Waste Management (WM) AI Stock Analysis

• Market Cap: $91.39B
• Dividend Yield: 1.48%
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 0.21
• Revenue Growth: 10.77%
• EPS Growth: 8.38%
• Country: US
• Employees: 61,700
• Sector: Industrials
• Sector Strength: 86
• Industry: Waste Management
• EPS (TTM): 1.67
• Shares Outstanding: 402,408,000
• 10 Day Avg. Volume: 1,955,166
• 30 Day Avg. Volume: 1,580,327
• PEG Ratio: -13.03
• Price to Book (P/B): 10.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.00
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 13.60
• Enterprise Value/Ebitda: 4.58
• 1Y Price Target: $255.37
• Price Target Upside: 12.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 72 Outperform
• Price Target: $254.00 ▲(11.85%Upside)

Waste Management's overall stock score reflects strong earnings performance and strategic initiatives, supported by effective management and sustainability focus. However, high valuation and mixed technical signals temper the outlook, necessitating careful monitoring of market conditions and financial health.

Positive Factors

Digital Investments

Digital investments are adding to Waste Management's competitive moat, improving operations, safety performance, and customer experience.

Industry Positioning

Confidence in Waste Management's ability to benefit from positive long-term demand trends in the healthcare sector is increasing.

Market Share and Pricing

Initiatives to grow market share, improve pricing, and streamline cost structure are expected to drive margin improvement and earnings growth over the intermediate to long term.

Negative Factors

Commodity Volatility

Commodity volatility, such as RINs and OCC, continues to be a concern, affecting WM's sustainability story.

Financial Performance

Waste Management's FCF growth not exceeding EBITDA due to ITC credits and bonus depreciation highlights potential challenges in financial performance.

Revenue Concerns

Given unexpected impact from weather in 1Q25, and recently declining commodity prices that are expected to impact brokerage revenue in 2Q25, analysts remain conservative in revenue estimates.

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 (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 strong financial performance with robust revenue and profit growth, supported by healthy margins and a stable financial structure. However, attention to debt management and capital expenditure is advised to sustain cash flow health.

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
EBITDA	6.60B	6.42B	5.59B	5.47B	4.96B	4.15B
Net Income	2.67B	2.75B	2.30B	2.24B	1.82B	1.50B
Balance Sheet
Total Assets	44.49B	44.57B	32.82B	31.37B	29.10B	29.34B
Cash, Cash Equivalents and Short-Term Investments	216.00M	414.00M	458.00M	351.00M	118.00M	553.00M
Total Debt	23.84B	23.90B	16.23B	14.98B	13.40B	13.81B
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: Negative
• Last Price: 227.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WM, the sentiment is Negative. The current price of 227.1 is below the 20-day moving average (MA) of 232.24, below the 50-day MA of 232.15, and above the 200-day MA of 220.41, indicating a neutral trend. The MACD of -1.89 indicates Positive momentum. The RSI at 41.64 is Neutral, neither overbought nor oversold. The STOCH value of 24.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WM.

Waste Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLH	77 Outperform	$12.34B	31.91	16.02%	―	8.52%	4.51%
WM	72 Outperform	$91.39B	34.25	34.01%	1.48%	10.77%	8.38%
CWST	72 Outperform	$7.20B	517.10	1.00%	―	21.63%	-30.27%
RSG	70 Outperform	$74.28B	35.84	18.54%	0.98%	6.13%	16.45%
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%

Waste Management Corporate Events

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.

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 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.