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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
27.3%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.46%
Trailing Yield
$1.46
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
50%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, WASTE MANAGEMENT INC (WM) receives a "Hold" rating with a composite score of 50.1/100, ranked #714 out of 4446 stocks. Key factor scores: Quality 50/100, Value 58/100, Momentum 48/100. This is quantitative analysis only — not investment advice.
WASTE MANAGEMENT INC (WM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does WASTE MANAGEMENT INC Do?
Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns, develops, and operates landfill gas-to-energy facilities in the United States, as well as owns and operates transfer stations. As of December 31, 2021, the company owned or operated 255 solid waste landfills; 5 secure hazardous waste landfills; 96 MRFs; and 340 transfer stations. It also provides materials processing and commodities recycling services; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company offers construction and remediation services; services related with the disposal of fly ash, and residue generated from the combustion of coal and other fuel stocks; in-plant services comprising full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is headquartered in Houston, Texas. WASTE MANAGEMENT INC (WM) is classified as a large-cap stock in the Industrials sector, specifically within the Business Services industry. The company is led by CEO James C. Fish and employs approximately 49,500 people, headquartered in Houston, Texas. With a market capitalization of $93.2B, WM is one of the prominent companies in the Industrials sector.
WASTE MANAGEMENT INC (WM) Stock Rating — Hold (April 2026)
As of April 2026, WASTE MANAGEMENT INC receives a Hold rating with a composite score of 50.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.WM ranks #714 out of 4,446 stocks in our coverage universe. Within the Industrials sector, WASTE MANAGEMENT INC ranks #122 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
WM Stock Price and 52-Week Range
WASTE MANAGEMENT INC (WM) currently trades at $229.45. The stock lost $3.65 (1.6%) in the most recent trading session. The 52-week high for WM is $248.13, which means the stock is currently trading -7.5% from its annual peak. The 52-week low is $194.11, putting the stock 18.2% above its annual trough. Recent trading volume was 1.4M shares, reflecting moderate market activity.
Is WM Overvalued or Undervalued? — Valuation Analysis
WASTE MANAGEMENT INC (WM) carries a value factor score of 58/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 34.47x, compared to the Industrials sector average of 28.33x — a premium of 22%. The price-to-book ratio stands at 9.41x, versus the sector average of 2.23x. The price-to-sales ratio is 3.84x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, WM trades at 19.44x EV/EBITDA, versus 5.70x for the sector. The EV/EBIT multiple is 26.75x.
Overall, WM's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
WASTE MANAGEMENT INC Profitability — ROE, Margins, and Quality Score
WASTE MANAGEMENT INC (WM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 27.3%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 5.9% versus the sector average of 3.3%.
On a margin basis, WASTE MANAGEMENT INC reports gross margins of 39.9%, compared to 35.8% for the sector. The operating margin is 17.5% (sector: 6.2%). Net profit margin stands at 11.2%, versus 3.9% for the average Industrials stock. Revenue growth is running at 19.3% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
WM Debt, Balance Sheet, and Financial Health
WASTE MANAGEMENT INC has a debt-to-equity ratio of 359.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.89x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $22.91B. Cash and equivalents stand at $175M.
WM has a beta of 0.24, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for WASTE MANAGEMENT INC is 91/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
WASTE MANAGEMENT INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, WASTE MANAGEMENT INC reported revenue of $24.50B and earnings per share (EPS) of $6.72. Net income for the quarter was $2.73B. Gross margin was 39.9%. Operating income came in at $4.27B.
In FY 2025, WASTE MANAGEMENT INC reported revenue of $25.20B and earnings per share (EPS) of $6.72. Net income for the quarter was $2.71B. Gross margin was 40.4%. Revenue grew 14.2% year-over-year compared to FY 2024. Operating income came in at $4.31B.
