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WM

Waste ManagementNYSE:WM Stock Report

Last Price

US$156.65

Market Cap

US$65.5b

7D

-1.7%

1Y

36.6%

Updated

17 Jan, 2022

Data

Company Financials +
WM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance4/6
Financial Health2/6
Dividends5/6

WM Stock Overview

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America.

Waste Management Competitors

Republic Services

NYSE:RSG

US$41.2b

Waste Connections

NYSE:WCN

US$32.7b

Stericycle

NasdaqGS:SRCL

US$5.4b

Clean Harbors

NYSE:CLH

US$5.3b

Price History & Performance

Summary of all time highs, changes and price drops for Waste Management
Historical stock prices
Current Share PriceUS$156.65
52 Week HighUS$168.04
52 Week LowUS$109.11
Beta0.83
1 Month Change-2.89%
3 Month Change-1.38%
1 Year Change36.55%
3 Year Change65.82%
5 Year Change125.92%
Change since IPO795.14%

Recent News & Updates

Jan 17
Is Waste Management (NYSE:WM) A Risky Investment?

Is Waste Management (NYSE:WM) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Dec 30

Waste Management: Flourishing Trash Business

Waste Management continued their impressive growth. 3Q revenue grew 21% YoY, and adjusted operating EBITDA grew 14%. They also announced a $1.5B buyback plan along with a 13% increase in dividend. Their cash-generating ability remains exceptional. I expect 10-20% upside from the current level.

Dec 10

Waste Management: Look For A Dip To Buy

WM's stock price grew over 40% during 2021, beating the S&P 500's performance. 2021 is on track to be a record-breaking year in terms of financial performance. Valuation still points to a pricey stock.

Oct 23

Waste Management: Quietly Outperforming The Market

WM has been very quietly outperforming the market over a long time period (10-year total return of 533% by WM compared to 354% by the S&P 500). They are a profitable company with EBITDA margin of 28.79% and net income margin of 9.69%. Both substantially exceed the sector median. They have achieved a steady growth trajectory with 5-year average EBITDA growth at 4.85% and EPS growth at 14.22%. WM has outstanding cash generation, and it just keeps improving ($2.5 B in 2011 to $3.9 B in 2021). I expect 10-30% upside from the current price level.

Shareholder Returns

WMUS Commercial ServicesUS Market
7D-1.7%-1.1%-0.3%
1Y36.6%16.2%13.7%

Return vs Industry: WM exceeded the US Commercial Services industry which returned 16.2% over the past year.

Return vs Market: WM exceeded the US Market which returned 13.7% over the past year.

Price Volatility

Is WM's price volatile compared to industry and market?
WM volatility
WM Average Weekly Movement2.7%
Commercial Services Industry Average Movement6.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
198748,250Jim Fishhttps://www.wm.com

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns, develops, and operates landfill gas-to-energy facilities in the United States, as well as owns and operates transfer stations. As of December 31, 2020, the company owned or operated 263 solid waste landfills; 5 secure hazardous waste landfills; 103 MRFs; and 348 transfer stations.

Waste Management Fundamentals Summary

How do Waste Management's earnings and revenue compare to its market cap?
WM fundamental statistics
Market CapUS$65.53b
Earnings (TTM)US$1.75b
Revenue (TTM)US$17.32b

37.5x

P/E Ratio

3.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WM income statement (TTM)
RevenueUS$17.32b
Cost of RevenueUS$10.66b
Gross ProfitUS$6.66b
ExpensesUS$4.92b
EarningsUS$1.75b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 02, 2022

Earnings per share (EPS)4.18
Gross Margin38.48%
Net Profit Margin10.09%
Debt/Equity Ratio173.6%

How did WM perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

55%

Payout Ratio

Valuation

Is Waste Management undervalued compared to its fair value and its price relative to the market?

3.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WM ($156.65) is trading below our estimate of fair value ($162.86)

Significantly Below Fair Value: WM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WM is poor value based on its PE Ratio (37.5x) compared to the US Commercial Services industry average (26.4x).

PE vs Market: WM is poor value based on its PE Ratio (37.5x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: WM is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: WM is overvalued based on its PB Ratio (9.1x) compared to the US Commercial Services industry average (2.1x).


Future Growth

How is Waste Management forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WM's forecast earnings growth (16.2% per year) is above the savings rate (2%).

Earnings vs Market: WM's earnings (16.2% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: WM's earnings are forecast to grow, but not significantly.

Revenue vs Market: WM's revenue (5.2% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: WM's revenue (5.2% 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 (32.2%)


Past Performance

How has Waste Management performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WM has high quality earnings.

Growing Profit Margin: WM's current net profit margins (10.1%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: WM's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: WM's earnings growth over the past year (16.1%) exceeds its 5-year average (2.8% per year).

Earnings vs Industry: WM earnings growth over the past year (16.1%) underperformed the Commercial Services industry 35.3%.


Return on Equity

High ROE: Whilst WM's Return on Equity (24.38%) 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 ($3.2B) do not cover its short term liabilities ($4.1B).

Long Term Liabilities: WM's short term assets ($3.2B) do not cover its long term liabilities ($17.6B).


Debt to Equity History and Analysis

Debt Level: WM's net debt to equity ratio (172%) is considered high.

Reducing Debt: WM's debt to equity ratio has increased from 172.1% to 173.6% over the past 5 years.

Debt Coverage: WM's debt is well covered by operating cash flow (32.9%).

Interest Coverage: WM's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet


Dividend

What is Waste Management current dividend yield, its reliability and sustainability?

1.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WM's dividend (1.47%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: WM's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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 (54.8%), 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 (38.2% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Commercial Services industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Jim Fish (59 yo)

5.5yrs

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 ($USD12.37M) is about average for companies of similar size in the US market ($USD11.18M).

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 (4.2 years average tenure).


Board Members

Experienced Board: WM's board of directors are considered experienced (6.3 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 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
  • Implied Market Cap: US$65.529b
  • Shares outstanding: 418.32m
  • Website: https://www.wm.com

Number of Employees


Location

  • Waste Management, Inc.
  • 800 Capitol Street
  • Suite 3000
  • Houston
  • Texas
  • 77002
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:40
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.