WM Waste Management Inc

Waste Management is the largest waste collection, transfer, disposal, and recycling company in North America. Sector: Industrials.

Waste Management Inc (WM) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Examining the company through a capital allocation lens, ROIC is 9.91%, WACC is 6.41%, and the economic spread is 3.51%. On balance, the company is generating returns above their cost of capital, though the margin is slim enough to warrant attention. Supporting metrics show ROE at 29.70% and ROA at 6.24%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Multiple analysis puts the company at trailing P/E of 35.14, forward P/E of 28.68, PEG of 2.45. Trailing P/E sits modestly above forward P/E, a spread that is consistent with steady earnings progress and limited near-term re-rating potential. On a PEG basis, valuation is in the middle ground — fair for the growth on offer, with the return case resting on earnings delivery rather than re-rating. The aggregate current ratio of 0.89 reflects tighter near-term liquidity — a factor worth monitoring if macro conditions tighten. The combined valuation and liquidity profile points to a company where current prices embed meaningful growth expectations, and where delivery against those expectations will drive the return outcome.

From gross to free cash flow, gross margin sits at 40.44%, operating margin at 18.46%, and free cash flow margin at 11.17%. At this gross margin level, the the company demonstrate adequate production efficiency without commanding premium pricing. The operating margin reading is healthy — adequate to support reinvestment without sacrificing profitability. The company's FCF margin is modest — adequate for near-term needs but not indicative of exceptional capital efficiency. The margin profile is mixed, with some layers more resilient than others and less room for execution slippage.

Combining revenue momentum with analyst targets, the estimated 12-month price change of 11.77%, where consensus expectations favor gradual appreciation over the next year, while TTM revenue growth of 7.13% reflecting moderate but reliable revenue progress across the company. Separating operating reality from market-implied expectations is useful here — they can diverge meaningfully when sentiment shifts. The forward return case hinges on whether the operating reality stays close enough to analyst assumptions for those targets to remain credible. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The fundamental case holds up across most key dimensions — the combination of positive economic spread, reasonable valuation, and analyst support is constructive.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.