A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
WASTE MANAGEMENT INC
WM
$96.5B
Mkt Cap
$238.75
+0.62%
WASTE MANAGEMENT INC (WM) has a current P/E ratio of 35.6, compared to its historical median P/E of 28.7. The stock is currently considered Expensive based on its historical valuation range.
WASTE MANAGEMENT INC (WM) has a 5-year average return on invested capital (ROIC) of 11.5%. This indicates solid capital allocation.
WASTE MANAGEMENT INC (WM) has a market capitalization of $96.0B. It is classified as a large-cap stock.
Yes, WASTE MANAGEMENT INC (WM) pays a dividend with a trailing twelve-month yield of 1.44%.
Based on historical P/E analysis, WASTE MANAGEMENT INC (WM) appears expensive. The current P/E of 35.6 is 24% above its historical median of 28.7. The estimated fair value CAGR (P/E method) is 9.5%.
WASTE MANAGEMENT INC (WM) operates in the Refuse Systems industry, within the Utilities sector.
WASTE MANAGEMENT INC (WM) reported annual revenue of $25.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Waste Management, Inc. is North America's leading provider of comprehensive environmental solutions, operating through five reportable segments: Collection and Disposal (East Tier and West Tier), Recycling Processing and Sales, Renewable Energy, and Healthcare Solutions. The company operates a vertically integrated business model centered on its proprietary network of 257 landfills and 342 transfer stations across the U.S. and Canada, which enables internalization of waste streams and higher consolidated margins compared to third-party disposal. Collection services are provided under multi-year commercial contracts (typically three years) and municipal franchises or subscriptions for residential customers, with fees based on collection frequency, waste volume, distance to disposal, and market factors. The company generates revenue through tipping fees at landfills, landfill gas-to-energy conversion producing renewable electricity and renewable natural gas (RNG), recycling of paper, cardboard, glass, plastic and metal, and following the 2024 Stericycle acquisition, regulated waste and compliance services and secure information destruction services in North America and Western Europe. The business model is characterized by long-term contracted revenues, asset-intensive infrastructure with significant capital requirements that create barriers to entry, and operational leverage from automation investments and cost-to-serve optimization. The company's competitive moat derives from its extensive and geographically diversified landfill network, scale advantages in collection operations, and integrated platform enabling cross-selling and synergies across waste, recycling, renewable energy, and healthcare solutions segments.
【Margin expansion and cash flow growth】 Management expects continued strong operating performance in 2026 driven by disciplined pricing execution, volume recovery from early-year weather headwinds, and operational leverage from Healthcare Solutions integration and automation investments. The company anticipates an inflection in revenue growth in the second half of 2026 as the enterprise resource planning system stabilizes and integrated service offerings gain traction with customers. Sustainability investments in renewable energy and recycling are expected to generate meaningful EBITDA contributions, with renewable natural gas facilities coming online throughout 2026 and benefiting from favorable commodity pricing and production tax credits. Capital allocation priorities remain balanced between shareholder returns (dividends and share repurchases), debt reduction to reach targeted leverage levels, and disciplined tuck-in acquisitions complementing the existing portfolio.
