WM

Waste Management, Inc.

Fundamental data last updated:June 12, 2026

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company profile

SECTOR

Industrials

industry

Waste Management

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/27/2026

Business Summary

Waste Management, Inc. (WM) functions as a premier provider of environmental waste solutions across North America, serving a diverse client base that includes residential, commercial, industrial, and municipal customers. The company's core operations involve comprehensive collection services, which include gathering and transporting both waste materials and recyclables from their initial point of generation to designated transfer stations, material recovery facilities (MRFs), or final disposal sites. Waste Management maintains an extensive network of facilities, owning, developing, and operating landfill gas-to-energy plants within the United States, in addition to managing numerous transfer stations. As of December 31, 2021, its substantial infrastructure consisted of 255 solid waste landfills, 5 secure hazardous waste landfills, 96 material recovery facilities, and 340 transfer stations. Beyond primary collection and disposal, WM offers services in materials processing and commodities recycling. This extends to recycling brokerage, where they handle the marketing of recyclable goods for third-party entities, alongside providing various other strategic business solutions. Its service portfolio also encompasses construction and remediation projects, the responsible management of fly ash and other residues generated from coal and fuel combustion, and specialized in-plant services offering full-spectrum waste management consulting. Furthermore, the company delivers tailored disposal solutions for oil and gas exploration and production activities. Originally incorporated in 1987 as USA Waste Services, Inc., the company rebranded to Waste Management, Inc. in 1998. Its corporate headquarters are situated in Houston, Texas.

 


VALUATION

P/E

31.57

Market Cap ($M USD)

$87.86B

Forward P/E

18.20

PEG

0.25

PRICE TO SALES

3.46

PRICE TO BOOK

8.80

EV / EBITDA

14.93

5-Year Average P/E

Free Cash Flow Yield

3.74%

DCF Value

$325.38

Graham Number

$62.25

Price to FCF

26.71

EV to FCF

33.62

Earnings Yield

3.17%

FCF Yield

3.74%

DIVIDEND

Yield

1.62%

Annual Payout

$3.54

Payout Ratio

49.50%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$6.93

Next Year EPS Growth Estimate

$12.02

Next Year Revenue Growth Estimate

$3.26T

Return on Equity (ROE)

28.85%

FREE CASH FLOW

Operating Margin

18.46%

Debt-to-Equity

2.29

Piotroski F-Score

7

Altman Z-Score

2.86

Return on Invested Capital (ROIC)

11.57%

Current Ratio

0.93

Quick Ratio

0.93

Net Debt to EBITDA

3.07

Interest Coverage

5.18

Gross Profit margin

32.06%

FCF PER SHARE

$8.16

REVENUE PER SHARE

$63.03

Gainseekers Quantitative Analysis

Summary

WM Waste Management, Inc. appears to be significantly undervalued based on its DCF Value, trading well below this intrinsic estimate. The Forward P/E of 17.8 suggests a more reasonable valuation compared to its current P/E, indicating potential growth at a fair price. However, the Earnings Yield of 3.24% is modest, reflecting a cautious market sentiment. The Altman Z-score of 2.86 signals moderate financial health, suggesting the company is not at immediate risk of distress but isn’t a fortress either. Overall, the market seems to be underappreciating its future earnings potential.

AI Exposure / Tech Reliance

In the waste management industry, WM is well-positioned to leverage AI and tech advancements to optimize operations and reduce costs. Automation in waste sorting and route optimization can enhance efficiency, while data analytics can improve customer service and operational insights. This adaptability ensures WM remains resilient amidst technological shifts.

The Bull Case

For the value-driven investor, WM offers compelling strengths. A robust ROIC of 11.57% indicates efficient capital deployment, while a Piotroski F-Score of 7 suggests solid financial health. The FCF Yield, though modest, is supported by strong operating margins of 18.46%, showcasing the company's pricing power and operational efficiency. These metrics paint a picture of a company capable of generating consistent returns and maintaining competitive advantages.

The Bear Case

Despite its strengths, WM faces structural challenges. The Price/Book ratio of 8.61 and Price/Sales of 3.38 highlight a premium valuation that could deter value investors. Additionally, with a Net Debt to EBITDA of 3.07, the company carries a substantial debt load, which could pressure cash flows. The stock's proximity to its 52-week high suggests it may be technically overextended, raising caution for those wary of buying at elevated levels.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$258.50

Institutional Ownership %

1-Year Beta

0.46

Insider Buying % (6 Mo)

Distance to 52-Week High

13.41%

Distance to 52-Week Low

11.28%

EARNINGS SURPRISE %

3.43%

50-DAY SMA

$223.29

200-DAY SMA

$221.58

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.