Waste Management Inc
Exchange: NYSESector: IndustrialsIndustry: Waste Management
Waste Management, based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America. Through its subsidiaries, the Company provides collection, transfer, disposal services, and recycling and resource recovery. It is also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States. The Company’s customers include residential, commercial, industrial, and municipal customers throughout North America.
Did you know?
Pays a 1.48% dividend yield.
Current Price
$223.93
+0.23%GoodMoat Value
$160.36
28.4% overvaluedProfile
Valuation (TTM)
Market Cap$90.21B
P/E33.31
EV$114.37B
P/B9.03
Shares Out402.87M
P/Sales3.58
Revenue$25.20B
EV/EBITDA15.68
Waste Management Inc (WM) Stock Analysis
GoodMoat Analysis
Waste Management Inc is a high-quality business with a durable competitive moat, driven by its massive scale and regulatory barriers in the essential waste collection industry. However, its current valuation appears significantly elevated relative to its growth and our fair value estimate, presenting a narrow margin of safety.
Read full analysis
Waste Management Inc (WM) is the leading provider of comprehensive waste management and environmental services in North America, operating a vast network of collection routes, transfer stations, and landfills. Applying the GoodMoat framework, the company demonstrates a strong competitive moat, scoring highly on criteria such as Scale Privilege (massive physical infrastructure), Regulatory Barriers (difficult-to-obtain landfill permits), and Strategic Partnerships with municipalities. Its asset-heavy model creates significant barriers to entry. The business also shows high quality, with a robust ROE of 27.1% and a solid operating margin of 17.1%. However, the valuation assessment is unfavourable. The current P/E of 33.5x is high for a company with 7.1% YoY revenue growth, and the stock price of $224.99 is well above the GoodMoat Target of $160.36. This suggests a negative margin of safety. Following the Decision Framework, WM passes the Moat & Quality Gate but fails the Valuation & Risk Gate. The combination of high valuation multiples, a low FCF yield of 3.1%, and elevated debt (Debt/Equity of 2.29) indicates the stock is priced for perfection. For a value investor, this makes the current price point unattractive, though the underlying business is worthy of monitoring for a more compelling entry point. Analysis based on data as of 2024-05-15.
Market Cap$90.21B
Current Price$223.93
P/E Ratio33.31
Forward P/E—
PEG Ratio1.42
EPS$6.70
Book Value$24.80
P/B Ratio9.03
WM Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 5.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 22.7B
Revenue
15.5B
FY19
15.2B
FY20
17.9B
FY21
19.7B
FY22
20.4B
FY23
22.1B
FY24
25.2B
FY25
Net Income
1.7B
FY19
1.5B
FY20
1.8B
FY21
2.2B
FY22
2.3B
FY23
2.7B
FY24
2.7B
FY25
WM 52-Week Range
$195.24
$245.54
50-Day MA: $232.32200-Day MA: $221.58
Did you know?
Price sits at 57% of its 52-week range.
Waste Management Inc (WM) Financial Summary
Waste Management Inc (WM) is a Industrials company in the Waste Management industry, listed on NYSE. The stock currently trades at $223.93 with a market capitalization of $90.21B.
Key valuation metrics include a P/E ratio of 33.31, price-to-book ratio of 9.03, and EPS of $6.70. The company reports a profit margin of 10.7% and return on equity of 27.1%.
WM Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $90.21B |
| P/E Ratio | 33.31 |
| EPS | $6.70 |
| P/B Ratio | 9.03 |
| P/S Ratio | 3.58 |
| EV/EBITDA | 15.68 |
| Dividend Yield | 1.48% |
| Profit Margin | 10.7% |
| Return on Equity | 27.1% |
| Debt/Equity | 2.29 |
WM Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $15.46B | $1.67B |
| FY20 | $15.22B | $1.50B |
| FY21 | $17.93B | $1.82B |
| FY22 | $19.70B | $2.24B |
| FY23 | $20.43B | $2.30B |
| FY24 | $22.06B | $2.75B |
| FY25 | $25.20B | $2.71B |
Waste Management Inc (WM) Valuation
Based on GoodMoat's DCF model, Waste Management Inc has a fair value estimate of $160.36. At the current price of $223.93, the stock appears 39.6% overvalued relative to our intrinsic value estimate.
WM Quality Indicators
Waste Management Inc maintains a profit margin of 10.7% and an operating margin of 17.1%. Return on equity stands at 27.1%. The current ratio is 0.89. Debt-to-equity ratio is 2.29.
About Waste Management Inc
Waste Management, based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America. Through its subsidiaries, the Company provides collection, transfer, disposal services, and recycling and resource recovery. It is also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States. The Company’s customers include residential, commercial, industrial, and municipal customers throughout North America.
WM Free Cash Flow
Waste Management Inc generated $2.82B in trailing twelve-month free cash flow, representing an FCF yield of 3.12%. This moderate FCF yield indicates reasonable cash generation.
WM Shares Outstanding
Waste Management Inc has 0.40 billion shares outstanding at a share price of $223.93, giving it a market capitalization of $90.21B.
WM Recent Insider Trades
Recent insider transactions at Waste Management Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Reed David L. (EVP & CFO) | SELL | 75 | $18394.50 |
| Morris John J (President & COO) | SELL | 4,211 | $1.02M |
| Varkey Johnson (SVP-Chief Information Officer) | SELL | 121 | $29677.42 |