(WM) Waste Management - Ratings and Ratios
Waste Collection, Recycling, Landfill Services, Renewable Energy, Waste Disposal
WM EPS (Earnings per Share)
WM Revenue
Description: WM Waste Management
Waste Management Inc (WM) is a leading provider of environmental solutions, offering a comprehensive range of services including waste collection, transfer, and disposal, as well as recycling and renewable energy production. The companys extensive network serves residential, commercial, industrial, and municipal customers across the United States, Canada, Western Europe, and internationally.
WMs diversified business model includes collection services, landfill operations, and recycling services, with a focus on sustainability and environmental stewardship. The company has been investing in renewable energy, including landfill gas-to-energy facilities, and has a growing presence in the recycling industry, with a range of materials processing and commodities recycling services. Key performance indicators (KPIs) to watch include revenue growth, operating margins, and return on invested capital (ROIC), which have historically been strong due to the companys dominant market position and efficient operations.
From a financial perspective, WM has demonstrated a commitment to returning capital to shareholders through dividends and share repurchases. The companys dividend yield is around 1.6%, and it has a history of consistently increasing its dividend payout. Additionally, WMs strong cash flow generation enables it to invest in growth initiatives and make strategic acquisitions to expand its service offerings and geographic reach. Key metrics to monitor include the companys debt-to-equity ratio, currently around 0.7, and its interest coverage ratio, which indicates its ability to service its debt.
As a Trading Analyst, its essential to evaluate WMs valuation multiples, including its price-to-earnings (P/E) ratio of 33.92 and forward P/E of 29.59, in the context of its industry peers and the broader market. The companys return on equity (ROE) of 33.09% is also a key metric, indicating its ability to generate strong returns on shareholder capital. By analyzing these KPIs and fundamental data, investors can gain a deeper understanding of WMs financial health and growth prospects.
WM Stock Overview
| Market Cap in USD | 92,663m |
| Sub-Industry | Environmental & Facilities Services |
| IPO / Inception | 1988-06-02 |
WM Stock Ratings
| Growth Rating | 82.0% |
| Fundamental | 66.4% |
| Dividend Rating | 59.8% |
| Return 12m vs S&P 500 | -7.53% |
| Analyst Rating | 3.84 of 5 |
WM Dividends
| Dividend Yield 12m | 1.40% |
| Yield on Cost 5y | 2.99% |
| Annual Growth 5y | 6.59% |
| Payout Consistency | 93.9% |
| Payout Ratio | 43.5% |
WM Growth Ratios
| Growth Correlation 3m | -50.5% |
| Growth Correlation 12m | 79% |
| Growth Correlation 5y | 94.6% |
| CAGR 5y | 16.47% |
| CAGR/Max DD 5y | 0.98 |
| Sharpe Ratio 12m | 0.61 |
| Alpha | 1.17 |
| Beta | 0.274 |
| Volatility | 16.33% |
| Current Volume | 1001k |
| Average Volume 20d | 1389.5k |
| Stop Loss | 217.8 (-3%) |
| Signal | -0.53 |
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income (2.72b TTM) > 0 and > 6% of Revenue (6% = 1.44b TTM) |
| FCFTA 0.05 (>2.0%) and ΔFCFTA -1.49pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -3.47% (prev 1.44%; Δ -4.92pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.12 (>3.0%) and CFO 5.62b > Net Income 2.72b (YES >=105%, WARN >=100%) |
| Net Debt (23.58b) to EBITDA (6.92b) ratio: 3.41 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.86 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (404.3m) change vs 12m ago 0.27% (target <= -2.0% for YES) |
| Gross Margin 28.97% (prev 29.12%; Δ -0.16pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 60.08% (prev 61.70%; Δ -1.61pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.29 (EBITDA TTM 6.92b / Interest Expense TTM 796.0m) >= 6 (WARN >= 3) |
Altman Z'' 2.25
| (A) -0.02 = (Total Current Assets 4.98b - Total Current Liabilities 5.82b) / Total Assets 45.72b |
| (B) 0.36 = Retained Earnings (Balance) 16.55b / Total Assets 45.72b |
| (C) 0.11 = EBIT TTM 4.21b / Avg Total Assets 39.86b |
| (D) 0.45 = Book Value of Equity 16.57b / Total Liabilities 36.52b |
| Total Rating: 2.25 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 66.39
| 1. Piotroski 4.0pt = -1.0 |
| 2. FCF Yield 1.86% = 0.93 |
| 3. FCF Margin 9.03% = 2.26 |
| 4. Debt/Equity 2.61 = -0.17 |
| 5. Debt/Ebitda 3.47 = -2.29 |
| 6. ROIC - WACC 5.17% = 6.47 |
| 7. RoE 31.93% = 2.50 |
| 8. Rev. Trend 92.11% = 4.61 |
| 9. Rev. CAGR 8.99% = 1.12 |
| 10. EPS Trend 56.16% = 1.40 |
| 11. EPS CAGR 5.69% = 0.57 |
What is the price of WM shares?
