WM Stock Analysis: Waste Management | NYSE
Waste Management | NYSE, USA | Market Cap: 90.555m USD | 12M Return: -0.8% | US94106L1098 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 422M
EPS Trend: 89.6%
Qual. Beats: 0
Rev. Trend: 98.5%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Waste Management, Inc. (NYSE: WM), headquartered in Houston, Texas, is one of the largest integrated environmental services providers in North America, operating across the United States, Canada, Western Europe, and select international markets. The company serves residential, commercial, industrial, and municipal customers through a vertically integrated business model that includes waste collection, transfer station operations, landfill ownership, recycling, and renewable energy generation from landfill gas. Waste generation is generally non-discretionary, which tends to make demand for collection and disposal services relatively stable through economic cycles, and landfill permits are difficult to obtain, creating high barriers to entry and long-lived competitive moats for incumbent operators like WM.
Its core collection segment transports waste and recyclables from the point of generation to transfer stations, recovery facilities, or disposal sites, while the company also owns and operates landfill gas-to-energy facilities that convert captured methane into renewable electricity and renewable natural gas. WM further runs materials recovery facilities that process cardboard, paper, glass, metals, plastics, and construction and demolition debris, then markets the resulting commodities either to resale buyers or via its recycling brokerage platform.
Beyond traditional solid waste, WM has expanded into adjacent specialty services, including the collection and processing of food and yard waste (sold as mulch, compost, and soil amendments), remediation and construction services, industrial waste handling, and the marketing of fly ash. Its Regulated Waste and Compliance Services (RWCS) unit handles medical, pharmaceutical, and hazardous waste under strict compliance regimes, while Secure Information Destruction (SID) provides document shredding and confidential paper recycling for corporate customers.
The company was founded in 1968 and was originally known as USA Waste Services, Inc. before adopting its current name in 1998, following the merger of USA Waste and the original Waste Management. Listed on the NYSE since 1988, WM is classified within the Industrials sector under the Environmental & Facilities Services sub-industry, with a market capitalization in the large-cap range.
- Landfill pricing and core volume growth boost collection revenue
- Recycling commodity price swings pressure materials processing margins
- Renewable natural gas investments and tuck-in acquisitions expand margins
| Net Income: 2.85b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 2.96 > 1.0 |
| NWC/Revenue: -2.15% < 20% (prev -3.47%; Δ 1.33% < -1%) |
| CFO/TA 0.14 > 3% & CFO 6.52b > Net Income 2.85b |
| Net Debt (22.8b) to EBITDA (7.54b): 3.03 < 3 |
| Current Ratio: 0.91 > 1.5 & < 3 |
| Outstanding Shares: last quarter (403.3m) vs 12m ago -0.25% < -2% |
| Gross Margin: 35.04% > 18% (prev 28.97%; Δ 6.07% > 0.5%) |
| Asset Turnover: 55.70% > 50% (prev 52.38%; Δ 3.32% > 0%) |
| Interest Coverage Ratio: 4.99 > 6 (EBIT TTM 4.53b / Interest Expense TTM 906.0m) |
| A: -0.01 (Total Current Assets 5.40b - Total Current Liabilities 5.95b) / Total Assets 46.4b |
| B: 0.39 (Retained Earnings 18.0b / Total Assets 46.4b) |
| C: 0.10 (EBIT TTM 4.53b / Avg Total Assets 46.1b) |
| D: 0.27 (Book Value of Equity 9.93b / Total Liabilities 36.5b) |
| Altman-Z'' = 2.13 = BBB |
| DSRI: 1.00 (Receivables 4.21b/3.93b, Revenue 25.7b/23.9b) |
| GMI: 0.83 (GM 28.97% / 35.04%) |
| AQI: 0.98 (AQ_t 0.44 / AQ_t-1 0.45) |
| SGI: 1.07 (Revenue 25.7b / 23.9b) |
| TATA: -0.08 (NI 2.85b - CFO 6.52b) / TA 46.4b) |
| Beneish M = -3.16 (Cap -4..+1) = AA |
As of August 06, 2026, the stock is trading at USD 224.31 with a total of 2,076,242 shares traded. Over the past week, the price has changed by -5.19%, over one month by -2.04%, over three months by +0.35% and over the past year by -0.82%.
