Waste Management Inc WM

Morningstar Rating
$201.90 −2.02 (0.99%)
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Company Report

WM's Pricing Power Should Lead to Robust Cash Flow Growth; Increasing FVE to $220

Waste collection and disposal industry leader WM enjoys a leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given the immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which was the fourth-largest player in the industry. In November 2024, WM entered the adjacent medical waste disposal business with its acquisition of Stericycle.

Price vs Fair Value

WM is trading within a range we consider fairly valued.
Price
$201.90
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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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's becoming increasingly difficult to find quality tuck-in acquisitions that move the needle for WM, which opens up the temptation to pay higher multiples for incremental M&A or overspend on large, complex, and noncore transactions.

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Trading Information

Previous Close Price
$203.92
Day Range
$201.44–204.85
52-Week Range
$194.11–248.13
Bid/Ask
$202.10 / $202.89
Shares Outstanding
399.72M
Market Cap
$80.70B
Volume/Avg
3M / 2M

Key Statistics

Price/Earnings (Normalized)
26.09
Price/Sales
3.18
Dividend Yield (Trailing)
1.81%
Dividend Yield (Forward)
1.87%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
3.06%

Company Profile

WM, previously known as Waste Management, ranks as the largest integrated provider of traditional solid waste services in the United States, operating 257 active landfill sites and about 342 transfer stations that help with transporting waste efficiently and economically. The company serves residential, commercial, industrial, and medical end markets for waste collection, transfer, and disposal. The company also has an energy business emanating from the beneficial use of landfill gas and is a leading recycler in North America.
Sector
Industrials
Industry
Waste Management
Stock Style Box
Mid Core
Total Number of Employees
60,500

Competitors

Valuation

Metric
WM
VIE
RSG
Price/Earnings (Normalized)
26.0917.8728.69
Price/Book Value
8.143.135.26
Price/Sales
3.180.473.80
Price/Cash Flow
11.914.3213.35
Price/Earnings
WM
VIE
RSG

Financial Strength

Metric
WM
VIE
RSG
Quick Ratio
0.800.740.58
Current Ratio
0.910.820.64
Interest Coverage
5.003.545.32
Quick Ratio
WM
VIE
RSG

Profitability

Metric
WM
VIE
RSG
Return on Assets (Normalized)
7.34%2.63%6.53%
Return on Equity (Normalized)
34.59%27.03%18.66%
Return on Invested Capital (Normalized)
12.35%7.42%10.61%
Return on Assets
WM
VIE
RSG

Waste Management Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Republic Services Inc
RSG
LOCK|$qSM$hLOCK|qVt$63B
Waste Connections Inc
WCN
LOCK|CG$?<!CLOCK|rPp$38B
Veolia Environnement SA
VEOEF
—LOCK|kzTy$26B
Veolia Environnement SA ADR
VEOEY
LOCK|M!m^W%YLOCK|^T#G%$26B
GFL Environmental Inc
GFL
—LOCK|%Kp$<$18B
Clean Harbors Inc
CLH
LOCK|$&y%?sZLOCK|cd$16B
Umicore SA Ordinary Shares
UMICF
—LOCK|bb$6B
Umicore SA ADR
UMICY
—LOCK|ZY$6B
Casella Waste Systems Inc Class A
CWST
—LOCK|TY@>T$5B

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