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Waste Management Inc WM

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Stock XNYS Rating as of
$210.10 −2.60 (1.22%)
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As of Delayed Price Closed
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Company Report

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Waste Management Earnings: We Expect Continued Profitability Improvement in 2024

Brian Bernard,

Wide-moat-rated Waste Management reported mixed first-quarter results, as reported revenue growth came in slightly below the FactSet consensus estimate, but adjusted EPS handily exceeded the consensus estimate. Additionally, management slightly reduced sales guidance for fiscal 2024 because of certain headwinds unrelated to the core business and increased full-year guidance with respect to profitability. As a result, we expect to modestly increase our fair value estimate, as we believe improved profitability offsets slower near-term sales growth.

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Price vs Fair Value

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WM is trading at a 31% premium.
Price
$207.53
Fair Value
$452.00
Uncertainty
Low
1-Star Price
$852.12
5-Star Price
$754.70
Economic Moat
Vjm
Capital Allocation
Wmhfpybx

Bulls Say, Bears Say

Bulls

WM has a stable business model and enjoys a wide economic moat rooted in intangible assets (regulatory permits for landfills) and cost advantages (route density).

Bears

It is becoming increasingly difficult to find quality tuck-in acquisitions that move the needle for WM, which opens up the temptation to overspend on a large, complex and/or noncore transactions.

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Trading Information

Previous Close Price
$212.70
Day Range
$209.41–213.25
52-Week Range
$149.71–214.54
Bid/Ask
$208.20 / $210.59
Market Cap
$84.31 Bil
Volume/Avg
1.7 Mil / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
31.69
Price/Sales
4.12
Dividend Yield (Trailing)
1.34%
Dividend Yield (Forward)
1.41%
Total Yield
2.78%

Company Profile

WM ranks as the largest integrated provider of traditional solid waste services in the United States, operating 259 active landfills and about 337 transfer stations. The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.
Sector
Industrials
Industry
Waste Management
Stock Style Box
Large Core
Total Number of Employees
48,000
Website
https://www.wm.com

Competitors

Valuation

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Metric
WM
SRCL
RSG
Price/Earnings (Normalized)
 31.6923.7534.27
Price/Book Value
 11.911.705.73
Price/Sales
 4.121.624.06
Price/Cash Flow
 16.4414.9716.92
Price/Earnings
WM
SRCL
RSG

Financial Strength

Metric
WM
SRCL
RSG
Quick Ratio
 0.790.990.50
Current Ratio
 0.901.110.56
Interest Coverage
 7.041.065.30
Quick Ratio
WM
SRCL
RSG

Profitability

Metric
WM
SRCL
RSG
Return on Assets (Normalized)
 7.92%1.06%5.94%
Return on Equity (Normalized)
 36.61%2.26%17.51%
Return on Invested Capital (Normalized)
 12.95%2.61%9.64%
Return on Assets
WM
SRCL
RSG
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Waste Management Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
RSG
Republic Services IncKskpnprpWhzd$60.4 Bil
WCN
Waste Connections IncZjbczjszqNykb$42.9 Bil
VEOEF
Veolia Environnement SA—Bbbq$22.3 Bil
VEOEY
Veolia Environnement SA ADRCwlyqsnzFqtp$22.3 Bil
GFL
GFL Environmental Inc—Hcszh$12.1 Bil
CLH
Clean Harbors IncFrwvwrwTfpjkyz$10.6 Bil
FMOCY
Fomento de Construcciones y Contratas SA ADR—Bhm$5.9 Bil
CWST
Casella Waste Systems Inc Class A—Kfjcgp$5.5 Bil
SRCL
Stericycle IncYjfksvzmPbgdmxp$4.7 Bil

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