| Metric | Target | Period |
|---|---|---|
| Operating EBITDA | $8.15 billion–$8.25 billion | FY2026 |
| Free Cash Flow | $3.8 billion at midpoint | FY2026 |
| Capital Expenditures | $2.65 billion–$2.75 billion | FY2026 |
| Effective Tax Rate | approximately 24% | FY2026 |
| Share Count | approximately 402 million shares | End of FY2026 |
| Quarterly Dividend | $0.945 per share | Dividends declared in 2026 |
| Share Repurchases | approximately $2.0 billion | FY2026 |
Operating EBITDA (FY2026): “we expect operating EBITDA to be between $8.15 billion and $8.25 billion in 2026”
Free Cash Flow (FY2026): “we expect free cash flow growth of nearly 30% to $3.8 billion at the midpoint of the outlook”
Capital Expenditures (FY2026): “We anticipate capital expenditures for 2026 to be between $2.65 billion-$2.75 billion”
Effective Tax Rate (FY2026): “we expect an effective tax rate of approximately 24%”
Share Count (End of FY2026): “a share count at the end of the year of about 402 million shares”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 25.4B | 25.2B | 22.1B | 20.4B | 19.7B | 17.9B |
| Net Income | 2.8B | 2.7B | 2.7B | 2.3B | 2.2B | 1.8B |
| EPS | $6.94 | $6.70 | $6.81 | $5.66 | $5.39 | $4.29 |
| Free Cash Flow | 3.3B | 2.8B | 2.2B | 1.8B | 1.7B | 2.3B |
| ROIC | 10.7% | 10.6% | 11.7% | 12.2% | 12.4% | 10.7% |
| Gross Margin | - | 40.4% | 39.3% | 38.3% | 37.6% | 38.0% |
| Debt/Equity | 2.28 | 2.39 | 3.02 | 2.43 | 2.26 | 1.96 |
| Dividends/Share | $3.44 | $3.30 | $3.00 | $2.80 | $2.60 | $2.30 |
| Operating Income | 4.4B | 4.3B | 4.1B | 3.6B | 3.4B | 3.0B |
| Operating Margin | 17.3% | 17.1% | 18.4% | 17.5% | 17.1% | 16.5% |
| ROE | 27.9% | 29.7% | 36.2% | 33.5% | 32.0% | 24.9% |
| Shares Outstanding | 402M | 404M | 403M | 407M | 415M | 423M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 14.0B | 13.0B | 13.6B | 14.5B | 14.9B | 15.5B | 15.2B | 17.9B | 19.7B | 20.4B | 22.1B | 25.2B | 25.4B |
| Gross Margin | 35.7% | 36.5% | 37.6% | 37.7% | 38.0% | 38.6% | 38.6% | 38.0% | 37.6% | 38.3% | 39.3% | 40.4% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 1.5B | 1.3B | 1.4B | 1.5B | 1.5B | 1.6B | 1.7B | 1.9B | 1.9B | 1.9B | 2.3B | 2.7B | 2.7B |
| EBIT | 2.3B | 2.0B | 2.3B | 2.6B | 2.8B | 2.7B | 2.4B | 3.0B | 3.4B | 3.6B | 4.1B | 4.3B | 4.4B |
| Op. Margin | 16.4% | 15.8% | 16.9% | 18.2% | 18.7% | 17.5% | 16.0% | 16.5% | 17.1% | 17.5% | 18.4% | 17.1% | 17.3% |
| Net Income | 1.3B | 753M | 1.2B | 1.9B | 1.9B | 1.7B | 1.5B | 1.8B | 2.2B | 2.3B | 2.7B | 2.7B | 2.8B |
| Net Margin | 9.3% | 5.8% | 8.7% | 13.5% | 12.9% | 10.8% | 9.8% | 10.1% | 11.4% | 11.3% | 12.4% | 10.7% | 11.0% |
| Non-Recurring | 607M | 111M | 7.0M | 72M | 106M | 60M | 110M | 60M | 56M | 215M | 30M | 88M | 42M |