Current recommended Stop Loss: 216.20 (which is 3.6% or 1.5 ATR below the current price).
Waste Management has received a consensus analysts rating of 3.84. Therefore, it is recommended to buy WM.
- StrongBuy: 9
- Buy: 4
- Hold: 11
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 260.6 | 16.2% |
P/E Trailing = 59.4619
P/E Forward = 27.3973
P/S = 3.5281
P/B = 9.124
P/EG = 2.3145
Revenue TTM = 25.7b USD
EBIT TTM = 4.53b USD
EBITDA TTM = 7.54b USD
Long Term Debt = 22.3b USD (from longTermDebt, last quarter)
Short Term Debt = 1.07b USD (from shortTermDebt, last quarter)
Debt = 23.4b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 22.8b USD (calculated: Debt 23.4b - CCE 557.0m)
Enterprise Value = 113b USD (90.6b + Debt 23.4b - CCE 557.0m)
Interest Coverage Ratio = 4.99 (Ebit TTM 4.53b / Interest Expense TTM 906.0m)
EV/FCF = 31.73x (Enterprise Value 113b / FCF TTM 3.57b)
FCF Yield = 3.15% (FCF TTM 3.57b / Enterprise Value 113b)
FCF Margin = 13.92% (FCF TTM 3.57b / Revenue TTM 25.7b)
Net Margin = 11.12% (Net Income TTM 2.85b / Revenue TTM 25.7b)
Gross Margin = 35.04% ((Revenue TTM 25.7b - Cost of Revenue TTM 16.7b) / Revenue TTM)
Gross Margin QoQ = 40.83% (prev 40.68%)
Tobins Q-Ratio = 2.44 (Enterprise Value 113b / Total Assets 46.4b)
Interest Expense / Debt = 3.88% (Interest Expense 906.0m / Debt 23.4b)
Taxrate = 21.27% (771.0m / 3.62b)
NOPAT = 3.56b (EBIT 4.53b * (1 - 21.27%))
Current Ratio = 0.91 (Total Current Assets 5.40b / Total Current Liabilities 5.95b)
Debt / Equity = 2.35 (Debt 23.4b / totalStockholderEquity, last quarter 9.93b)
Debt / EBITDA = 3.03 (Net Debt 22.8b / EBITDA 7.54b)
Debt / FCF = 6.38 (Net Debt 22.8b / FCF TTM 3.57b)
Total Stockholder Equity = 9.86b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.19% (Net Income 2.85b / Total Assets 46.4b)
RoE = 28.92% (Net Income TTM 2.85b / Total Stockholder Equity 9.86b)
RoCE = 14.08% (EBIT 4.53b / Capital Employed (Equity 9.86b + L.T.Debt 22.3b))
RoIC = 8.69% (NOPAT 3.56b / Invested Capital 41.0b)
WACC = 4.64% (E(90.6b)/V(114b) * Re(5.05%) + D(23.4b)/V(114b) * Rd(3.88%) * (1-Tc(0.21)))
Discount Rate = 5.05% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 54.80 | Cagr: -0.02%
[DCF] Terminal Value 77.97% ; FCFF base≈3.01b ; Y1≈3.45b ; Y5≈5.08b
[DCF] Fair Price = 134.1 (EV 76.4b - Net Debt 22.8b = Equity 53.6b / Shares 399.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 89.58 | EPS CAGR: 9.12% | SUE: 0.47 | # QB: 0
Revenue Correlation: 98.49 | Revenue CAGR: 10.63% | SUE: -0.39 | # QB: 0
EPS current Quarter (2026-09-30): EPS=2.18 | Chg30d=-1.02% | Revisions=+12% | Analysts=23
EPS current Year (2026-12-31): EPS=8.12 | Chg30d=-0.98% | Revisions=+15% | GrowthEPS=+8.3% | GrowthRev=+4.7%
EPS next Year (2027-12-31): EPS=9.14 | Chg30d=-1.12% | Revisions=-21% | GrowthEPS=+12.6% | GrowthRev=+5.5%
[Analyst] Revisions Ratio: +4% (up=28, down=26)