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
| Profile Item | WM |
|---|---|
| Name | Waste Management, Inc. |
| Country/Region | United States |
| GICS Sector | Industrials |
| GICS Industry Group | Commercial & Professional Services |
| GICS Industry | Commercial Services & Supplies |
| GICS Sub-Industry | Environmental & Facilities Services |
| Market Capitalization | 93.64 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | June 22, 1988 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: WM | Industry 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
Return Distribution
Risk Metrics
| Metric | Current stock: WM | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 20.18% | 39.55% |
| Beta (5Y) | 0.43 | 0.83 |
| Max Drawdown (5Y) | -18.14% | -56.72% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: WM | Industry 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
- --
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%
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%
Profitability Metrics
| Metric | Current stock: WM | Industry 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.
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.
Growth Metrics
| Metric | Current stock: WM | Industry 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
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
Financial Strength Metrics
| Metric | Current stock: WM | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.93 | 1.48 |
| Debt / Equity (MRQ) | 2.28 | 0.94 |
| Net Debt / EBITDA | 2.97 | 2.67 |
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%
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%
Dividend Metrics
| Metric | Current stock: WM | Industry 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
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
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
Valuation Metrics
| Metric | Current stock: WM | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 34.60 | 23.07 |
| P/S Ratio (TTM) | 3.68 | 1.37 |
| P/B Ratio (MRQ) | 9.36 | 3.25 |
| Free Cash Flow Yield (TTM) | 2.28% | 5.04% |