(WM) Waste Management - NYSE
Sector: Industrials | Industry: Waste Management | Exchange: NYSE (USA) | Market Cap: 86.178m USD | Total Return: -3.1% in 12m
Avg Turnover: 485M
EPS Trend: 91.2%
Qual. Beats: 0
Rev. Trend: 97.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
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: 2.79b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 3.07 > 1.0 |
| NWC/Revenue: -1.33% < 20% (prev -3.89%; Δ 2.56% < -1%) |
| CFO/TA 0.14 > 3% & CFO 6.34b > Net Income 2.79b |
| Net Debt (22.7b) to EBITDA (7.41b): 3.07 < 3 |
| Current Ratio: 0.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (404.4m) vs 12m ago 0.12% < -2% |
| Gross Margin: 32.06% > 18% (prev 28.89%; Δ 3.16% > 0.5%) |
| Asset Turnover: 56.36% > 50% (prev 51.53%; Δ 4.83% > 0%) |
| Interest Coverage Ratio: 4.89 > 6 (EBIT TTM 4.43b / Interest Expense TTM 905.0m) |
| A: -0.01 (Total Current Assets 4.81b - Total Current Liabilities 5.15b) / Total Assets 45.7b |
| B: 0.38 (Retained Earnings 17.6b / Total Assets 45.7b) |
| C: 0.10 (EBIT TTM 4.43b / Avg Total Assets 45.1b) |
| D: 0.28 (Book Value of Equity 10.0b / Total Liabilities 35.7b) |
| Altman-Z'' = 2.16 = BBB |
| DSRI: 1.00 (Receivables 3.96b/3.59b, Revenue 25.4b/22.9b) |
| GMI: 0.90 (GM 28.89% / 32.06%) |
| AQI: 0.98 (AQ_t 0.45 / AQ_t-1 0.46) |
| SGI: 1.11 (Revenue 25.4b / 22.9b) |
| TATA: -0.08 (NI 2.79b - CFO 6.34b) / TA 45.7b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of June 25, 2026, the stock is trading at USD 223.26 with a total of 2,068,041 shares traded. Over the past week, the price has changed by +2.14%, over one month by +4.06%, over three months by -0.32% and over the past year by -3.12%.
Current recommended Stop Loss: 216.80 (which is 2.9% 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 | 256 | 14.7% |
P/E Trailing = 31.0564
P/E Forward = 25.974
P/S = 3.3911
P/B = 8.5998
P/EG = 2.1846
Revenue TTM = 25.4b USD
EBIT TTM = 4.43b USD
EBITDA TTM = 7.41b USD
Long Term Debt = 22.2b USD (from longTermDebt, last quarter)
Short Term Debt = 641.0m USD (from shortTermDebt, last quarter)
Debt = 22.9b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 22.7b USD (calculated: Debt 22.9b - CCE 158.0m)
Enterprise Value = 109b USD (86.2b + Debt 22.9b - CCE 158.0m)
Interest Coverage Ratio = 4.89 (Ebit TTM 4.43b / Interest Expense TTM 905.0m)
EV/FCF = 33.10x (Enterprise Value 109b / FCF TTM 3.29b)
FCF Yield = 3.02% (FCF TTM 3.29b / Enterprise Value 109b)
FCF Margin = 12.95% (FCF TTM 3.29b / Revenue TTM 25.4b)
Net Margin = 10.99% (Net Income TTM 2.79b / Revenue TTM 25.4b)
Gross Margin = 32.06% ((Revenue TTM 25.4b - Cost of Revenue TTM 17.3b) / Revenue TTM)
Gross Margin QoQ = 40.68% (prev 29.30%)
Tobins Q-Ratio = 2.38 (Enterprise Value 109b / Total Assets 45.7b)
Interest Expense / Debt = 3.95% (Interest Expense 905.0m / Debt 22.9b)
Taxrate = 20.80% (734.0m / 3.53b)
NOPAT = 3.51b (EBIT 4.43b * (1 - 20.80%))
Current Ratio = 0.93 (Total Current Assets 4.81b / Total Current Liabilities 5.15b)
Debt / Equity = 2.28 (Debt 22.9b / totalStockholderEquity, last quarter 10.0b)
Debt / EBITDA = 3.07 (Net Debt 22.7b / EBITDA 7.41b)
Debt / FCF = 6.91 (Net Debt 22.7b / FCF TTM 3.29b)
Total Stockholder Equity = 9.68b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.20% (Net Income 2.79b / Total Assets 45.7b)
RoE = 28.85% (Net Income TTM 2.79b / Total Stockholder Equity 9.68b)
RoCE = 13.87% (EBIT 4.43b / Capital Employed (Equity 9.68b + L.T.Debt 22.2b))
RoIC = 8.55% (NOPAT 3.51b / Invested Capital 41.0b)
WACC = 4.82% (E(86.2b)/V(109b) * Re(5.27%) + D(22.9b)/V(109b) * Rd(3.95%) * (1-Tc(0.21)))
Discount Rate = 5.27% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 61.38 | Cagr: 0.02%
[DCF] Terminal Value 77.97% ; FCFF base≈2.71b ; Y1≈3.11b ; Y5≈4.57b
[DCF] Fair Price = 114.6 (EV 68.8b - Net Debt 22.7b = Equity 46.0b / Shares 401.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 91.15 | EPS CAGR: 10.76% | SUE: 0.66 | # QB: 0
Revenue Correlation: 97.94 | Revenue CAGR: 10.32% | SUE: -0.83 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.99 | Chg30d=+0.08% | Revisions=-23% | Analysts=24
EPS next Quarter (2026-09-30): EPS=2.20 | Chg30d=+0.09% | Revisions=+11% | Analysts=24
EPS current Year (2026-12-31): EPS=8.20 | Chg30d=+0.24% | Revisions=+14% | GrowthEPS=+9.4% | GrowthRev=+5.2%
EPS next Year (2027-12-31): EPS=9.25 | Chg30d=+0.02% | Revisions=-20% | GrowthEPS=+12.7% | GrowthRev=+5.5%
[Analyst] Revisions Ratio: -23%