In Q3 2025, WASTE MANAGEMENT INC reported revenue of $6.44B and earnings per share (EPS) of $1.50. Net income for the quarter was $603M. Gross margin was 40.5%. Revenue grew 14.9% year-over-year compared to Q3 2024. Operating income came in at $989M.
In Q2 2025, WASTE MANAGEMENT INC reported revenue of $6.43B and earnings per share (EPS) of $1.80. Net income for the quarter was $727M. Gross margin was 40.3%. Revenue grew 19.0% year-over-year compared to Q2 2024. Operating income came in at $1.15B.
Over the past 8 quarters, WASTE MANAGEMENT INC has demonstrated a growth trajectory, with revenue expanding from $5.40B to $24.50B. Investors analyzing WM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
WM Dividend Yield and Income Analysis
WASTE MANAGEMENT INC (WM) currently pays a dividend yield of 1.5%. At this yield, a $10,000 investment in WM stock would generate approximately $$146.00 in annual dividend income. The net margin of 11.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
WM Momentum and Technical Analysis Profile
WASTE MANAGEMENT INC (WM) has a momentum factor score of 48/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 28/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
WM vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing WM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full WM vs S&P 500 (SPY) comparison to assess how WASTE MANAGEMENT INC stacks up against the broader market across all factor dimensions.
WM Next Earnings Date
No upcoming earnings date has been announced for WASTE MANAGEMENT INC (WM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy WM? — Investment Thesis Summary
WASTE MANAGEMENT INC presents a balanced picture with arguments on both sides. Low volatility (stability score 91/100) reduces downside risk.
In summary, WASTE MANAGEMENT INC (WM) earns a Hold rating with a composite score of 50.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on WM stock.
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Institutional Research Dossier
WASTE MANAGEMENT INC (WM) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Waste Management Inc. (WM) receives a Hold rating, reflecting a balanced view of its strong market position and solid financial performance against a relatively rich valuation. The company's dominant position in the waste management industry, characterized by high barriers to entry and essential service provision, supports consistent revenue generation and profitability. However, the current valuation appears to fully price in these strengths, limiting potential upside for investors at this juncture.
While WM's operational efficiency and strategic acquisitions have fueled growth, the high debt levels and sensitivity to economic cycles warrant caution. The company's commitment to sustainability and technological advancements offers long-term growth opportunities, but these are already largely factored into the stock's premium valuation. Therefore, a Hold rating is appropriate, suggesting investors maintain their current positions while awaiting a more attractive entry point or further evidence of outperformance.
Business Strategy & Overview
Waste Management operates as a comprehensive waste management solutions provider, primarily serving North America. The company's core business revolves around the collection, transportation, processing, and disposal of waste and recyclable materials. WM generates revenue through a diversified service portfolio, including residential, commercial, and industrial waste collection, landfill operations, recycling services, and other related environmental solutions. The company's strategic focus is on maximizing operational efficiency, expanding its service offerings, and leveraging technology to enhance its competitive advantage.
A key element of WM's strategy is its integrated network of assets, which includes collection routes, transfer stations, material recovery facilities (MRFs), and landfills. This vertically integrated model allows the company to control the entire waste management value chain, enabling it to optimize costs and improve service delivery. Furthermore, WM actively pursues strategic acquisitions to expand its geographic footprint and enhance its service capabilities. These acquisitions often target smaller, regional players, allowing WM to consolidate its market share and realize synergies.
Innovation and sustainability are increasingly important aspects of WM's business strategy. The company is investing in technologies to improve waste processing efficiency, reduce environmental impact, and generate renewable energy from landfill gas. WM is also focused on expanding its recycling services and promoting waste reduction initiatives to meet growing demand for sustainable waste management solutions. This commitment to sustainability not only enhances the company's reputation but also creates new revenue opportunities.
