Waste Management (WM) AI Stock Analysis

• Market Cap: $95.29B
• Dividend Yield: 1.3%
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.25
• Revenue Growth: 10.77%
• EPS Growth: 8.38%
• Country: US
• Employees: 61,700
• Sector: Industrials
• Sector Strength: 92
• Industry: Waste Management
• EPS (TTM): 1.67
• Shares Outstanding: 402,408,000
• 10 Day Avg. Volume: 1,957,090
• 30 Day Avg. Volume: 1,766,481
• PEG Ratio: -13.28
• Price to Book (P/B): 10.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.99
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 11.01
• Enterprise Value/Ebitda: 3.70
• 1Y Price Target: $254.06
• Price Target Upside: 7.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 77 Outperform
• Price Target: $261.00 ▲( 10.21% Upside)

Waste Management's strong financial performance and strategic focus on sustainability and cost management are key strengths. While technical analysis suggests a neutral outlook and the stock's valuation is high, the positive earnings call and corporate events reinforce confidence. High debt levels and integration challenges warrant cautious monitoring.

Positive Factors

Guidance Achievability

WM remains confident in the '25 guidance due to a strong special waste pipeline and continued wildfire benefit.

M&A Prospects

WM is executing well and the increased visibility and confidence in its near-term M&A prospects are encouraging.

Recycling Automation

Recycling projects remain on track, with automated facilities generating double the margin of legacy facilities and boosting consolidated margins by 20 basis points.

Negative Factors

Commodity Values

The SID division was challenged by reduced commodity values and less event-driven work.

Revenue and Cash Flow

Revenues were light and free cash flow was significantly below expectations.

Startup Costs

Startup costs on new RNG projects were a drag on margins.

Waste Management Business Overview & Revenue Model

Company Description

Waste Management (WM) is a leading provider of comprehensive waste management environmental services in North America. The company operates in various sectors, including collection, transfer, recycling, resource recovery, and disposal services. WM's core services encompass solid waste collection, recycling, and landfill operations, serving municipalities, residential, commercial, and industrial customers across the United States and Canada.

How the Company Makes Money

Waste Management (WM) generates revenue primarily through its waste collection, recycling services, and disposal operations. Key revenue streams include fees from collecting waste from residential, commercial, and industrial clients, tipping fees from disposing of waste at landfills, and revenue from selling recyclable materials. WM also earns money from its transfer stations, which consolidate waste before it is transported to disposal sites. Significant partnerships with municipalities and businesses, along with long-term contracts, contribute to stable and predictable earnings. Additionally, WM invests in renewable energy projects, such as landfill gas-to-energy initiatives, which provide supplementary revenue and align with sustainability goals.

Waste Management Financial Statement Overview

Summary

Waste Management exhibits a solid financial profile with strong revenue growth and profitability. The company's balance sheet is stable, though attention to debt levels is advisable. Cash flows remain strong, supporting future growth initiatives. While the company is performing well, maintaining operational efficiency and managing leverage will be key to sustaining this trajectory.

Income Statement

Waste Management has demonstrated a strong performance in its income statement with consistent revenue and profit growth. The TTM revenue shows an impressive increase, indicating robust business momentum. Gross Profit Margin and Net Profit Margin remain healthy, reflecting operational efficiency and profitability. The EBIT and EBITDA margins also indicate strong operational performance. However, slight fluctuations in net income suggest potential volatility in earnings.

Balance Sheet

The balance sheet reveals a stable financial structure with a reasonable Debt-to-Equity Ratio, indicating a balanced approach to leverage. The Return on Equity is commendable, showcasing effective management of shareholder funds. The Equity Ratio suggests a moderate level of equity financing, which is typical for the industry. Nonetheless, the high level of total debt may pose risks if not managed properly.

