Waste Management (WM) AI Stock Analysis

• Market Cap: $92.80B
• Dividend Yield: 1.37%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.21
• Revenue Growth: 10.77%
• EPS Growth: 8.38%
• Country: US
• Employees: 61,700
• Sector: Industrials
• Sector Strength: 94
• Industry: Waste Management
• EPS (TTM): 1.67
• Shares Outstanding: 402,408,000
• 10 Day Avg. Volume: 1,454,189
• 30 Day Avg. Volume: 1,564,109
• PEG Ratio: -13.13
• Price to Book (P/B): 10.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.38
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 2.22
• Enterprise Value/Gross Profit: 24.37
• Enterprise Value/Ebitda: 9.58
• 1Y Price Target: $254.89
• Price Target Upside: 10.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 76 Outperform
• Price Target: $258.00 ▲(12.34%Upside)

Waste Management's overall stock score reflects strong financial performance and a positive outlook from the recent earnings call. However, mixed technical signals and a high valuation dampen the score. The company's strategic focus on sustainability and growth initiatives positions it well for future success, but careful management of debt and integration challenges will be crucial.

Positive Factors

Digital Investments

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

Earnings Growth

Presentations by management reinforced the strong outlook for earnings and free cash flow growth.

Market Opportunities

The long-term strategy highlights WM's focus on leveraging an un-replicable asset network to drive incremental opportunities.

Negative Factors

Commodity Volatility

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

Financial Challenges

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

Revenue Uncertainty

Given unexpected impact from weather and recently declining commodity prices, 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 has demonstrated strong financial performance with robust revenue and profit growth. The income statement shows impressive growth, though slight fluctuations in net income suggest potential volatility. The balance sheet is stable with a reasonable debt-to-equity ratio, but high total debt levels warrant caution. Strong operating cash flow supports future growth, though a decrease in free cash flow suggests careful capital management is needed.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.06B	20.43B	19.70B	17.93B	15.22B
Gross Profit	8.68B	7.82B	7.40B	6.82B	5.88B
EBITDA	6.42B	5.59B	5.47B	4.96B	4.15B
Net Income	2.75B	2.30B	2.24B	1.82B	1.50B
Balance Sheet
Total Assets	44.57B	32.82B	31.37B	29.10B	29.34B
Cash, Cash Equivalents and Short-Term Investments	414.00M	458.00M	351.00M	118.00M	553.00M
Total Debt	23.90B	16.23B	14.98B	13.40B	13.81B
Total Liabilities	36.31B	25.93B	24.50B	21.97B	21.89B
Stockholders Equity	8.25B	6.90B	6.85B	7.12B	7.45B
Cash Flow
Free Cash Flow	2.16B	1.82B	1.95B	2.43B	1.77B
Operating Cash Flow	5.39B	4.72B	4.54B	4.34B	3.40B
Investing Cash Flow	-10.60B	-3.09B	-3.06B	-1.89B	-4.85B
Financing Cash Flow	5.16B	-1.52B	-1.22B	-2.90B	-1.56B

Waste Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 229.67
• 50DMA: Negative
• 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 229.67 is above the 20-day moving average (MA) of 227.02, below the 50-day MA of 231.24, and above the 200-day MA of 222.11, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 84.08 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	$12.37B	31.99	16.02%	―	8.52%	4.51%
WM	76 Outperform	$92.80B	34.41	34.01%	1.37%	10.77%	8.38%
RSG	74 Outperform	$76.60B	36.68	18.54%	0.95%	6.13%	16.45%
CWST	72 Outperform	$6.90B	496.08	1.00%	―	21.63%	-30.27%
MEG	68 Neutral	$791.08M	―	-14.32%	―	10.92%	-57.13%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
NVRI	56 Neutral	$754.26M	―	-26.25%	―	5.42%	-29.97%

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.