Skip to Content
Morningstar
Get 14 Days Free

Waste Management Inc WM

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Waste Management Raises 2021 Guidance as Recovery Gains Steam and More ADS Synergies Identified

Analyst Note

| Brian Bernard, CFA, CPA |

Waste Management enjoyed a strong first-quarter performance, giving management the confidence to boost full-year financial guidance. Revenue increased 10% year over year to $4.1 billion, driven by over 2% internal revenue growth and 8% growth from the Advanced Disposal Services acquisition, which was completed on Oct. 30, 2020. Total average yield of 4.9% (including 3.4% core price) was partially offset by an almost 3% decrease in volume. Favorable pricing, cost controls, and better-than-expected ADS synergies resulted in a 100-basis-point increase in adjusted EBITDA margin to 28.2%.

Read Full Analysis

Company Profile

Business Description

Waste Management ranks as the largest integrated provider of traditional solid waste services in the United States, operating approximately 268 active landfills and about 350 transfer stations (includes acquired Advanced Disposal landfills and transfer stations). The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.

Contact
1001 Fannin Street
Houston, TX, 77002
T +1 713 512-6200
Sector Industrials
Industry Waste Management
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Slow Growth
Employees 48,250

Related

Fund Spy
Investors May Have Sold These Cautious Funds Too Soon
These three funds delivered in 2018 but had sizable outflows.
Connor Young
Stock Strategist
Route Efficiencies and Landfills Help Waste Connections Dig a Wide Moat
This waste and recycling service provider enjoys enviable competitive positioning.
Matthew Young
US Videos
Intangible Assets, Cost Advantage Boost Waste Management
We're upgrading the firm to wide moat, but shares are pricey today.
Matthew Young
Premium Article
2 New Wide-Moat Stocks
Premium Exclusive: We recently boosted the economic moat rating for these two firms.
Susan Dziubinski
Stock Strategist
Investors Could Clean Up With Covanta
The waste-to-energy operator should benefit from global sustainability initiatives.
Barbara Noverini
Commentary
Not All Moats Are Created Equal
Some sources of moats are more potent than others.
Andrew Lane
ETF Specialist
Just a Bump in the Road for the Global Infrastructure Sector?
This ETF has been battered by the decline in energy prices and weakness in emerging markets.
Robert Goldsborough
Credit Insights
U.S. Corporate Bonds Strengthening as Demand From Foreign Investors Picks Up
Corporations benefit in new issue market as demand drives cheaper financing.
David Sekera
ETF Specialist
Opportunity in the World’s Roads, Railways, and Water Systems
iShares Global Infrastructure provides a broad, inexpensive way to invest in global infrastructure.
Robert Goldsborough
Stock Strategist
Seeking Small-Cap Moats: US Ecology
We continue to be impressed by this wide-moat hazardous-waste management firm.
Todd Wenning
Credit Insights
Higher Yields Fail to Attract Buyers
Interest rates have begun to rise as the market is pricing in an increasing probability that the Fed may begin to taper off its asset-purchase program within the next few months.
David Sekera
Quarter-End Insights
Credit Outlook: Sector Updates and Top Bond Picks
Get our sector-by-sector take on the bond market, plus our five best bond ideas.
David Sekera
Credit Insights
Monetary Largesse Lifts Credit Market
While the market as a whole appears to be driven by monetary policy as opposed to individual fundamental analysis, we advise investors to be cautious in selecting which bond offerings they participate in.
David Sekera
Credit Insights
The Rumors Were True: Eurogroup Agrees to Provide Loans to Recapitalize Spanish Banks
We continue to favor U.S. corporate bonds over European corporate bonds.
David Sekera
Credit Insights
Will One Bad Apple Spoil the Bunch?
While Greece leaving the eurozone would cause significant stress in the short term, we think the greater impact is the precedent it would set for other financially beleaguered countries.
David Sekera
Investing Specialists
Making Retirement Work Without a Huge Nest Egg
With a carefully calibrated withdrawal rate and a well-constructed portfolio, this couple proves you don't need millions to retire.
Christine Benz
Stock Strategist Industry Reports
Airspace Is the Advantage in Waste Disposal
The moats can be found in landfills.
Barbara Noverini
Investing Specialists
10 Dividend Stocks Our Ultimate Stock-Pickers Should Consider
Our top managers could look beyond pharmaceuticals for additional yield.
The Morningstar Ultimate Stock-Pickers Team
Investing Specialists
Where Are the Best Bargains Now?
Some investors are biting on blue chips, while other argue that stocks aren't cheap enough given macro headwinds.
Christine Benz
US Videos
Investing in Energy Sustainably
Using a sustainable investing lens can help boost your long-term energy sector returns, according to Parnassus' Ben Allen.
Kathryn Young

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.