Waste Management (WM) AI Stock Analysis

• Market Cap: $88.09B
• Dividend Yield: 1.47%
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.20
• Revenue Growth: 14.18%
• EPS Growth: 7.02%
• Country: US
• Employees: 61,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 1.92
• Shares Outstanding: 402,830,320
• 10 Day Avg. Volume: 1,623,371
• 30 Day Avg. Volume: 1,624,466
• PEG Ratio: 1.46
• Price to Book (P/B): 9.82
• Price to Sales (P/S): 3.67
• P/FCF Ratio: 37.53
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 4.85
• Enterprise Value/Gross Profit: 16.73
• Enterprise Value/Ebitda: 16.77
• 1Y Price Target: $259.54
• Price Target Upside: 18.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 69 Neutral
• Price Target: $249.00 ▲(13.86% Upside)

Waste Management's overall stock score is driven by its strong financial performance and positive earnings call sentiment. However, technical indicators and valuation suggest caution, as the stock may be overvalued and facing short-term technical challenges. The company's strategic initiatives and sustainable growth focus provide a positive outlook, but investors should be mindful of potential risks.

Positive Factors

Sustainability Platform Success

The growth in recycling EBITDA despite price declines underscores WM's strong sustainability investments, enhancing long-term revenue potential.

Strong Financial Health

Consistent financial performance with low debt levels positions WM well for sustainable growth and resilience against economic fluctuations.

Leadership Transition

The appointment of a new CFO with a strong finance background supports strategic objectives and ensures continuity in financial leadership.

Negative Factors

Recycled Commodity Price Decline

Declining recycled commodity prices can pressure revenue, challenging WM's profitability in its recycling segment over the medium term.

Franchise Contract Loss

Losing a major contract impacts volume and revenue, highlighting potential vulnerabilities in maintaining customer relationships.

Revenue Guidance Reduction

Lower revenue guidance reflects challenges in market conditions and operational hurdles, potentially affecting investor confidence.

Waste Management Business Overview & Revenue Model

Company Description

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It offers 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, 2021, the company owned or operated 255 solid waste landfills; 5 secure hazardous waste landfills; 96 MRFs; and 340 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. 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.

How the Company Makes Money

Waste Management generates revenue primarily through its collection and disposal services, which include fees charged for residential and commercial waste collection, landfill operations, and recycling services. The company operates a network of landfills, transfer stations, and recycling facilities, allowing it to charge tipping fees for waste that is deposited at its landfills. Additionally, WM earns revenue from its waste-to-energy operations, where it converts waste into renewable energy, and from the sale of recyclable materials. Key partnerships with local governments and municipalities, as well as contracts with large commercial clients, also contribute significantly to its earnings. The company's focus on increasing recycling rates and developing sustainable waste management solutions enhances its revenue potential in an increasingly eco-conscious market.

Waste Management Financial Statement Overview

Summary

Waste Management demonstrates solid financial health with consistent revenue and profit growth, strong operational efficiency, and effective cash flow management. The company maintains a balanced equity structure with low debt levels, positioning it well for future growth.

Income Statement

Waste Management shows a strong financial performance with consistent revenue growth and robust profit margins. The Gross Profit Margin for TTM is 39.7%, and the Net Profit Margin is 11.4%. Revenue has been growing steadily, with a TTM Revenue Growth Rate of 8.5% compared to the previous year. EBIT and EBITDA margins are healthy at 17.5% and 24.7%, respectively, indicating efficient operational management.

Balance Sheet

The company's balance sheet is stable, with a manageable Debt-to-Equity Ratio of 0.10 in TTM, reflecting conservative financial leverage. Return on Equity is strong at 29.6%, showing effective use of shareholder funds. The Equity Ratio is 20.1%, indicating a balanced approach to financing with both debt and equity.