Over the past week, the price has changed by -2.19%, over one month by -1.46%, over three months by -4.97% and over the past year by +8.82%.
Is Waste Management a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of WM is around 230.09 USD . This means that WM is currently overvalued and has a potential downside of 2.45%.
Is WM a buy, sell or hold?
- Strong Buy: 9
- Buy: 4
- Hold: 11
- Sell: 1
- Strong Sell: 0
What are the forecasts/targets for the WM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 256.5 | 14.2% |
| Analysts Target Price | 247.5 | 10.2% |
| ValueRay Target Price | 250.2 | 11.4% |
Last update: 2025-08-21 11:40
WM Fundamental Data Overview
CCE Cash And Equivalents = 440.0m USD (last quarter)
P/E Trailing = 34.1291
P/E Forward = 30.1205
P/S = 3.869
P/B = 10.071
P/EG = 2.9382
Beta = 0.644
Revenue TTM = 23.95b USD
EBIT TTM = 4.21b USD
EBITDA TTM = 6.92b USD
Long Term Debt = 23.06b USD (from longTermDebt, last quarter)
Short Term Debt = 964.0m USD (from shortTermDebt, last quarter)
Debt = 24.02b USD (Calculated: Short Term 964.0m + Long Term 23.06b)
Net Debt = 23.58b USD (from netDebt column, last quarter)
Enterprise Value = 116.24b USD (92.66b + Debt 24.02b - CCE 440.0m)
Interest Coverage Ratio = 5.29 (Ebit TTM 4.21b / Interest Expense TTM 796.0m)
FCF Yield = 1.86% (FCF TTM 2.16b / Enterprise Value 116.24b)
FCF Margin = 9.03% (FCF TTM 2.16b / Revenue TTM 23.95b)
Net Margin = 11.36% (Net Income TTM 2.72b / Revenue TTM 23.95b)
Gross Margin = 28.97% ((Revenue TTM 23.95b - Cost of Revenue TTM 17.01b) / Revenue TTM)
Tobins Q-Ratio = 7.02 (Enterprise Value 116.24b / Book Value Of Equity 16.57b)
Interest Expense / Debt = 0.97% (Interest Expense 232.0m / Debt 24.02b)
Taxrate = 20.62% (from yearly Income Tax Expense: 713.0m / 3.46b)
NOPAT = 3.34b (EBIT 4.21b * (1 - 20.62%))
Current Ratio = 0.86 (Total Current Assets 4.98b / Total Current Liabilities 5.82b)
Debt / Equity = 2.61 (Debt 24.02b / last Quarter total Stockholder Equity 9.20b)
Debt / EBITDA = 3.47 (Net Debt 23.58b / EBITDA 6.92b)
Debt / FCF = 11.10 (Debt 24.02b / FCF TTM 2.16b)
Total Stockholder Equity = 8.52b (last 4 quarters mean)
RoA = 5.95% (Net Income 2.72b, Total Assets 45.72b )
RoE = 31.93% (Net Income TTM 2.72b / Total Stockholder Equity 8.52b)
RoCE = 13.32% (Ebit 4.21b / (Equity 8.52b + L.T.Debt 23.06b))
RoIC = 10.91% (NOPAT 3.34b / Invested Capital 30.62b)
WACC = 5.73% (E(92.66b)/V(116.68b) * Re(7.02%)) + (D(24.02b)/V(116.68b) * Rd(0.97%) * (1-Tc(0.21)))
Shares Correlation 5-Years: -70.0 | Cagr: -0.98%
Discount Rate = 7.02% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 76.97% ; FCFE base≈2.14b ; Y1≈1.97b ; Y5≈1.76b
Fair Price DCF = 78.65 (DCF Value 31.68b / Shares Outstanding 402.8m; 5y FCF grow -10.27% → 3.0% )
Revenue Correlation: 92.11 | Revenue CAGR: 8.99%
Rev Growth-of-Growth: 8.42
EPS Correlation: 56.16 | EPS CAGR: 5.69%
EPS Growth-of-Growth: -3.79
Additional Sources for WM Stock
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Fund Manager Positions: Dataroma | Stockcircle