Cash Flow

Cash flow analysis shows a strong operating cash flow, which comfortably covers net income, indicating good cash generation ability. The Free Cash Flow remains positive, supporting potential reinvestment and shareholder returns. However, the decrease in Free Cash Flow in the TTM period compared to the previous year suggests a need for cautious capital expenditure management to maintain cash flow health.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.92B	22.06B	20.43B	19.70B	17.93B	15.22B
	Gross Profit
8.49B	8.68B	7.82B	7.40B	6.82B	5.88B
	EBIT
4.12B	4.06B	3.58B	3.37B	2.96B	2.43B
	EBITDA
6.60B	6.42B	5.59B	5.47B	4.96B	4.15B
	Net Income Common Stockholders
2.67B	2.75B	2.30B	2.24B	1.82B	1.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
216.00M	414.00M	458.00M	351.00M	118.00M	553.00M
	Total Assets
44.49B	44.57B	32.82B	31.37B	29.10B	29.34B
	Total Debt
23.84B	23.90B	16.23B	14.98B	13.40B	13.81B
	Net Debt
23.62B	23.49B	15.77B	14.63B	13.29B	13.26B
	Total Liabilities
35.84B	36.31B	25.93B	24.50B	21.97B	21.89B
	Stockholders Equity
8.65B	8.25B	6.90B	6.85B	7.12B	7.45B
Cash Flow		Free Cash Flow
1.84B	2.16B	1.82B	1.95B	2.43B	1.77B
	Operating Cash Flow
5.23B	5.39B	4.72B	4.54B	4.34B	3.40B
	Investing Cash Flow
-10.68B	-10.60B	-3.09B	-3.06B	-1.89B	-4.85B
	Financing Cash Flow
5.36B	5.16B	-1.52B	-1.22B	-2.90B	-1.56B

Waste Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 236.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WM, the sentiment is Positive. The current price of 236.81 is above the 20-day moving average (MA) of 231.36, above the 50-day MA of 229.40, and above the 200-day MA of 217.23, indicating a bullish trend. The MACD of 1.17 indicates Negative momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 91.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WM.

Waste Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLH	78 Outperform	$12.14B	31.38	16.02%	―	8.52%	4.51%
WM	77 Outperform	$95.29B	35.72	34.01%	1.30%	10.77%	8.38%
RSG	76 Outperform	$79.02B	38.12	18.54%	0.90%	6.13%	16.45%
CWST	68 Neutral	$7.34B	527.36	1.00%	―	21.63%	-30.27%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.39%	3.96%	-12.36%

Waste Management Corporate Events

Waste Management Promotes John Morris to President

On May 14, 2025, Waste Management, Inc. announced the promotion of John J. Morris, Jr. to the position of President, while he continues as Chief Operating Officer, following the voluntary resignation of James C. Fish, Jr. from the role of President. This leadership change is part of WM’s ‘People First’ strategy, emphasizing leadership development and operational excellence. Morris, with over 30 years in the industry, is expected to advance WM’s strategy and enhance shareholder value, reflecting the company’s commitment to environmental leadership and workforce development.

The most recent analyst rating on (WM) stock is a Hold with a $214.00 price target. To see the full list of analyst forecasts on Waste Management stock, see the WM Stock Forecast page.

Waste Management Elects New Board at Annual Meeting

At the Annual Meeting of Stockholders held on May 13, 2025, Waste Management, Inc. announced the election of nine director nominees to its Board of Directors, with all nominees successfully elected. Additionally, stockholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the company’s executive compensation plan. These decisions reflect strong shareholder support and are expected to reinforce the company’s governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (WM) stock is a Hold with a $214.00 price target. To see the full list of analyst forecasts on Waste Management stock, see the WM Stock Forecast page.

Waste Management Grants Executive Incentive Awards for 2025

On February 25, 2025, Waste Management, Inc. granted annual incentive awards to its executive officers, including performance share units (PSUs) and stock options under the 2023 Stock Incentive Plan. The PSUs are linked to cash flow generation and total shareholder return relative to the S&P 500, with payouts ranging from 0 to 200% of the target amount. Stock options have a 10-year term and vest over three years. Additionally, annual cash incentive awards were granted, based on performance measures like operating EBITDA and internal revenue growth, with potential adjustments for sustainability scores and individual performance. These incentives aim to align executive compensation with company performance and shareholder value, impacting the company’s operational focus and stakeholder interests.