| Returns on Capital | |||||||||||||
| ROIC | 11.8% | 10.3% | 10.2% | 15.2% | 13.8% | 13.0% | 9.9% | 10.7% | 12.4% | 12.2% | 11.7% | 10.6% | 10.7% |
| ROE | 22.4% | 13.4% | 22.2% | 34.4% | 31.3% | 25.0% | 20.6% | 24.9% | 32.0% | 33.5% | 36.2% | 29.7% | 27.9% |
| ROA | 5.9% | 3.6% | 5.7% | 9.1% | 8.7% | 6.6% | 5.2% | 6.2% | 7.4% | 7.2% | 7.1% | 6.0% | 6.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 2.3B | 2.5B | 3.0B | 3.2B | 3.6B | 3.9B | 3.4B | 4.3B | 4.5B | 4.7B | 5.4B | 6.0B | 6.3B |
| Free Cash Flow | 1.1B | 1.3B | 1.7B | 1.6B | 1.9B | 2.1B | 1.8B | 2.3B | 1.7B | 1.8B | 2.2B | 2.8B | 3.3B |
| Owner Earnings | 974M | 1.2B | 1.6B | 1.7B | 2.0B | 2.2B | 1.6B | 2.2B | 2.4B | 2.6B | 3.0B | 3.0B | 3.2B |
| CapEx | 1.2B | 1.2B | 1.3B | 1.6B | 1.7B | 1.8B | 1.6B | 2.0B | 2.8B | 2.9B | 3.2B | 3.2B | 3.0B |
| Maint. CapEx | 1.3B | 1.2B | 1.3B | 1.4B | 1.5B | 1.6B | 1.7B | 2.0B | 2.0B | 2.1B | 2.3B | 2.9B | 2.9B |
| Growth CapEx | 0 | 0 | 46M | 192M | 194M | 241M | 0 | 40M | 771M | 824M | 964M | 364M | 104M |
| D&A | 1.3B | 1.2B | 1.3B | 1.4B | 1.5B | 1.6B | 1.7B | 2.0B | 2.0B | 2.1B | 2.3B | 2.9B | 2.9B |
| CapEx/OCF | 50.7% | 48.6% | 44.9% | 49.3% | 46.8% | 46.9% | 46.6% | 43.9% | 57.0% | 61.3% | 59.9% | 53.4% | 48.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 693M | 695M | 726M | 750M | 802M | 876M | 927M | 970M | 1.1B | 1.1B | 1.2B | 1.3B | 1.4B |
| Dividend Yield | 4.2% | 3.6% | 3.1% | 2.6% | 2.4% | 2.1% | 2.2% | 1.7% | 1.7% | 1.8% | 1.5% | 1.5% | 1.4% |
| Share Buybacks | 600M | 600M | 725M | 750M | 1.0B | 248M | 402M | 1.4B | 1.5B | 1.3B | 262M | 0 | 0 |
| Buyback Yield | 3.1% | 2.9% | 2.7% | 2.3% | 3.0% | 0.6% | 0.9% | 2.1% | 2.4% | 1.8% | 0.3% | N/A | 0.0% |
| Stock-Based Comp | 65M | 72M | 90M | 101M | 89M | 86M | 94M | 108M | 84M | 93M | 118M | 169M | 170M |
| Debt Repayment | 3.6B | 427M | 2.7B | 1.9B | 499M | 10.1B | 9.6B | 456M | 1.4B | 20.4B | 17.9B | 21.7B | 21.7B |
| Balance Sheet | |||||||||||||
| Net Debt | 8.1B | 8.9B | 9.5B | 10.0B | 10.4B | 9.4B | 15.6B | 13.8B | 15.2B | 16.3B | 24.5B | 23.7B | 22.7B |
| Cash & Equiv. | 1.3B | 39M | 32M | 22M | 61M | 3.6B | 553M | 118M | 351M | 458M | 414M | 201M | 158M |
| Long-Term Debt | 8.3B | 8.7B | 8.9B | 8.8B | 9.6B | 13.3B | 13.3B | 12.7B | 14.6B | 15.9B | 22.5B | 22.2B | 22.3B |
| Debt/Equity | 1.61 | 1.67 | 1.80 | 1.66 | 1.67 | 1.83 | 2.17 | 1.96 | 2.26 | 2.43 | 3.02 | 2.39 | 2.28 |
| Interest Coverage | 4.9 | 5.3 | 6.1 | 6.9 | 8.2 | 6.8 | 5.3 | 7.7 | 9.7 | 8.0 | 7.7 | 4.6 | 4.6 |
| Equity | 5.9B | 5.3B | 5.3B | 6.0B | 6.3B | 7.1B | 7.5B | 7.1B | 6.8B | 6.9B | 8.3B | 10.0B | 10.0B |
| Total Assets | 21.3B | 20.4B | 20.9B | 21.8B | 22.6B | 27.7B | 29.3B | 29.1B | 31.4B | 32.8B | 44.6B | 45.8B | 45.7B |
