NYSE
WM
Last Price
US $230.40
KEY FIGURES
MKT CAP
$90.6B
EPS
TTM
$6.93
PEG
TTM
N/M
P/E
TTM
32.54x
P/S
TTM
3.59x
YIELD
1.57%
GROWTH
Revenue Y/Y
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Waste Management, Inc. cash flow to debt ratio of 26.38% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Waste Management, Inc.'s free cash flow has increased 30.43% from $2.16G last year to $2.82G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Waste Management, Inc.'s debt to equity ratio is 2.28, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Waste Management, Inc.'s debt has decreased relative to shareholder equity from 2.90 last year to 2.28 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
Waste Management, Inc. has a net debt to EBITDA ratio of 3.15x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Waste Management, Inc.'s interest coverage ratio of 5.18 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Waste Management, Inc.'s profit margin has decreased (-11.66%) in the last year from 12.45% to 10.99%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
Waste Management, Inc.'s short-term liabilities of $5.52G exceed its short-term assets of $4.91G, signaling financial risk
Increasing performance - ROA.
Waste Management, Inc.'s return on assets of 6.11% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Waste Management, Inc.'s return on equity of 28.85%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Waste Management, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Waste Management, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Waste Management, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Waste Management, Inc. has a free cash flow yield of 3.11%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Waste Management, Inc.'s yearly earnings has decreased -1.38% since last year from $2.75G to $2.71G, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Waste Management, Inc.'s yearly revenue has increased 14.24% since last year from $22.06G to $25.20G, signaling increasing performance
Increasing performance - ROIC.
ROIC 9.02% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Waste Management, Inc.'s 3-year revenue CAGR of 8.56% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Waste Management, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Waste Management, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Waste Management, Inc. is overvalued relative to its fair value price of 66.24 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Waste Management, Inc. has an earnings yield of 3.07%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Waste Management, Inc. is overvalued relative to its fair value price of 68.68 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Waste Management, Inc. has an EV/EBITDA ratio of 15.30x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Waste Management, Inc. has a PEG-ratio over 1 which is considered overvalued
Overvalued - P/B ratio.
Waste Management, Inc. has a price-to-book ratio of 9.07x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Waste Management, Inc. has a price-to-sales ratio of 3.56x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
28.85%
Return on equity
ROIC: 9.02%
Valuation History
32.5X
Price to Earnings
EV/EBITDA: 15.3X
Cash flow
Profit margin
10.62%
(FY vs FY)
EBITDA Y/Y
11.97%
(FY vs FY)
Cash flow Y/Y
9.72%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $230.40
-71.25%
Default assumptions
EBITDA Multiple
Fair Value
Market $230.40
-70.19%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.