Waste Management (WM) AI Stock Analysis

• Market Cap: $91.10B
• Dividend Yield: 1.39%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 33.6
• Beta (1Y): 0.22
• Revenue Growth: 14.18%
• EPS Growth: 7.02%
• Country: US
• Employees: 61,700
• Sector: Industrials
• Sector Strength: 78
• Industry: Waste Management
• EPS (TTM): 1.92
• Shares Outstanding: 402,830,320
• 10 Day Avg. Volume: 1,412,304
• 30 Day Avg. Volume: 1,529,636
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 4.85
• Enterprise Value/Gross Profit: 16.73
• Enterprise Value/Ebitda: 16.77
• 1Y Price Target: $258.25
• Price Target Upside: 13.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 70 Outperform
• Price Target: $253.00 ▲(11.55% Upside)

Waste Management's strong financial performance is the most significant factor, supported by effective operational management and cash flow generation. However, the high valuation and mixed technical indicators present some risks. The company's strategic initiatives and leadership changes are positive, but challenges in the recycling segment and contract losses need monitoring.

Positive Factors

Earnings

Waste Management reported a better-than-expected Q2 performance, demonstrating strong execution across the board.

Financial Performance

The company showed a significant improvement in cash flow from operations, up 34% year over year, reflecting effective management.

Market Position

Shares remain attractive at the lowest valuation of the peer group with over 20% stock upside potential.

Negative Factors

Market Perception

The analyst reiterates a Neutral rating on Waste Management, citing a preference for a peer due to balanced views on risk and market volatility.

Valuation Concerns

Part of the valuation discount for Waste Management is due to the perception of 'too many moving pieces' compared to its peers.

Waste Management Business Overview & Revenue Model

Company Description

Waste Management (WM) is the leading provider of integrated waste management services in North America. The company operates in several sectors, including collection, transfer, recycling, and disposal of waste. WM offers a comprehensive range of services that cater to residential, commercial, industrial, and municipal customers, with a strong emphasis on sustainability and environmental stewardship through its various recycling and waste-to-energy programs.

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: Negative
• Last Price: 226.81
• 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 226.81 is below the 20-day moving average (MA) of 230.40, below the 50-day MA of 230.32, and above the 200-day MA of 223.78, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 25.50 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	78 Outperform	$13.25B	34.15	14.93%	―	5.49%	-1.66%
RSG	75 Outperform	$72.59B	34.37	18.41%	1.00%	5.13%	13.29%
MEG	71 Outperform	$990.84M	―	-7.61%	―	17.78%	2.57%
WM	70 Outperform	$91.10B	33.56	32.67%	1.39%	14.18%	7.02%
Sector *	59 Neutral	AU$1.63B	11.13	-5.90%	3.58%	9.76%	6.86%
CWST	57 Neutral	$6.26B	549.45	0.85%	―	20.35%	-45.38%
NVRI	49 Neutral	$812.93M	―	-35.66%	―	-0.83%	-61.90%

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.