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Waste Management (WM) Stock Analysis

This is a peer-relative look at Waste Management (WM): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Commercial & Professional Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Waste Management (WM)
Profile ItemWM
NameWaste Management, Inc.
Country/RegionUnited States
GICS SectorIndustrials
GICS Industry GroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
GICS Sub-IndustryEnvironmental & Facilities Services
Market Capitalization93.64 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJune 22, 1988
Security TypeCommon Stock

Price Performance

Cumulative Growth

WM
GSPC
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Waste Management (WM) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Waste Management (WM) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Waste Management (WM) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Waste Management (WM) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WMIndustry group median
Total Return (1Y)5.16%-4.47%
Total Return (3Y, Annualized)12.29%4.12%
Total Return (5Y, Annualized)11.72%2.70%

Risk Profile

Drawdown History

WM
GSPC
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Waste Management (WM) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Waste Management (WM) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Waste Management (WM) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WMIndustry group median
Volatility (1Y, Annualized)20.18%39.55%
Beta (5Y)0.430.83
Max Drawdown (5Y)-18.14%-56.72%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. WM is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Waste Management (WM) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WMIndustry group median
Sharpe Ratio (1Y)0.06-0.21
Sortino Ratio (1Y)0.08-0.31

Profitability

ROE (TTM)

Waste Management (WM) posts ROE of 29.94%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

WM

Commercial & Professional Services industry group

29.94%

Group distribution
Max
53.04%
WM
29.94%
Q3
25.65%
Median
13.99%
Q1
2.99%
Min
-28.46%
Largest peers
ADP
71.21%
RELX
70.51%
CTAS
40.71%
WM
29.94%
RSG
18.35%
WCN
13.12%
PAYX
--
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Where Waste Management (WM) stands on ROE within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Waste Management (WM) keeps 10.99% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

WM

Commercial & Professional Services industry group

10.99%

Group distribution
Max
26.63%
Q3
11.56%
WM
10.99%
Median
6.26%
Q1
1.30%
Min
-13.15%
Largest peers
PAYX
26.63%
RELX
21.53%
ADP
20.12%
CTAS
17.75%
RSG
12.99%
WM
10.99%
WCN
10.97%
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Where Waste Management (WM) stands on net margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Waste Management (WM) turns 17.52% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

WM

Commercial & Professional Services industry group

17.52%

Group distribution
Max
38.33%
Q3
17.67%
WM
17.52%
Median
9.37%
Q1
3.13%
Min
-4.52%
Largest peers
PAYX
38.33%
RELX
31.41%
ADP
30.18%
CTAS
23.65%
RSG
20.20%
WCN
18.75%
WM
17.52%
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Where Waste Management (WM) stands on operating margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Waste Management (WM) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WMIndustry group median
ROE (TTM)29.94%13.99%
ROA (TTM)6.60%5.17%
Net Margin (TTM)10.99%6.26%
Operating Margin (TTM)17.52%9.37%
Gross Margin (TTM)40.61%36.49%

Growth

Revenue Growth

Waste Management (WM) grew revenue 14.24%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Waste Management (WM): Revenue Growth across different time periods, set against Commercial & Professional Services industry-group medians.

EPS Growth

Waste Management (WM) grew earnings per share -1.62%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Waste Management (WM): EPS Growth across different time periods, set against Commercial & Professional Services industry-group medians.

Growth Metrics

Waste Management (WM) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WMIndustry group median
Revenue Growth (YoY)14.24%6.05%
Revenue Growth (3Y CAGR)8.56%6.27%
EPS Growth (YoY)-1.62%6.77%
EPS Growth (3Y CAGR)7.52%9.88%

Financial Strength

Current Ratio (MRQ)

Waste Management (WM) has current ratio of 0.93, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

WM

Commercial & Professional Services industry group

0.93

Group distribution
Max
3.17
Q3
2.01
Median
1.48
Q1
1.13
WM
0.93
Min
0.45
Largest peers
CTAS
1.43
PAYX
1.15
ADP
1.04
WM
0.93
WCN
0.69
RSG
0.67
RELX
0.49
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Where Waste Management (WM) stands on current ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Waste Management (WM) has debt-to-equity ratio of 2.28, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

WM

Commercial & Professional Services industry group

2.28

Group distribution
Max
2.61
WM
2.28
Q3
1.39
Median
0.94
Q1
0.40
Min
0.01
Largest peers
RELX
3.04
WM
2.28
PAYX
1.24
RSG
1.18
WCN
1.17
ADP
0.69
CTAS
0.53
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Where Waste Management (WM) stands on debt-to-equity ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Waste Management (WM) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WMIndustry group median
Current Ratio (MRQ)0.931.48
Debt / Equity (MRQ)2.280.94
Net Debt / EBITDA2.972.67

Dividends

Dividend Yield (TTM)

Waste Management (WM) has dividend yield of 1.43%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

WM

Commercial & Professional Services industry group

1.43%

Group distribution
Max
3.77%
Q3
1.82%
WM
1.43%
Median
0.44%
Q1
0.00%
Min
0.00%
Largest peers
ADP
2.54%
RELX
1.98%
WM
1.43%
RSG
1.11%
CTAS
0.89%
WCN
0.78%
PAYX
0.00%
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Where Waste Management (WM) stands on dividend yield within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Waste Management (WM) has payout ratio of 49.49%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

WM

Commercial & Professional Services industry group

49.49%

Group distribution
Max
90.59%
WM
49.49%
Q3
36.56%
Median
16.11%
Q1
0.00%
Min
0.00%
Largest peers
PAYX
90.59%
ADP
60.45%
RELX
57.42%
WM
49.49%
CTAS
36.66%
RSG
35.22%
WCN
32.44%
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Where Waste Management (WM) stands on payout ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Waste Management (WM) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WMIndustry group median
Dividend Yield (TTM)1.43%0.44%
Dividend Payout Ratio (TTM)49.49%16.11%

Valuation

P/E Ratio (TTM)

Waste Management (WM) trades at P/E ratio of 34.60, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

WM

Commercial & Professional Services industry group

34.60

Group distribution
Max
67.06
Q3
38.84
WM
34.60
Median
23.07
Q1
16.03
Min
4.96
Largest peers
WCN
41.69
CTAS
41.15
WM
34.60
RSG
30.79
ADP
23.81
PAYX
23.57
RELX
23.05
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Where Waste Management (WM) stands on P/E ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Waste Management (WM) trades at 3.68 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

WM

Commercial & Professional Services industry group

3.68

Group distribution
Max
7.33
WM
3.68
Q3
3.42
Median
1.37
Q1
0.74
Min
0.13
Largest peers
PAYX
10.04
CTAS
7.12
RELX
5.96
ADP
4.56
WCN
4.45
RSG
3.96
WM
3.68
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Where Waste Management (WM) stands on P/S ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Waste Management (WM) trades at 9.36 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

WM

Commercial & Professional Services industry group

9.36

Group distribution
Max
10.74
WM
9.36
Q3
5.92
Median
3.25
Q1
1.95
Min
-2.86
Largest peers
RELX
75.12
CTAS
15.60
ADP
15.53
PAYX
10.66
WM
9.36
RSG
5.52
WCN
5.22
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Where Waste Management (WM) stands on P/B ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Waste Management (WM) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WMIndustry group median
P/E Ratio (TTM)34.6023.07
P/S Ratio (TTM)3.681.37
P/B Ratio (MRQ)9.363.25
Free Cash Flow Yield (TTM)2.28%5.04%