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Waste Management

NYSE:WM
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WM
NYSE
$46B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. The last earnings update was 29 days ago. More info.


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WM Share Price and Events
7 Day Returns
0.3%
NYSE:WM
0.1%
US Commercial Services
-2.1%
US Market
1 Year Returns
30.7%
NYSE:WM
12.8%
US Commercial Services
1.3%
US Market
WM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Waste Management (WM) 0.3% 2.2% 8.7% 30.7% 76.8% 142.7%
US Commercial Services 0.1% 0.3% 5.4% 12.8% 50% 72.2%
US Market -2.1% -4.2% 0% 1.3% 33.5% 38%
1 Year Return vs Industry and Market
  • WM outperformed the Commercial Services industry which returned 12.8% over the past year.
  • WM outperformed the Market in United States of America which returned 1.3% over the past year.
Price Volatility
WM
Industry
5yr Volatility vs Market

WM Value

 Is Waste Management undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Waste Management to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Waste Management.

NYSE:WM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.718 (1 + (1- 21%) (23.35%))
0.9
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.9 * 5.96%)
8.09%

Discounted Cash Flow Calculation for NYSE:WM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Waste Management is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:WM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.09%)
2019 2,022.70 Analyst x7 1,871.29
2020 2,188.14 Analyst x5 1,872.81
2021 2,326.17 Est @ 6.31% 1,841.91
2022 2,447.94 Est @ 5.23% 1,793.23
2023 2,557.68 Est @ 4.48% 1,733.38
2024 2,658.90 Est @ 3.96% 1,667.08
2025 2,754.33 Est @ 3.59% 1,597.64
2026 2,846.09 Est @ 3.33% 1,527.29
2027 2,935.77 Est @ 3.15% 1,457.48
2028 3,024.56 Est @ 3.02% 1,389.17
Present value of next 10 years cash flows $16,751.28
NYSE:WM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3,024.56 × (1 + 2.73%) ÷ (8.09% – 2.73%)
$57,954.55
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $57,954.55 ÷ (1 + 8.09%)10
$26,618.23
NYSE:WM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $16,751.28 + $26,618.23
$43,369.51
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $43,369.51 / 424.68
$102.12
NYSE:WM Discount to Share Price
Calculation Result
Value per share (USD) From above. $102.12
Current discount Discount to share price of $108.43
= -1 x ($108.43 - $102.12) / $102.12
-6.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Waste Management is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Waste Management's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Waste Management's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.39
NYSE:WM Share Price ** NYSE (2019-05-24) in USD $108.43
United States of America Commercial Services Industry PE Ratio Median Figure of 48 Publicly-Listed Commercial Services Companies 22.6x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Waste Management.

NYSE:WM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WM Share Price ÷ EPS (both in USD)

= 108.43 ÷ 4.39

24.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Waste Management is overvalued based on earnings compared to the US Commercial Services industry average.
  • Waste Management is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Waste Management's expected growth come at a high price?
Raw Data
NYSE:WM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
7.2%per year
United States of America Commercial Services Industry PEG Ratio Median Figure of 34 Publicly-Listed Commercial Services Companies 1.73x
United States of America Market PEG Ratio Median Figure of 2,120 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

NYSE:WM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.67x ÷ 7.2%

3.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Waste Management is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Waste Management's assets?
Raw Data
NYSE:WM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $15.10
NYSE:WM Share Price * NYSE (2019-05-24) in USD $108.43
United States of America Commercial Services Industry PB Ratio Median Figure of 88 Publicly-Listed Commercial Services Companies 1.88x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
NYSE:WM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WM Share Price ÷ Book Value per Share (both in USD)

= 108.43 ÷ 15.10

7.18x

* Primary Listing of Waste Management.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Waste Management is overvalued based on assets compared to the US Commercial Services industry average.
X
Value checks
We assess Waste Management's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Waste Management has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WM Future Performance

