PE 27.14
WM Price Earnings VS Forward Price EarningsWM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • WM's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of WM indicates a somewhat cheap valuation: WM is cheaper than 61.25% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 32.84
EV/EBITDA 15.42
WM Per share dataWM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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 excellent profitability rating of WM may justify a higher PE ratio.
  • A more expensive valuation may be justified as WM's earnings are expected to grow with 12.30% in the coming years.
PEG (NY)2.4
PEG (5Y)2.31
EPS Next 2Y13.38%
EPS Next 3Y12.3%

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7

5. WM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.68%, 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 0.86. WM pays more dividend than 85.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, WM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.68%

5.2 History

  • The dividend of WM is nicely growing with an annual growth rate of 8.67%!
  • 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)8.67%
Div Incr Years22
Div Non Decr Years26
WM Yearly Dividends per shareWM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • WM pays out 49.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of WM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.26%
EPS Next 2Y13.38%
EPS Next 3Y12.3%
WM Yearly Income VS Free CF VS DividendWM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
WM Dividend Payout.WM Dividend Payout, showing the Payout Ratio.WM Dividend Payout.PayoutRetained Earnings

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WM Fundamentals: All Metrics, Ratios and Statistics

WASTE MANAGEMENT INC

NYSE:WM (4/24/2026, 8:14:28 PM)

Premarket: 228.074 -1.46 (-0.63%)

229.53

-3.27 (-1.4%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners84.02%
Inst Owner Change-0.39%
Ins Owners0.18%
Ins Owner Change0.54%
Market Cap92.48B
Revenue(TTM)25.20B
Net Income(TTM)2.71B
Analysts80.51
Price Target257.05 (11.99%)
Short Float %1.46%
Short Ratio2.65
Dividend
Industry RankSector Rank
Dividend Yield 1.68%
Yearly Dividend3.32
Dividend Growth(5Y)8.67%
DP49.26%
Div Incr Years22
Div Non Decr Years26
Ex-Date03-13
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.13%
Min EPS beat(2)-4.76%
Max EPS beat(2)-3.5%
EPS beat(4)1
Avg EPS beat(4)-2.43%
Min EPS beat(4)-4.76%
Max EPS beat(4)0.19%
EPS beat(8)3
Avg EPS beat(8)-0.88%
EPS beat(12)4
Avg EPS beat(12)-0.39%
EPS beat(16)6
Avg EPS beat(16)-0.32%
Revenue beat(2)0
Avg Revenue beat(2)-3.94%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)-3.82%
Revenue beat(4)0
Avg Revenue beat(4)-3.54%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-1.83%
Revenue beat(8)0
Avg Revenue beat(8)-2.93%
Revenue beat(12)0
Avg Revenue beat(12)-3.11%
Revenue beat(16)2
Avg Revenue beat(16)-2.55%
PT rev (1m)0.39%
PT rev (3m)1.94%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-1.62%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
Industry RankSector Rank
PE 30.6
Fwd PE 27.14
P/S 3.67
P/FCF 32.84
P/OCF 15.3
P/B 9.26
P/tB N/A
EV/EBITDA 15.42
EPS(TTM)7.5
EY3.27%
EPS(NY)8.46
Fwd EY3.68%
FCF(TTM)6.99
FCFY3.04%
OCF(TTM)15
OCFY6.53%
SpS62.55
BVpS24.79
TBVpS-19
PEG (NY)2.4
PEG (5Y)2.31
Graham Number64.6846 (-71.82%)
Profitability
Industry RankSector Rank
ROA 5.91%
ROE 27.11%
ROCE 11.43%
ROIC 9.05%
ROICexc 9.1%
ROICexgc 16.25%
OM 18.28%
PM (TTM) 10.74%
GM 40.44%
FCFM 11.17%
ROA(3y)6.36%
ROA(5y)6.49%
ROE(3y)31.25%
ROE(5y)30.39%
ROIC(3y)9.41%
ROIC(5y)9.53%
ROICexc(3y)9.51%
ROICexc(5y)9.63%
ROICexgc(3y)16.39%
ROICexgc(5y)16.26%
ROCE(3y)11.88%
ROCE(5y)12.03%
ROICexgc growth 3Y-0.49%
ROICexgc growth 5Y4.47%
ROICexc growth 3Y-3.74%
ROICexc growth 5Y2.93%
OM growth 3Y1.65%
OM growth 5Y2.08%
PM growth 3Y-1.84%
PM growth 5Y1.79%
GM growth 3Y2.47%
GM growth 5Y0.92%
F-Score7
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 8.13
Debt/EBITDA 2.97
Cap/Depr 112.71%
Cap/Sales 12.8%
Interest Coverage 4.97
Cash Conversion 80.9%
Profit Quality 103.99%
Current Ratio 0.89
Quick Ratio 0.85
Altman-Z 2.94
F-Score7
WACC8.44%
ROIC/WACC1.07
Cap/Depr(3y)131.68%
Cap/Depr(5y)123.44%
Cap/Sales(3y)13.87%
Cap/Sales(5y)13.07%
Profit Quality(3y)87.26%
Profit Quality(5y)96.58%
High Growth Momentum
Growth
EPS 1Y (TTM)3.73%
EPS 3Y10.29%
EPS 5Y13.23%
EPS Q2Q%13.53%
EPS Next Y12.75%
EPS Next 2Y13.38%
EPS Next 3Y12.3%
EPS Next 5Y11.28%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y8.56%
Revenue growth 5Y10.62%
Sales Q2Q%7.13%
Revenue Next Year4.72%
Revenue Next 2Y5.09%
Revenue Next 3Y5.02%
Revenue Next 5Y5.28%
EBIT growth 1Y11.04%
EBIT growth 3Y10.36%
EBIT growth 5Y12.92%
EBIT Next Year76.2%
EBIT Next 3Y25.97%
EBIT Next 5Y17.24%
FCF growth 1Y30.43%
FCF growth 3Y13.05%
FCF growth 5Y9.72%
OCF growth 1Y12.12%
OCF growth 3Y10.03%
OCF growth 5Y12.17%

WASTE MANAGEMENT INC / WM Fundamental Analysis FAQ

What is the fundamental rating for WM stock?

ChartMill assigns a fundamental rating of 5 / 10 to WM.


What is the valuation status for WM stock?

ChartMill assigns a valuation rating of 4 / 10 to WASTE MANAGEMENT INC (WM). This can be considered as Fairly Valued.


What is the profitability of WM stock?

WASTE MANAGEMENT INC (WM) has a profitability rating of 8 / 10.


What are the PE and PB ratios of WASTE MANAGEMENT INC (WM) stock?

The Price/Earnings (PE) ratio for WASTE MANAGEMENT INC (WM) is 30.6 and the Price/Book (PB) ratio is 9.26.


Can you provide the dividend sustainability for WM stock?

The dividend rating of WASTE MANAGEMENT INC (WM) is 7 / 10 and the dividend payout ratio is 49.26%.