A Business at a Glance
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Item 1. Business. Waste Management, Inc. is a holding company and all operations are conducted by its subsidiaries. When the terms “the Company,” “we,” “us” or “our” are used in this document, those terms refer to Waste Management, Inc., together with its consolidated subsidiaries and consolidated variable interest entities. When we use the term “WMI,” we are referring only to Waste Management, Inc., the parent holding company. WMI was incorporated in Oklahoma in 1987 under the name “USA Waste Services, Inc.” and was reincorporated as a Delaware company in 1995. In a 1998 merger, the Illinois-based waste services company formerly known as Waste Management, Inc. became a wholly-owned subsidiary of WMI and changed its name to Waste Management Holdings, Inc. (“WM Holdings”). At the same time, our parent holding company changed its name from USA Waste Services to Waste Management, Inc. Like WMI, WM Holdings is a holding company and all operations are conducted by subsidiaries.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 25.2B | 25.2B | 22.1B | 20.4B | 19.7B | 17.9B |
| Net Income | 2.7B | 2.7B | 2.7B | 2.3B | 2.2B | 1.8B |
| EPS | $6.70 | $6.70 | $6.81 | $5.66 | $5.39 | $4.29 |
| Free Cash Flow | 2.8B | 2.8B | 2.2B | 1.8B | 1.9B | 2.4B |
| ROIC | 10.2% | 10.3% | 9.9% | 11.9% | 12.0% | 10.9% |
| Gross Margin | 40.4% | 40.4% | 39.3% | 38.3% | 37.6% | 38.0% |
| Debt/Equity | 2.36 | 2.36 | 3.06 | 2.40 | 2.25 | 1.98 |
| Dividends/Share | $3.30 | $3.30 | $3.00 | $2.80 | $2.60 | $2.30 |
| Operating Income | 4.3B | 4.3B | 4.1B | 3.6B | 3.4B | 3.0B |
| Operating Margin | 17.1% | 17.1% | 18.4% | 17.5% | 17.1% | 16.5% |
| ROE | 27.1% | 29.7% | 33.3% | 33.4% | 32.7% | 25.5% |
| Shares Outstanding | 404M | 404M | 403M | 407M | 415M | 423M |
WASTE MANAGEMENT INC passes 3 of 9 quality checks, indicating weak fundamentals.
WASTE MANAGEMENT INC trades at 34.5x trailing earnings, compared to its 15-year median P/E of 28.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 33.1x vs a median of 26.2x. The company's 5-year average ROIC is 11.0% with a gross margin of 38.7%. Total shareholder yield (dividends + buybacks) is 1.7%. At current prices, the estimated annualized return to fair value is +2.6%.
WASTE MANAGEMENT INC (WM) has a current P/E ratio of 34.5, compared to its historical median P/E of 28.7. The stock is currently considered Fair based on its historical valuation range.
WASTE MANAGEMENT INC (WM) has a 5-year average return on invested capital (ROIC) of 11.0%. This indicates solid capital allocation.
WASTE MANAGEMENT INC (WM) has a market capitalization of $93.4B. It is classified as a large-cap stock.
Yes, WASTE MANAGEMENT INC (WM) pays a dividend with a trailing twelve-month yield of 1.43%. The company also returns capital through share buybacks, with a buyback yield of 0.28%.
Based on historical P/E analysis, WASTE MANAGEMENT INC (WM) appears fair. The current P/E of 34.5 is 20% above its historical median of 28.7. The estimated fair value CAGR (P/E method) is 9.2%.
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 (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 2.36. 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.