 How is Waste Management expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Waste Management expected to grow at an attractive rate?
  • Waste Management's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Waste Management's earnings growth is positive but not above the United States of America market average.
  • Waste Management's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 7.2%
NYSE:WM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 4.6%
United States of America Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 14.9%
United States of America Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 18,886 1
2022-12-31 18,113 1
2021-12-31 17,128 2,121 4
2020-12-31 16,294 3,858 1,978 11
2019-12-31 15,642 3,697 1,797 12
NYSE:WM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 15,099 3,651 1,876
2018-12-31 14,914 3,570 1,925
2018-09-30 14,724 3,450 2,297
2018-06-30 14,618 3,429 2,184
2018-03-31 14,556 3,267 2,047
2017-12-31 14,485 3,180 1,949
2017-09-30 14,293 3,142 1,381
2017-06-30 14,125 3,047 1,297
2017-03-31 13,873 2,996 1,222
2016-12-31 13,609 3,003 1,182
2016-09-30 13,395 2,778 1,120
2016-06-30 13,207 2,677 1,153

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Waste Management's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
  • Waste Management's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Waste Management Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 5.19 5.19 5.19 1.00
2020-12-31 4.70 4.79 4.57 7.00
2019-12-31 4.21 4.35 4.11 7.00
NYSE:WM Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.39
2018-12-31 4.49
2018-09-30 5.33
2018-06-30 5.03
2018-03-31 4.69
2017-12-31 4.44
2017-09-30 3.14
2017-06-30 2.94
2017-03-31 2.76
2016-12-31 2.67
2016-09-30 2.52
2016-06-30 2.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Waste Management is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Waste Management's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Waste Management has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WM Past Performance

  How has Waste Management performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Waste Management's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Waste Management has delivered over 20% year on year earnings growth in the past 5 years.
  • Waste Management's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Waste Management's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.
Earnings and Revenue History
Waste Management's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Waste Management Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 15,099.00 1,876.00 1,489.00
2018-12-31 14,914.00 1,925.00 1,453.00
2018-09-30 14,724.00 2,297.00 1,452.00
2018-06-30 14,618.00 2,184.00 1,463.00
2018-03-31 14,556.00 2,047.00 1,451.00
2017-12-31 14,485.00 1,949.00 1,468.00
2017-09-30 14,293.00 1,381.00 1,477.00
2017-06-30 14,125.00 1,297.00 1,451.00
2017-03-31 13,873.00 1,222.00 1,438.00
2016-12-31 13,609.00 1,182.00 1,410.00
2016-09-30 13,395.00 1,120.00 1,375.00
2016-06-30 13,207.00 1,153.00 1,375.00
2016-03-31 13,097.00 1,140.00 1,357.00
2015-12-31 12,961.00 753.00 1,343.00
2015-09-30 13,152.00 1,070.00 1,345.00
2015-06-30 13,394.00 1,005.00 1,392.00
2015-03-31 13,640.00 941.00 1,423.00
2014-12-31 13,996.00 1,298.00 1,481.00
2014-09-30 14,059.00 103.00 1,481.00
2014-06-30 14,078.00 124.00 1,453.00
2014-03-31 14,043.00 158.00 1,453.00
2013-12-31 13,983.00 98.00 1,468.00
2013-09-30 13,917.00 927.00 1,448.00
2013-06-30 13,757.00 850.00 1,434.00
2013-03-31 13,690.00 814.00 1,455.00
2012-12-31 13,649.00 817.00 1,472.00
2012-09-30 13,621.00 859.00 1,498.00
2012-06-30 13,682.00 917.00 1,543.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Waste Management has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Waste Management used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.
  • Waste Management has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Waste Management's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Waste Management has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WM Health

 How is Waste Management's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Waste Management's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Waste Management's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Waste Management's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Waste Management's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Waste Management Company Filings, last reported 1 month ago.