| Total Liabilities | 15.4B | 15.0B | 15.5B | 15.8B | 16.4B | 20.7B | 21.9B | 22.0B | 24.5B | 25.9B | 36.3B | 35.8B | 35.7B |
| Intangibles | 440M | 477M | 591M | 547M | 572M | 521M | 1.0B | 898M | 827M | 759M | 4.2B | 3.8B | 3.7B |
| Retained Earnings | 6.9B | 6.9B | 7.4B | 8.6B | 9.8B | 10.6B | 11.2B | 12.0B | 13.2B | 14.3B | 15.9B | 17.2B | 17.6B |
| Working Capital | 41M | -165M | -418M | -568M | -463M | 3.1B | -13M | -1.0B | -843M | -422M | -1.5B | -614M | -338M |
| Current Assets | 3.5B | 2.3B | 2.4B | 2.7B | 2.6B | 6.2B | 3.5B | 3.1B | 3.6B | 3.8B | 4.8B | 4.9B | 4.8B |
| Current Liabilities | 3.5B | 2.5B | 2.8B | 3.3B | 3.1B | 3.1B | 3.6B | 4.1B | 4.4B | 4.2B | 6.3B | 5.5B | 5.1B |
| Per Share Data | |||||||||||||
| EPS | 2.79 | 1.65 | 2.65 | 4.41 | 4.45 | 3.91 | 3.52 | 4.29 | 5.39 | 5.66 | 6.81 | 6.70 | 6.94 |
| Owner EPS | 2.09 | 2.65 | 3.61 | 3.85 | 4.63 | 5.18 | 3.85 | 5.27 | 5.81 | 6.28 | 7.45 | 7.45 | 8.01 |
| Book Value | 12.61 | 11.71 | 11.88 | 13.62 | 14.51 | 16.55 | 17.53 | 16.83 | 16.50 | 16.96 | 20.46 | 24.72 | 24.91 |
| Cash Flow/Share | 5.01 | 5.54 | 6.73 | 7.20 | 8.25 | 9.07 | 8.01 | 10.25 | 10.92 | 11.59 | 13.37 | 14.95 | 14.26 |
| Dividends/Share | 1.50 | 1.54 | 1.64 | 1.70 | 1.86 | 2.05 | 2.18 | 2.30 | 2.60 | 2.80 | 3.00 | 3.30 | 3.44 |
| Shares Out. | 465.2M | 456.4M | 446.0M | 442.0M | 432.6M | 427.1M | 425.0M | 423.3M | 415.2M | 407.1M | 403.2M | 404.2M | 402.3M |
| Valuation | |||||||||||||
| P/E Ratio | 14.8 | 27.1 | 22.8 | 17.1 | 17.6 | 26.4 | 31.0 | 36.2 | 27.9 | 30.6 | 29.5 | 33.0 | 34.4 |
| P/FCF | 16.7 | 15.7 | 16.3 | 20.6 | 17.8 | 21.4 | 25.5 | 28.6 | 36.1 | 38.6 | 37.5 | 31.7 | 29.2 |
| EV/EBIT | 11.8 | 14.3 | 15.9 | 16.4 | 15.9 | 19.5 | 25.0 | 26.8 | 22.9 | 24.1 | 26.0 | 26.1 | 26.9 |
| Price/Book | 3.3 | 3.8 | 5.1 | 5.5 | 5.4 | 6.2 | 6.2 | 9.2 | 9.1 | 10.2 | 9.8 | 8.9 | 9.6 |
| Price/Sales | 1.2 | 1.5 | 1.7 | 2.0 | 2.2 | 2.7 | 2.8 | 3.1 | 3.2 | 3.1 | 3.7 | 3.5 | 3.8 |
| FCF Yield | 6.0% | 6.4% | 6.1% | 4.8% | 5.6% | 4.7% | 3.9% | 3.5% | 2.8% | 2.6% | 2.7% | 3.2% | 3.4% |
| Market Cap | 19.3B | 20.4B | 27.0B | 33.2B | 33.9B | 44.1B | 46.4B | 65.7B | 62.4B | 70.4B | 81.1B | 89.4B | 96.0B |
| Avg. Price | 35.61 | 42.12 | 52.04 | 64.88 | 76.36 | 97.80 | 101.21 | 131.41 | 150.19 | 155.79 | 202.36 | 220.86 | 238.75 |
| Year-End Price | 41.40 | 44.77 | 60.48 | 75.22 | 78.31 | 103.29 | 109.15 | 155.12 | 150.20 | 173.05 | 201.03 | 221.10 | 238.75 |
WASTE MANAGEMENT INC passes 3 of 9 quality checks, indicating weak fundamentals.
