NYSE:WM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with moderate growth potential.


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


Market Performance


7 Day Return

0.6%

WM

1.7%

US Commercial Services

0.4%

US Market


1 Year Return

29.4%

WM

18.4%

US Commercial Services

6.9%

US Market

Return vs Industry: WM exceeded the US Commercial Services industry which returned 18.4% over the past year.

Return vs Market: WM exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

WMIndustryMarket
7 Day0.6%1.7%0.4%
30 Day1.5%3.1%-1.1%
90 Day-0.07%2.9%-0.5%
1 Year31.9%29.4%22.9%18.4%9.3%6.9%
3 Year100.5%88.2%73.8%61.9%45.8%36.4%
5 Year175.5%144.1%103.9%83.4%62.9%45.1%

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

Valuation

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

12.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WM ($117.05) is trading below our estimate of fair value ($133.63)

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 (28.3x) compared to the Commercial Services industry average (25.5x).

PE vs Market: WM is poor value based on its PE Ratio (28.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: WM is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: WM is overvalued based on its PB Ratio (7.7x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is Waste Management forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WM's forecast earnings growth (11% per year) is above the savings rate (2.7%).

Earnings vs Market: WM's earnings (11% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: WM's revenue (7.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: WM's revenue (7.7% 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 (27.6%)


Next Steps

Past Performance

How has Waste Management performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WM's earnings have grown significantly by 25.4% 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 (-19.5%) over the past year, making it difficult to compare to the Commercial Services industry average (-2.4%).


Return on Equity

High ROE: Whilst WM's Return on Equity (27.18%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: WM has a higher Return on Assets than the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: WM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Waste Management's financial position?


Financial Position Analysis

Short Term Liabilities: WM's short term assets ($4.8B) exceeds its short term liabilities ($2.8B)

Long Term Liabilities: WM's short term assets (4.8B) do not cover its long term liabilities (16.7B)


Debt to Equity History and Analysis

Debt Level: WM's debt to equity ratio (191.9%) is considered high

Reducing Debt: WM's debt to equity ratio has increased from 159.6% to 191.9% over the past 5 years.

Debt Coverage: WM's debt is well covered by operating cash flow (29.7%).

Interest Coverage: WM's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet

Inventory Level: WM has a high level of physical assets or inventory.

Debt Coverage by Assets: WM's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

1.75%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WM's dividend (1.75%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WM's dividend (1.75%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 reasonably low payout ratio (47.3%), WM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WM's dividends in 3 years are forecast to be well covered by earnings (44.6% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Jim Fish (57yo)

2.9yrs

Tenure

US$9,125,281

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 ($USD9.13M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

46yo

Average Age

Experienced Management: WM's management team is considered experienced (2 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

61yo

Average Age

Experienced Board: WM's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$73,18209 May 19
Michael Watson
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Customer Officer
Shares700
Max PriceUS$104.55
SellUS$2,205,01708 Nov 18
Jeff Harris
EntityIndividual
Shares24,500
Max PriceUS$90.00

Ownership Breakdown


Management Team

  • Jim Fish (57yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$9.13m
  • Chuck Boettcher (45yo)

    Senior VP & Chief Legal Officer

    • Tenure: 2.8yrs
  • John Morris (49yo)

    Executive VP & COO

    • Tenure: 0.8yrs
    • Compensation: US$3.19m
  • Tara Hemmer (46yo)

    Senior Vice President of Operations

    • Tenure: 7.6yrs
  • Devina Rankin (43yo)

    Senior VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$2.85m
  • Leslie Nagy (45yo)

    VP & Chief Accounting Officer

    • Tenure: 1.9yrs
  • Tamla Oates-Forney (47yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Ed Egl

    Director of Investor Relations

    • Tenure: 0yrs
  • Nikolaj Sjoqvist (46yo)

    Senior VP & Chief Digital Officer

    • Tenure: 2yrs
  • Michael Watson (49yo)

    Senior VP & Chief Customer Officer

    • Tenure: 1yrs

Board Members

  • Pat Gross (74yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$289.95k
  • Frank Clark (73yo)

    Independent Director

    • Tenure: 17yrs
    • Compensation: US$284.95k
  • Tom Weidemeyer (71yo)

    Non-Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: US$405.84k
  • Vicki Holt (61yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$264.95k
  • Bill Plummer (60yo)

    Independent Director

    • Tenure: 0.2yrs
  • Jack Pope (70yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$264.95k
  • Jim Fish (57yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$9.13m
  • Andrés Ricardo Gluski Weilert (61yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$264.95k
  • Kathleen Mazzarella (59yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$274.95k

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$49.656b
  • Shares outstanding: 424.23m
  • Website: https://www.wm.com

Number of Employees


Location

  • Waste Management, Inc.
  • 1001 Fannin Street
  • Suite 4000
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1988
UWSDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1988
0LTGLSE (London Stock Exchange)YesCommon StockGBUSDJun 1988
WMWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1988

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:45
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.