NYSE:WM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 6,417.00 10,754.00 57.00
2018-12-31 6,276.00 10,026.00 61.00
2018-09-30 6,241.00 10,016.00 83.00
2018-06-30 6,056.00 9,796.00 47.00
2018-03-31 6,065.00 9,957.00 52.00
2017-12-31 6,042.00 9,491.00 22.00
2017-09-30 5,300.00 9,345.00 35.00
2017-06-30 5,507.00 9,057.00 32.00
2017-03-31 5,538.00 9,042.00 30.00
2016-12-31 5,320.00 9,310.00 32.00
2016-09-30 5,383.00 9,261.00 30.00
2016-06-30 5,228.00 9,530.00 39.00
2016-03-31 5,310.00 9,596.00 104.00
2015-12-31 5,367.00 8,929.00 39.00
2015-09-30 5,257.00 9,050.00 113.00
2015-06-30 5,407.00 9,106.00 273.00
2015-03-31 5,575.00 9,207.00 277.00
2014-12-31 5,889.00 9,435.00 1,307.00
2014-09-30 5,663.00 10,164.00 183.00
2014-06-30 6,147.00 9,797.00 137.00
2014-03-31 6,039.00 10,194.00 339.00
2013-12-31 6,002.00 10,254.00 235.00
2013-09-30 7,015.00 10,090.00 157.00
2013-06-30 6,818.00 9,800.00 154.00
2013-03-31 6,716.00 10,049.00 307.00
2012-12-31 6,675.00 9,958.00 194.00
2012-09-30 6,612.00 10,034.00 398.00
2012-06-30 6,487.00 9,925.00 237.00
  • Waste Management's level of debt (167.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (168.7% vs 167.6% today).
  • Debt is well covered by operating cash flow (34%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Waste Management's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Waste Management has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WM Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.89%
Current annual income from Waste Management dividends. Estimated to be 2.02% next year.
If you bought $2,000 of Waste Management shares you are expected to receive $38 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Waste Management's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Waste Management's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Upcoming dividend payment

Purchase Waste Management before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 3.21 1.00
2022-12-31 2.87 1.00
2021-12-31 2.26 4.00
2020-12-31 2.15 10.00
2019-12-31 2.03 10.00
NYSE:WM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-14 2.050 1.893
2018-12-13 2.050 2.085
2018-11-12 1.860 2.026
2018-10-25 1.860 2.111
2018-05-14 1.860 2.142
2017-12-14 1.860 2.191
2017-11-06 1.700 2.065
2017-08-25 1.700 2.178
2017-05-12 1.700 2.301
2016-12-15 1.700 2.371
2016-11-10 1.640 2.363
2016-08-25 1.640 2.583
2016-05-11 1.640 2.549
2016-02-26 1.640 2.820
2016-02-18 1.640 2.932
2015-11-09 1.540 2.903
2015-08-20 1.540 2.991
2015-05-11 1.540 3.134
2015-02-24 1.540 2.898
2015-02-17 1.540 2.830
2014-11-10 1.500 2.957
2014-08-21 1.500 3.168
2014-05-12 1.500 3.369
2014-02-18 1.500 3.586
2013-11-12 1.460 3.340
2013-08-22 1.460 3.488
2013-05-09 1.460 3.516
2012-12-11 1.460 3.967
2012-11-06 1.420 4.394
2012-08-24 1.420 4.314
2012-05-10 1.420 4.274
2011-12-09 1.420 4.142
2011-11-08 1.360 4.386
2011-08-23 1.360 4.220
2011-05-13 1.360 3.867
2010-12-16 1.360 3.627
2010-11-09 1.260 3.585
2010-08-20 1.260 3.576
2010-05-11 1.260 3.813
2010-01-11 1.260 3.734
2009-11-10 1.160 3.490
2009-08-25 1.160 3.846

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Waste Management's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Waste Management's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Waste Management afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Waste Management has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WM Management

