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 mediocre balance sheet.


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

-2.7%

NYSE:WM

-3.2%

US Commercial Services

-1.9%

US Market


1 Year Return

27.8%

NYSE:WM

2.3%

US Commercial Services

-3.3%

US Market

WM outperformed the Commercial Services industry which returned 2.3% over the past year.

WM outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

WMIndustryMarket
7 Day-2.7%-3.2%-1.9%
30 Day-2.2%-4.7%-6.2%
90 Day6.9%0.3%0.3%
1 Year30.4%27.8%6.2%2.3%-1.1%-3.3%
3 Year93.5%81.2%59.3%48.5%37.9%28.9%
5 Year179.6%146.8%90.2%71.1%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Waste Management's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Waste Management's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Waste Management is poor value based on expected growth next year.


Price Based on Value of Assets

Waste Management is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

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

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Waste Management's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

Waste Management's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

Waste Management's revenue growth is positive but not above the United States of America market average.

Waste Management's earnings growth is positive but not above the United States of America market average.

Waste Management's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Waste Management is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

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.


Return on Equity

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.


Return on Assets

Waste Management used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Waste Management's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Waste Management's financial position?


Financial Position Analysis

Waste Management is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Waste Management's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Waste Management's level of debt (191.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (159.6% vs 191.9% today).

Debt is well covered by operating cash flow (29.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.84%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Waste Management's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Waste Management's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

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

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Jim Fish (57yo)

2.8yrs

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

Jim's remuneration is about average for companies of similar size in United States of America.

Jim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

46yo

Average Age

The average tenure for the Waste Management management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.6yrs

Average Tenure

61yo

Average Age

The tenure for the Waste Management board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 2.8yrs
    • Compensation: US$9.13m
  • Chuck Boettcher (45yo)

    Senior VP & Chief Legal Officer

    • Tenure: 2.6yrs
  • John Morris (49yo)

    Executive VP & COO

    • Tenure: 0.6yrs
    • Compensation: US$3.19m
  • Tara Hemmer (46yo)

    Senior Vice President of Operations

    • Tenure: 7.4yrs
  • Devina Rankin (43yo)

    Senior VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$2.85m
  • Leslie Nagy (45yo)

    VP & Chief Accounting Officer

    • Tenure: 1.8yrs
  • Tamla Oates-Forney (47yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.7yrs
  • Ed Egl

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Nikolaj Sjoqvist (46yo)

    Senior VP & Chief Digital Officer

    • Tenure: 1.8yrs
  • Michael Watson (49yo)

    Senior VP & Chief Customer Officer

    • Tenure: 0.8yrs

Board Members

  • Pat Gross (74yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$289.95k
  • Frank Clark (73yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$284.95k
  • Tom Weidemeyer (71yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: US$405.84k
  • Vicki Holt (61yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$264.95k
  • Bill Plummer (60yo)

    Director

    • Tenure: 0.0yrs
  • Jack Pope (70yo)

    Independent Director

    • Tenure: 22.6yrs
    • Compensation: US$264.95k
  • Jim Fish (57yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$9.13m
  • Andrés Ricardo Gluski Weilert (61yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$264.95k
  • Kathleen Mazzarella (59yo)

    Independent Director

    • Tenure: 3.8yrs
    • 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$49.181b
  • 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 Analysis2019/08/25 23:44
End of Day Share Price2019/08/23 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.