Waste Management
Market Cap
US$50.8b
Last Updated
2020/01/20 23:53 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.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: WM has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.7%
WM
2.4%
US Commercial Services
1.7%
US Market
1 Year Return
26.7%
WM
23.1%
US Commercial Services
23.6%
US Market
Return vs Industry: WM exceeded the US Commercial Services industry which returned 23.7% over the past year.
Return vs Market: WM exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| WM | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 2.4% | 1.7% |
| 30 Day | 5.7% | 3.7% | 3.5% |
| 90 Day | 2.3% | 4.3% | 11.7% |
| 1 Year | 29.0%26.7% | 27.6%23.1% | 26.2%23.6% |
| 3 Year | 83.6%72.6% | 66.5%55.5% | 53.2%43.3% |
| 5 Year | 153.0%124.9% | 108.0%86.8% | 75.5%56.1% |
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
4 days ago | Simply Wall St
If You Had Bought Waste Management (NYSE:WM) Shares Five Years Ago You'd Have Made 124%1 month ago | Simply Wall St
Why Waste Management, Inc. (NYSE:WM) Is A Top Dividend Stock1 month ago | Simply Wall St
There's A Lot To Like About Waste Management, Inc.'s (NYSE:WM) Upcoming US$0.51 DividendValuation
Is Waste Management undervalued compared to its fair value and its price relative to the market?
28.98x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WM ($118.07) is trading below our estimate of fair value ($125.23)
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 (28.6x) compared to the Commercial Services industry average (26.4x).
PE vs Market: WM is poor value based on its PE Ratio (28.6x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: WM is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: WM is overvalued based on its PB Ratio (7.4x) compared to the US Commercial Services industry average (2.1x).
Next Steps
Future Growth
How is Waste Management forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
10.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WM's forecast earnings growth (10.6% per year) is above the savings rate (1.7%).
Earnings vs Market: WM's earnings (10.6% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: WM's earnings are forecast to grow, but not significantly.
Revenue vs Market: WM's revenue (5.5% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: WM's revenue (5.5% 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 (27.8%)
Next Steps
Past Performance
How has Waste Management performed over the past 5 years?
20.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WM has high quality earnings.
Growing Profit Margin: WM's current net profit margins (11.4%) are lower than last year (15.6%).
Past Earnings Growth Analysis
Earnings Trend: WM's earnings have grown significantly by 20.6% 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 (-23.6%) over the past year, making it difficult to compare to the Commercial Services industry average (-1.3%).
Return on Equity
High ROE: Whilst WM's Return on Equity (25.86%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Waste Management's financial position?
Financial Position Analysis
Short Term Liabilities: WM's short term assets ($5.6B) exceed its short term liabilities ($3.0B).
Long Term Liabilities: WM's short term assets ($5.6B) do not cover its long term liabilities ($17.3B).
Debt to Equity History and Analysis
Debt Level: WM's debt to equity ratio (192%) is considered high.
Reducing Debt: WM's debt to equity ratio has increased from 179.3% to 192% over the past 5 years.
Debt Coverage: WM's debt is well covered by operating cash flow (28.9%).
Interest Coverage: WM's interest payments on its debt are well covered by EBIT (7x 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?
1.71%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: WM's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: WM's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 reasonably low payout ratio (48.5%), 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 (45.5% 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?
2.3yrs
Average management tenure
CEO
Jim Fish (57yo)
3.2yrs
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 ($USD10.76M).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.3yrs
Average Tenure
46yo
Average Age
Experienced Management: WM's management team is considered experienced (2.3 years average tenure).
Board Age and Tenure
5.0yrs
Average Tenure
61yo
Average Age
Experienced Board: WM's board of directors are considered experienced (5 years average tenure).
Insider Trading
Insider Buying: WM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive Senior VP & Chief Customer Officer |
| Shares | 1,000 |
| Max Price | US$112.00 |
| Entity | Individual |
| Role | Senior Key Executive Senior VP & Chief Customer Officer |
| Shares | 700 |
| Max Price | US$104.55 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Jim Fish (57yo)
President
- Tenure: 3.2yrs
- Compensation: US$9.13m
Chuck Boettcher (45yo)
Senior VP & Chief Legal Officer
- Tenure: 3yrs
John Morris (49yo)
Executive VP & COO
- Tenure: 1yrs
- Compensation: US$3.19m
Tara Hemmer (46yo)
Senior Vice President of Operations
- Tenure: 7.8yrs
Devina Rankin (43yo)
Senior VP & CFO
- Tenure: 2.9yrs
- Compensation: US$2.85m
Leslie Nagy (45yo)
VP & Chief Accounting Officer
- Tenure: 2.2yrs
Tamla Oates-Forney (47yo)
Senior VP & Chief Human Resources Officer
- Tenure: 1.1yrs
Ed Egl
Director of Investor Relations
Nikolaj Sjoqvist (46yo)
Senior VP & Chief Digital Officer
- Tenure: 2.3yrs
Michael Watson (49yo)
Senior VP & Chief Customer Officer
- Tenure: 1.3yrs
Board Members
Pat Gross (74yo)
Independent Director
- Tenure: 13.6yrs
- Compensation: US$289.95k
Frank Clark (73yo)
Independent Director
- Tenure: 17.3yrs
- Compensation: US$284.95k
Tom Weidemeyer (71yo)
Non-Executive Chairman
- Tenure: 1.8yrs
- Compensation: US$405.84k
Vicki Holt (61yo)
Independent Director
- Tenure: 7yrs
- Compensation: US$264.95k
Bill Plummer (60yo)
Independent Director
- Tenure: 0.4yrs
Jack Pope (70yo)
Independent Director
- Tenure: 23yrs
- Compensation: US$264.95k
Jim Fish (57yo)
President
- Tenure: 3.2yrs
- Compensation: US$9.13m
Andrés Ricardo Gluski Weilert (61yo)
Independent Director
- Tenure: 5yrs
- Compensation: US$264.95k
Kathleen Mazzarella (59yo)
Independent Director
- Tenure: 4.3yrs
- 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$50.760b
- Shares outstanding: 424.24m
- Website: https://www.wm.com
Number of Employees
Location
- Waste Management, Inc.
- 1001 Fannin Street
- Suite 4000
- Houston
- Texas
- 77002
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WM | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 1988 |
| UWS | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1988 |
| 0LTG | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jun 1988 |
| WM | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jun 1988 |
| UWS | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jun 1988 |
| W1MC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 2 COM | BR | BRL | Dec 2019 |
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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/20 23:53 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.