 What is the CEO of Waste Management's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Fish
COMPENSATION $9,125,281
AGE 56
TENURE AS CEO 2.5 years
CEO Bio

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 Executive Vice President of Waste Management, Inc. from August 2012 to July 27, 2016, and also served as its Chief Financial Officer since August 2012 until November 18, 2016. He served as Senior Vice President of Eastern Group Operations at Waste Management, Inc. since June 13, 2011 until August 2012. Mr. Fish served as Area Vice President of Pennsylvania and West Virginia Market at Waste Management from 2009 to 2011. He joined Waste Management in 2001 as Director of Financial Planning and Analysis and also served as Vice President of Price Management and was responsible for running its pricing excellence programs. He served as Market Area General Manager — Western Pennsylvania/West Virginia from 2008 to 2009 and Rhode Island/Southern Massachusetts from 2006 to 2008. Mr. Fish held finance or revenue management positions at Westex, a Yellow Corporation subsidiary; Trans World Airlines, Inc. and America West Airlines, Inc. He began his professional career at KPMG Peat Marwick. Mr. Fish has been a Director of Waste Management, Inc. since November 11, 2016. He serves as a Director of Greater Houston Partnership, Inc. He earned a Bachelor of Science degree in accounting from Arizona State University and his MBA in finance from the University of Chicago. Mr. Fish is a Certified Public Accountant.

CEO Compensation
  • Jim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Waste Management management team in years:

1.6
Average Tenure
45
Average Age
  • The average tenure for the Waste Management management team is less than 2 years, this suggests a new team.
Management Team

Jim Fish

TITLE
President
COMPENSATION
$9M
AGE
56
TENURE
2.5 yrs

Devina Rankin

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
42
TENURE
2.3 yrs

John Morris

TITLE
Executive VP & COO
COMPENSATION
$3M
AGE
48
TENURE
0.3 yrs

Leslie Nagy

TITLE
VP & Chief Accounting Officer
AGE
44
TENURE
1.5 yrs

Ed Egl

TITLE
Director of Investor Relations

Chuck Boettcher

TITLE
Senior VP & Chief Legal Officer
AGE
44
TENURE
2.3 yrs

Tamla Oates-Forney

TITLE
Senior VP & Chief Human Resources Officer
AGE
46
TENURE
0.4 yrs

Tara Hemmer

TITLE
Senior Vice President of Operations
AGE
45
TENURE
7.2 yrs

Nikolaj Sjoqvist

TITLE
Senior VP & Chief Digital Officer
AGE
45
TENURE
1.6 yrs

Michael Watson

TITLE
Senior VP & Chief Customer Officer
AGE
48
TENURE
0.6 yrs
Board of Directors Tenure

Average tenure and age of the Waste Management board of directors in years:

5.3
Average Tenure
64.5
Average Age
  • The tenure for the Waste Management board of directors is about average.
Board of Directors

Tom Weidemeyer

TITLE
Non-Executive Chairman
COMPENSATION
$406K
AGE
70
TENURE
1.1 yrs

Jim Fish

TITLE
President
COMPENSATION
$9M
AGE
56
TENURE
2.5 yrs

Frank Clark

TITLE
Independent Director
COMPENSATION
$285K
AGE
72
TENURE
16.6 yrs

Pat Gross

TITLE
Independent Director
COMPENSATION
$290K
AGE
73
TENURE
12.9 yrs

Kathleen Mazzarella

TITLE
Independent Director
COMPENSATION
$275K
AGE
58
TENURE
3.6 yrs

Jack Pope

TITLE
Independent Director
COMPENSATION
$265K
AGE
69
TENURE
22.3 yrs

Vicki Holt

TITLE
Independent Director
COMPENSATION
$265K
AGE
60
TENURE
6.3 yrs

Andrés Ricardo Weilert

TITLE
Independent Director
COMPENSATION
$265K
AGE
60
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • Waste Management insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. May 19 Sell Michael Watson Individual 07. May 19 07. May 19 -700 $104.55 $-73,182
08. Nov 18 Sell Jeff Harris Individual 08. Nov 18 08. Nov 18 -24,500 $90.00 $-2,205,017
X
Management checks
We assess Waste Management's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Waste Management has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WM News

Simply Wall St News

What Kind Of Investor Owns Most Of Waste Management, Inc. (NYSE:WM)?

