Waste Management
Market Cap
US$56.8b
Last Updated
2021/04/11 22:20 UTC
Data Sources
Company Financials +
Executive Summary
Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with limited growth.
Similar Companies
Share Price & News
How has Waste Management's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: WM's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
4.2%
WM
2.8%
US Commercial Services
2.1%
US Market
1 Year Return
34.9%
WM
44.9%
US Commercial Services
56.3%
US Market
Return vs Industry: WM underperformed the US Commercial Services industry which returned 44.9% over the past year.
Return vs Market: WM underperformed the US Market which returned 56.3% over the past year.
Shareholder returns
| WM | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.2% | 2.8% | 2.1% |
| 30 Day | 10.6% | 4.9% | 2.4% |
| 90 Day | 15.1% | 4.5% | 6.1% |
| 1 Year | 37.5%34.9% | 46.8%44.9% | 59.1%56.3% |
| 3 Year | 71.8%62.1% | 58.6%48.0% | 65.7%55.1% |
| 5 Year | 162.8%136.7% | 123.7%100.6% | 122.3%97.6% |
Long-Term Price Volatility Vs. Market
How volatile is Waste Management's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Are Institutions Heavily Invested In Waste Management, Inc.'s (NYSE:WM) Shares?3 weeks ago | Simply Wall St
Should You Buy Waste Management, Inc. (NYSE:WM) For Its Dividend?1 month ago | Simply Wall St
Read This Before Considering Waste Management, Inc. (NYSE:WM) For Its Upcoming US$0.57 DividendValuation
Is Waste Management undervalued compared to its fair value and its price relative to the market?
38.08x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WM ($134.68) is trading above our estimate of fair value ($123.8)
Significantly Below Fair Value: WM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WM is poor value based on its PE Ratio (38.1x) compared to the US Commercial Services industry average (35.1x).
PE vs Market: WM is poor value based on its PE Ratio (38.1x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: WM is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: WM is overvalued based on its PB Ratio (7.6x) compared to the US Commercial Services industry average (2.6x).
Future Growth
How is Waste Management forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
15.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WM's forecast earnings growth (15.7% per year) is above the savings rate (2%).
Earnings vs Market: WM's earnings (15.7% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: WM's earnings are forecast to grow, but not significantly.
Revenue vs Market: WM's revenue (6.2% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: WM's revenue (6.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WM's Return on Equity is forecast to be high in 3 years time (28.6%)
Past Performance
How has Waste Management performed over the past 5 years?
9.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WM has high quality earnings.
Growing Profit Margin: WM's current net profit margins (9.8%) are lower than last year (10.8%).
Past Earnings Growth Analysis
Earnings Trend: WM's earnings have grown by 9.1% per year over the past 5 years.
Accelerating Growth: WM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WM had negative earnings growth (-10.4%) over the past year, making it difficult to compare to the Commercial Services industry average (-12.1%).
Return on Equity
High ROE: Whilst WM's Return on Equity (20.07%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Waste Management's financial position?
Financial Position Analysis
Short Term Liabilities: WM's short term assets ($3.5B) do not cover its short term liabilities ($3.6B).
Long Term Liabilities: WM's short term assets ($3.5B) do not cover its long term liabilities ($18.3B).
Debt to Equity History and Analysis
Debt Level: WM's debt to equity ratio (180.4%) is considered high.
Reducing Debt: WM's debt to equity ratio has increased from 166.7% to 180.4% over the past 5 years.
Debt Coverage: WM's debt is well covered by operating cash flow (25.3%).
Interest Coverage: WM's interest payments on its debt are well covered by EBIT (6.2x coverage).
Balance Sheet
Dividend
What is Waste Management current dividend yield, its reliability and sustainability?
1.71%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WM's dividend (1.71%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: WM's dividend (1.71%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: WM's dividends per share have been stable in the past 10 years.
Growing Dividend: WM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (61.6%), WM's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WM's dividends in 3 years are forecast to be well covered by earnings (42.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Jim Fish (58 yo)
4.42yrs
Tenure
US$12,373,925
Compensation
Mr. James C. Fish, Jr., also known as Jim, has been the Chief Executive Officer of Waste Management, Inc. since November 11, 2016 and as has been its President since July 27, 2016. Mr. Fish served as Execu...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD12.37M) is about average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: WM's management team is considered experienced (3.5 years average tenure).
Board Members
Experienced Board: WM's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Waste Management, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Waste Management, Inc.
- Ticker: WM
- Exchange: NYSE
- Founded: 1987
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Market Cap: US$56.840b
- Shares outstanding: 422.04m
- Website: https://www.wm.com
Number of Employees
Location
- Waste Management, Inc.
- 800 Capitol Street
- Houston
- Texas
- 77002
- United States
Listings
Biography
Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It offers collection ser...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/11 22:20 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.