Cash Flow

Cash flow performance is strong with positive Free Cash Flow growth, up by 0.19% in TTM. The Operating Cash Flow to Net Income Ratio is 2.07, indicating a high conversion of income into cash. The Free Cash Flow to Net Income Ratio is 0.79, suggesting that a substantial portion of income is available as free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.95B	22.06B	20.43B	19.70B	17.93B	15.22B
Gross Profit	6.94B	6.41B	5.75B	5.37B	4.82B	4.21B
EBITDA	6.92B	6.46B	5.72B	5.45B	4.82B	4.09B
Net Income	2.72B	2.75B	2.30B	2.24B	1.82B	1.50B
Balance Sheet
Total Assets	45.72B	44.57B	32.82B	31.37B	29.10B	29.34B
Cash, Cash Equivalents and Short-Term Investments	440.00M	414.00M	458.00M	351.00M	118.00M	553.00M
Total Debt	24.02B	23.90B	16.23B	14.98B	13.40B	13.81B
Total Liabilities	36.52B	36.31B	25.93B	24.50B	21.97B	21.89B
Stockholders Equity	9.20B	8.25B	6.90B	6.85B	7.12B	7.45B
Cash Flow
Free Cash Flow	2.16B	2.16B	1.82B	1.95B	2.43B	1.77B
Operating Cash Flow	5.62B	5.39B	4.72B	4.54B	4.34B	3.40B
Investing Cash Flow	-10.16B	-10.60B	-3.09B	-3.06B	-1.89B	-4.85B
Financing Cash Flow	4.84B	5.16B	-1.52B	-1.22B	-2.90B	-1.56B

Waste Management Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 218.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WM, the sentiment is Neutral. The current price of 218.69 is below the 20-day moving average (MA) of 218.86, below the 50-day MA of 224.51, and below the 200-day MA of 223.38, indicating a bearish trend. The MACD of -2.04 indicates Negative momentum. The RSI at 46.13 is Neutral, neither overbought nor oversold. The STOCH value of 62.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WM.

Waste Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSG	73 Outperform	$71.25B	33.73	17.62%	1.02%	5.13%	13.29%
CLH	72 Outperform	$12.44B	32.57	14.18%	―	5.49%	-1.66%
MEG	70 Outperform	$978.49M	-17.98	-7.89%	―	17.78%	2.57%
WM	69 Neutral	$88.09B	32.22	32.67%	1.47%	14.18%	7.02%
CWST	57 Neutral	$5.69B	495.46	0.71%	―	20.35%	-45.38%
NVRI	56 Neutral	$988.74M	-6.26	-41.84%	―	-0.83%	-61.90%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Waste Management Corporate Events

Waste Management Approves $2.1M Retention Award for Executive

On August 21, 2025, Waste Management, Inc.’s Board of Directors approved a $2.1 million retention award of restricted stock units (RSUs) to Tara J. Hemmer, the Senior Vice President and Chief Sustainability Officer. This award aims to retain key leadership and aligns with the company’s sustainability goals, potentially impacting its strategic positioning and stakeholder interests.

Waste Management Announces CFO Resignation and Successor

On August 21, 2025, WM announced the resignation of Devina Rankin, its Executive Vice President and Chief Financial Officer, effective November 1, 2025. Rankin, who has been with the company for nearly 23 years, will focus on education and not-for-profit service after her departure. David Reed, currently Vice President and Business Partner for WM’s West Tier operations, will succeed her as CFO. Reed’s extensive background in finance and leadership positions him well to support WM’s long-term growth strategy. His appointment includes an increase in base salary and a grant of restricted stock units, reflecting confidence in his ability to contribute to the company’s strategic objectives.

Waste Management Hosts 2025 Investor Day at NYSE

On June 24, 2025, Waste Management, now known as WM, hosted its 2025 Investor Day at the New York Stock Exchange. The event, which included presentations and Q&A sessions with senior leadership, focused on the company’s long-term vision and growth strategies. CEO Jim Fish emphasized WM’s commitment to a people-first culture and its plans to leverage its asset network for sustainable growth, aiming to provide lasting value for shareholders.