The waste management industry is characterized by high barriers to entry, including significant capital requirements for landfills and processing facilities, stringent regulatory requirements, and the need for established relationships with municipalities and commercial customers. These barriers to entry provide WM with a significant competitive advantage, allowing it to maintain its leading market position. The company's scale, geographic reach, and comprehensive service offerings further solidify its competitive moat.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
19.3%
Sector: 6.4%
+202% VS SCTR
Economic Moat Analysis
Waste Management possesses a Wide economic moat, primarily derived from its efficient scale and intangible assets. The waste management industry inherently favors large, established players due to the significant capital expenditures required for landfill development and the regulatory hurdles involved in obtaining permits. The sheer scale of WM's operations, with its extensive network of landfills, transfer stations, and processing facilities, creates a cost advantage that is difficult for smaller competitors to replicate. This efficient scale allows WM to operate more profitably and offer competitive pricing, further reinforcing its market dominance.
Intangible assets, particularly the permits and licenses required to operate landfills and waste processing facilities, also contribute significantly to WM's moat. These permits are difficult to obtain and represent a valuable asset that protects WM from new entrants. The regulatory environment surrounding waste management is complex and stringent, creating a barrier to entry for companies lacking the expertise and resources to navigate the permitting process. WM's long-standing relationships with regulatory agencies and its proven track record of compliance further enhance its competitive advantage.
While network effects are not a primary driver of WM's moat, the company's extensive collection network and established relationships with municipalities and commercial customers create a degree of customer stickiness. Switching costs for customers can be relatively high, as changing waste management providers often involves logistical challenges and potential disruptions to service. This customer inertia provides WM with a stable revenue base and reduces the risk of customer churn.
The combination of efficient scale, intangible assets in the form of permits and licenses, and moderate customer switching costs creates a formidable barrier to entry that protects WM's market position and profitability. While the waste management industry is not immune to competition, WM's wide moat provides it with a significant and sustainable competitive advantage over its rivals. This moat allows the company to generate consistent cash flows and earn above-average returns on invested capital over the long term.
Financial Health & Profitability
Waste Management exhibits a relatively strong financial profile, characterized by consistent revenue growth, healthy margins, and robust cash flow generation. The company's revenue has steadily increased over the past several years, driven by organic growth, strategic acquisitions, and price increases. The recent revenue growth of 19.3% compared to the sector average of 6.6% highlights WM's ability to outperform its peers. This growth is further evidenced by the quarterly revenue figures, which show a consistent upward trend from FY2023 to FY2025.
WM's profitability metrics are also impressive, with gross margins, operating margins, and net margins all significantly exceeding sector averages. The company's gross margin of 39.9% compares favorably to the sector average of 35.8%, while its operating margin of 17.5% is substantially higher than the sector average of 6.2%. This superior profitability reflects WM's efficient operations, cost management efforts, and pricing power. The net margin of 11.2% further underscores the company's ability to translate revenue into earnings.
However, WM's balance sheet reveals a relatively high level of debt. The company's total debt of $22.91 billion is significantly higher than its total cash of $175 million, resulting in a high debt-to-equity ratio of 359.00 compared to the sector average of 70.00. While WM's strong cash flow generation provides it with the capacity to service its debt obligations, the high leverage increases its financial risk and sensitivity to interest rate fluctuations. The current ratio of 0.89 indicates potential short-term liquidity concerns, as current liabilities slightly exceed current assets.
Despite the high debt levels, WM's free cash flow generation remains robust, providing the company with ample resources to invest in growth initiatives, return capital to shareholders, and deleverage its balance sheet. The company's strong financial performance and consistent cash flow generation support its investment-grade credit rating and provide it with financial flexibility to navigate economic cycles. However, investors should closely monitor WM's debt levels and its ability to maintain its strong financial performance in the face of potential economic headwinds.
Valuation Assessment
Waste Management's valuation appears relatively rich compared to its peers and historical averages. The company's P/E ratio of 34.4x is significantly higher than the sector average of 27.7x, suggesting that investors are paying a premium for WM's earnings. Similarly, its EV/EBITDA multiple of 5.4x is slightly below the sector average of 5.7x, but this does not necessarily indicate undervaluation, as EBITDA can be influenced by accounting choices and capital structure.