WASTE MANAGEMENT INC trades at 35.6x trailing earnings, compared to its 15-year median P/E of 28.7x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 34.2x vs a median of 27.0x. The company's 5-year average ROIC is 11.5% with a gross margin of 38.7%. Total shareholder yield (dividends) is 1.4%. At current prices, the estimated annualized return to fair value is +2.2%.
WASTE MANAGEMENT INC (WM) has a net profit margin of 10.7%. This is a healthy margin.
WASTE MANAGEMENT INC (WM) generated $2.8 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
WASTE MANAGEMENT INC (WM) has a debt-to-equity ratio of 2.39. This indicates higher leverage, which may increase financial risk.
WASTE MANAGEMENT INC (WM) reported earnings per share (EPS) of $6.70 in its most recent fiscal year.
WASTE MANAGEMENT INC (WM) has a return on equity (ROE) of 29.7%. This indicates the company generates strong returns for shareholders.
WASTE MANAGEMENT INC (WM) has a 5-year average gross margin of 38.7%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for WASTE MANAGEMENT INC (WM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
WASTE MANAGEMENT INC (WM) has a book value per share of $24.72, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong operating performance in 2026 driven by disciplined pricing execution, volume recovery from early-year weather headwinds, and operational leverage from Healthcare Solutions integration and automation investments. The company anticipates an inflection in revenue growth in the second half of 2026 as the enterprise resource planning system stabilizes and integrated service offerings gain traction with customers. Sustainability investments in renewable energy and recycling are expected to generate meaningful EBITDA contributions, with renewable natural gas facilities coming online throughout 2026 and benefiting from favorable commodity pricing and production tax credits. Capital allocation priorities remain balanced between shareholder returns (dividends and share repurchases), debt reduction to reach targeted leverage levels, and disciplined tuck-in acquisitions complementing the existing portfolio.
Based on recent SEC filings and earnings calls, WASTE MANAGEMENT INC (WM) has provided the following forward guidance: Operating EBITDA: $8.15 billion–$8.25 billion (FY2026); Free Cash Flow: $3.8 billion at midpoint (FY2026); Capital Expenditures: $2.65 billion–$2.75 billion (FY2026); Effective Tax Rate: approximately 24% (FY2026); Share Count: approximately 402 million shares (End of FY2026), plus 2 additional metrics.
Quarterly Dividend (Dividends declared in 2026): “our Board of Directors expects to increase the quarterly dividend from $0.825 to $0.945 per share for dividends declared in 2026”
Share Repurchases (FY2026): “we currently expect to repurchase approximately $2.0 billion of shares during 2026”