View our latest analysis for Waste Management NYSE:WM Ownership Summary, May 18th 2019 What Does The Institutional Ownership Tell Us About Waste Management? … We can see that Waste Management does have institutional investors; and they hold 82% of the stock. … Insider Ownership Of Waste Management The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

Does Waste Management, Inc.'s (NYSE:WM) CEO Salary Compare Well With Others?

This analysis aims first to contrast CEO compensation with other large companies. … View our latest analysis for Waste Management … How Does Jim Fish's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What Does Waste Management, Inc.'s (NYSE:WM) P/E Ratio Tell You?

To keep it practical, we'll show how Waste Management, Inc.'s (NYSE:WM) P/E ratio could help you assess the value on offer. … Waste Management has a P/E ratio of 23.68, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Here's What Waste Management, Inc.'s (NYSE:WM) ROCE Can Tell Us

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Did You Miss Waste Management's (NYSE:WM) Impressive 148% Share Price Gain?

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Waste Management achieved compound earnings per share (EPS) growth of 85% per year. … This EPS growth is higher than the 20% average annual increase in the share price.

Simply Wall St -

4 Days Left Until Waste Management, Inc. (NYSE:WM) Trades Ex-Dividend

Have you been keeping an eye on Waste Management, Inc.'s (NYSE:WM) upcoming dividend of US$0.51 per share payable on the 22 March 2019? … Below, I will explain how holding Waste Management can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Has it paid dividend every year without dramatically reducing payout in the past?

Simply Wall St -

Why I Like Waste Management, Inc. (NYSE:WM)

Help shape the future of investing tools and you could win a $250 gift card! … As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Could The Waste Management, Inc. (NYSE:WM) Ownership Structure Tell Us Something Useful?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Waste Management is a pretty big company.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Waste Management, Inc. (NYSE:WM)

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Waste Management has a price to earnings ratio of 17.48, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

How Many Insiders Sold Waste Management, Inc. (NYSE:WM) Shares?

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Waste Management Insider Transactions Over The Last Year. … All up, insiders sold more shares in Waste Management than they bought, over the last year

Simply Wall St -

WM Company Info

Description

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It provides 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, 2018, the company owned or operated 247 solid waste landfills; 5 secure hazardous waste landfills; 102 MRFs; and 314 transfer stations. It also provides materials processing and commodities recycling services; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company offers construction and remediation services; services related with the disposal of fly ash, and residue generated from the combustion of coal and other fuel stocks; in-plant services comprising full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations. Further, it offers fluorescent bulb and universal waste mail-back services through LampTracker program; portable restroom services under the Port-o-Let name; and street and parking lot sweeping services, as well as holds interests in oil and gas producing properties. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is headquartered in Houston, Texas.

Details
Name: Waste Management, Inc.
WM
Exchange: NYSE
Founded: 1987
$46,048,239,224
424,681,723
Website: http://www.wm.com
Address: Waste Management, Inc.
1001 Fannin Street,
Suite 4000,
Houston,
Texas, 77002,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WM Common Stock New York Stock Exchange US USD 03. Jun 1988
DB UWS Common Stock Deutsche Boerse AG DE EUR 03. Jun 1988
LSE 0LTG Common Stock London Stock Exchange GB USD 03. Jun 1988
WBAG WM Common Stock Wiener Boerse AG AT EUR 03. Jun 1988
Number of employees
Current staff
Staff numbers
43,700
Waste Management employees.
Industry
Environmental and Facilities Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 23:48
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/18
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.