Waste Management (WM) AI Stock Analysis

• Market Cap: $87.77B
• Dividend Yield: 1.54%
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 0.12
• Revenue Growth: 15.88%
• EPS Growth: -3.11%
• Country: US
• Employees: 61,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 1.98
• Shares Outstanding: 402,867,070
• 10 Day Avg. Volume: 2,097,352
• 30 Day Avg. Volume: 2,165,771
• 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: 1.28
• Enterprise Value/Revenue: 4.54
• Enterprise Value/Gross Profit: 15.68
• Enterprise Value/Ebitda: 16.22
• 1Y Price Target: $247.20
• Price Target Upside: 13.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 7.51
• Revenue Forecast (FY): $25.29B

• Rating: 76 Outperform
• Price Target: $245.00 ▲(12.45% Upside)

Waste Management's strong financial performance and positive earnings call outlook are the most significant factors driving the stock score. While technical indicators show mixed signals, the company's high valuation tempers the overall score. The absence of notable corporate events keeps the focus on financial and operational strengths.

Positive Factors

Strong Operating EBITDA Growth

The significant growth in operating EBITDA and free cash flow indicates robust operational performance and financial health, supporting long-term growth initiatives.

Collection and Disposal Business Performance

The growth in MSW and special waste volumes highlights Waste Management's strong market position and ability to drive revenue from core operations, ensuring sustainable growth.

Recycling Segment Growth

The recycling segment's EBITDA growth despite price declines shows resilience and adaptability, enhancing long-term sustainability and environmental stewardship.

Negative Factors

High Leverage

High leverage could pose risks if market conditions change, potentially impacting financial flexibility and increasing vulnerability to economic downturns.

Healthcare Solutions Revenue Challenges

Slower revenue growth in Healthcare Solutions may hinder overall growth prospects, requiring strategic adjustments to improve performance in this segment.

Natura PCR Plant Temporary Closure

The temporary closure of the Natura PCR plant indicates potential operational disruptions and regulatory challenges, affecting long-term strategic goals in recycling.

Waste Management Business Overview & Revenue Model

Company Description

Waste Management, Inc. (WM) is the leading provider of comprehensive waste management services in North America. The company operates through various segments, including collection, transfer, disposal, and recycling of solid waste, as well as the treatment and disposal of hazardous waste. WM serves residential, commercial, industrial, and municipal customers, offering a wide range of services such as curbside collection, landfill operations, recycling programs, and sustainability consulting, positioning itself as a key player in the environmental services sector.

How the Company Makes Money

Waste Management generates revenue primarily through its core services, which include waste collection, disposal fees, and recycling operations. The collection segment involves charging customers for regularly scheduled pickups of trash and recyclables, while the disposal segment earns revenue from tipping fees charged to customers who deposit waste at landfills. Recycling operations also provide income through the sale of recovered materials. Additionally, WM benefits from long-term contracts with municipalities and commercial customers, which ensure consistent cash flow. The company further enhances its earnings through partnerships with local governments and businesses to provide customized waste management solutions. Factors contributing to its financial performance include increasing demand for sustainable waste disposal methods, regulatory support for recycling initiatives, and the ongoing trend towards environmental responsibility among consumers and corporations.

Waste Management Financial Statement Overview

Summary

Waste Management demonstrates solid financial health with consistent revenue growth and strong profitability metrics. The company effectively manages its debt levels, although high leverage remains a potential risk. Cash flow generation is robust, supporting ongoing operations and growth initiatives.

Income Statement

Waste Management has demonstrated consistent revenue growth, with a TTM revenue growth rate of 3.48% and a strong gross profit margin of 28.97%. The net profit margin is healthy at 11.36%, indicating efficient cost management. However, the slight decline in EBIT margin from 18.38% in 2024 to 17.57% in TTM suggests some pressure on operational efficiency.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 2.61, showing a slight improvement from 3.02 in 2024. Return on equity remains robust at 31.93%, reflecting strong profitability. However, the high leverage indicates potential risk if market conditions change unfavorably.

