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Waste Management Inc WM

Morningstar Rating
$207.26 −0.52 (0.25%)
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Company Report

Waste Management Earnings: Firm Positioned Well for 2024 After Strong Fourth-Quarter Results

Wide-moat Waste Management reported robust fourth-quarter earnings as year-over-year revenue growth accelerated on a sequential basis from 2.4% to 5.7%. Additionally, continued rationalization of operating expenses drove record adjusted EBITDA margin of 29.9%. We expect WM's momentum to carry into 2024, resulting in sales and adjusted EBITDA above our prior expectations. As such, we increased our fair value estimate 5% to $159 per share due to our more optimistic near-term growth and profit margin assumptions.

Price vs Fair Value

WM is trading at a 31% premium.
Price
$207.78
Fair Value
$945.00
Uncertainty
Low
1-Star Price
$779.71
5-Star Price
$842.50
Economic Moat
Vpj
Capital Allocation
Dtwsszd

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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News

Trading Information

Previous Close Price
$207.78
Day Range
$206.86209.78
52-Week Range
$148.31209.78
Bid/Ask
$205.42 / $211.53
Market Cap
$83.24 Bil
Volume/Avg
1.7 Mil / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
33.48
Price/Sales
4.13
Dividend Yield (Trailing)
1.35%
Dividend Yield (Forward)
1.35%
Total Yield
2.92%

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

Competitors

Valuation

Metric
WM
SRCL
RSG
Price/Earnings (Normalized)
33.4828.8234.95
Price/Book Value
12.052.085.55
Price/Sales
4.131.923.94
Price/Cash Flow
16.9715.8916.39
Price/Earnings
WM
SRCL
RSG

Financial Strength

Metric
WM
SRCL
RSG
Quick Ratio
0.790.760.51
Current Ratio
0.900.900.58
Interest Coverage
7.041.275.22
Quick Ratio
WM
SRCL
RSG

Profitability

Metric
WM
SRCL
RSG
Return on Assets (Normalized)
7.92%3.41%5.76%
Return on Equity (Normalized)
36.61%7.44%16.99%
Return on Invested Capital (Normalized)
12.95%5.60%9.37%
Return on Assets
WM
SRCL
RSG
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Waste Management Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
RSG
Republic Services IncQwm$58.5 Bil
WCN
Waste Connections IncYwmt$43.1 Bil
VEOEF
Veolia Environnement SANltb$23.2 Bil
VEOEY
Veolia Environnement SA ADRWpjz$23.2 Bil
GFL
GFL Environmental IncZsjqgj$13.2 Bil
CLH
Clean Harbors IncTvtwcf$9.8 Bil
FMOCF
Fomento de Construcciones y Contratas SAZbbw$6.1 Bil
CWST
Casella Waste Systems Inc Class ABxpbw$5.2 Bil
SRCL
Stericycle IncMgmptd$5.2 Bil

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