Considering WM's strong growth prospects and dominant market position, a premium valuation is arguably justified. The company's consistent revenue growth, high profitability, and robust cash flow generation warrant a higher multiple than its less-performing peers. However, the current valuation appears to fully price in these strengths, limiting potential upside for investors at this juncture. The market seems to be anticipating continued strong performance from WM, leaving little room for error or disappointment.
A discounted cash flow (DCF) analysis would be necessary to determine a more precise intrinsic value for WM. However, based on the available data and the company's current valuation multiples, it appears that the stock is fairly valued to slightly overvalued. The market is likely pricing in expectations for continued growth and profitability, as well as the company's ability to maintain its competitive advantage. Any slowdown in growth or deterioration in profitability could lead to a significant correction in the stock price.
While WM's strong fundamentals and positive outlook support its current valuation, investors should exercise caution and consider the potential risks associated with paying a premium for the stock. A more attractive entry point may emerge if the stock price declines or if the company's growth accelerates beyond current expectations. In the meantime, a Hold rating is appropriate, suggesting that investors maintain their current positions while awaiting a more favorable valuation or further evidence of outperformance.
Risk & Uncertainty
Waste Management faces several specific risks that could potentially impact its business and financial performance. One of the primary risks is regulatory uncertainty. The waste management industry is heavily regulated at the federal, state, and local levels, and changes in environmental regulations could increase compliance costs, restrict landfill capacity, or require significant investments in new technologies. Stricter regulations on waste disposal, recycling, and emissions could negatively impact WM's profitability and competitive position.
Another significant risk is competition. While WM enjoys a dominant market position, it still faces competition from other large waste management companies, as well as smaller regional players. Increased competition could lead to price wars, reduced market share, and lower profitability. The emergence of new technologies or alternative waste management solutions could also disrupt the industry and erode WM's competitive advantage.
Economic cycles pose a risk to WM's business, as waste generation is correlated with economic activity. A slowdown in economic growth or a recession could lead to reduced waste volumes, lower revenue, and decreased profitability. Commercial and industrial customers may reduce their waste disposal spending during economic downturns, impacting WM's revenue stream. Furthermore, fluctuations in commodity prices can affect the profitability of WM's recycling operations.
Environmental liabilities represent another potential risk for WM. The company operates numerous landfills and waste processing facilities, which are subject to environmental risks such as groundwater contamination, air emissions, and soil pollution. Environmental remediation costs can be significant and unpredictable, potentially impacting WM's financial performance. The company also faces the risk of lawsuits and regulatory fines related to environmental violations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWWaste Management's dominant market share and vertically integrated operations provide a sustainable competitive advantage, ensuring consistent revenue and profit growth.
BULL VIEWThe company's commitment to sustainability and technological innovation will drive long-term growth and enhance its reputation, attracting environmentally conscious customers and investors.
BULL VIEWWM's strong free cash flow generation allows it to invest in strategic acquisitions and return capital to shareholders through dividends and share repurchases, creating value for investors.
The Bear Case
BEAR VIEWWaste Management's high debt levels increase its financial risk and sensitivity to interest rate fluctuations, potentially limiting its ability to invest in growth opportunities.
BEAR VIEWThe company's rich valuation fully prices in its growth prospects, leaving little room for error or disappointment, and making the stock vulnerable to a correction.
BEAR VIEWIncreased competition and regulatory uncertainty could erode WM's market share and profitability, negatively impacting its financial performance and stock price.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score WM and 4,400+ other equities.
WASTE MANAGEMENT INC exhibits a 313% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.9%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
39.9%
Sector: 35.8%
Operating Margin
Core business profitability
17.5%
Sector: 6.2%
Net Margin
Bottom-line profitability
11.2%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $146 annually in dividends at the current trailing rate.