Cash Flow

Operating cash flow is strong, with a TTM operating cash flow to net income ratio of 0.97, indicating good cash generation relative to earnings. Free cash flow growth is positive at 11.05%, showing improvement from previous periods. However, the free cash flow to net income ratio of 0.38 suggests room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.78B	22.06B	20.43B	19.70B	17.93B	15.22B
Gross Profit	7.17B	6.41B	5.75B	5.37B	4.82B	4.21B
EBITDA	6.93B	6.46B	5.72B	5.45B	4.82B	4.09B
Net Income	2.56B	2.75B	2.30B	2.24B	1.82B	1.50B
Balance Sheet
Total Assets	45.61B	44.57B	32.82B	31.37B	29.10B	29.34B
Cash, Cash Equivalents and Short-Term Investments	175.00M	414.00M	458.00M	351.00M	118.00M	553.00M
Total Debt	23.36B	23.90B	16.23B	14.98B	13.40B	13.81B
Total Liabilities	36.09B	36.31B	25.93B	24.50B	21.97B	21.89B
Stockholders Equity	9.52B	8.25B	6.90B	6.85B	7.12B	7.45B
Cash Flow
Free Cash Flow	2.40B	2.16B	1.82B	1.95B	2.43B	1.77B
Operating Cash Flow	5.86B	5.39B	4.72B	4.54B	4.34B	3.40B
Investing Cash Flow	-10.46B	-10.60B	-3.09B	-3.06B	-1.89B	-4.85B
Financing Cash Flow	4.23B	5.16B	-1.52B	-1.22B	-2.90B	-1.56B

Waste Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 217.87
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 217.87 is above the 20-day moving average (MA) of 207.61, above the 50-day MA of 212.38, and below the 200-day MA of 223.81, indicating a neutral trend. The MACD of 1.86 indicates Negative momentum. The RSI at 61.55 is Neutral, neither overbought nor oversold. The STOCH value of 91.02 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
WM	76 Outperform	$87.77B	34.33	29.31%	1.54%	15.88%	-3.11%
CLH	70 Outperform	$12.16B	31.57	14.64%	―	2.85%	-6.27%
RSG	65 Neutral	$67.19B	32.26	18.24%	1.06%	4.33%	7.59%
MEG	65 Neutral	$906.41M	―	-4.17%	―	22.77%	44.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CWST	61 Neutral	$6.12B	401.79	0.98%	―	20.54%	106.35%
NVRI	55 Neutral	$1.48B	―	-38.53%	―	-2.91%	-67.18%

Waste Management Corporate Events

WM Reports Strong Q3 2025 Earnings with Sustainability Focus

WM, formerly known as Waste Management, is North America’s leading provider of comprehensive environmental solutions, offering services such as waste collection, recycling, and disposal to residential, commercial, industrial, and municipal customers across the U.S. and Canada.

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.

The most recent analyst rating on (WM) stock is a Hold with a $249.00 price target. To see the full list of analyst forecasts on Waste Management stock, see the WM Stock Forecast page.

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.

The most recent analyst rating on (WM) stock is a Buy with a $256.00 price target. To see the full list of analyst forecasts on Waste Management stock, see the WM Stock Forecast page.

WM Reports Strong Q2 2025 Earnings and Sustainability Progress

WM, formerly known as Waste Management, is North America’s leading provider of comprehensive environmental solutions, offering services such as waste collection, recycling, and disposal to a wide range of customers across the U.S. and Canada. The company is recognized for its innovative infrastructure and capabilities in recycling, organics, and renewable energy.

Waste Management’s Earnings Call Highlights Strong Growth

Waste Management’s recent earnings call painted a picture of strong operational performance, marked by significant growth in EBITDA and cash flow improvements. The company benefited from robust landfill volume and the successful integration of recent acquisitions. However, the positive sentiment was tempered by challenges such as declining recycled commodity prices and the loss of a major contract.