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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1017
Positioning
Market Dominance
Services
Business Services
$89.0B
James C. Fish
Waste Management, Inc. provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It owns, develops, and operates landfill gas-to-energy facilities in the United States. As of December 31, 2021, the company owned or operated 255 solid waste landfills.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = WM ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | 21.3% | 18.6% | 64.5% | 35.7% | 39.5% | 6.5% | 0.0% | 0.0x | $644M | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | 15.4% | 12.6% | 38.7% | 17.1% | 17.0% | -39.7% | 0.0% | 0.0x | $439M | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 28.1% | 16.8% | 48.1% | 23.8% | 18.5% | 78.6% | 0.0% | 37.0x | $220M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | 12.4% | 2.9% | 100.0% | 28.2% | 26.2% | 5.5% | 0.8% | 264.0x | $19.4B | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.6% | 7.8% | 43.8% | 7.4% | 5.9% | 31.2% | 0.0% | 0.0x | $857M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 18.0% | 4.6% | 97.3% | 52.2% | 32.7% | -3.4% | 0.0% | 271.0x | $8.0B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | 9.4% | 4.9% | 55.5% | 8.7% | 7.7% | 13.6% | 1.3% | 7.0x | $78.0B | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | 22.1% | 15.6% | 62.5% | 28.1% | 28.7% | -1.0% | 2.8% | 9.0x | $56.6B | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 21.4% | 8.0% | 100.0% | 10.0% | 7.5% | 14.1% | 0.0% | 27.0x | $1.8B | VS | |
$WM WASTE MANAGEMENT INC | 57 | 46 | 49 | 71 | 34.1x | 19.2x | 27.3% | 5.9% | 39.9% | 17.5% | 11.2% | 19.3% | 1.5% | 359.0x | $89.0B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.3% | 1.9% | 59.6% | 3.5% | 2.3% | 7.8% | 0.0% | 0.3x | - | REF |
WASTE MANAGEMENT INC (WM) receives a "Hold" rating with a composite score of 57.1/100. It ranks #1017 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
James C. Fish
Chief Executive Officer
Labor Force
49,500
46
26
97
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for WM
Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for WM.
View All RatingsMaterial decline in asset turnover efficiency detected
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 46 | 47 | -1NEUTRAL |
| MOMENTUM | 71 | 80 | -9DRAG |
| VALUATION | 49 | 51 | -2NEUTRAL |
| INVESTMENT | 26 | 17 | +9ALPHA |
| STABILITY | 97 | 100 | -3NEUTRAL |
| SHORT INT | 59 | 74 | -15DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 15.5% vs WACC 8.6% (spread +6.9%)
GM 40% vs sector 60%, OM 18% vs sector 4%
Capital turnover 1.09x
Rev growth 19%, 10yr history
Interest coverage N/A, Net debt/EBITDA 5.4x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our model assigns WASTE MANAGEMENT INC a Hold rating, with a composite score of 57.1/100 and 3 out of 5 stars. Ranked #1017 of 7,333 stocks, WM presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 46/100, WM shows adequate but unremarkable business quality. The company reports a return on equity of 27.3% (sector avg: 5.3%), gross margins of 39.9% (sector avg: 59.6%), net margins of 11.2% (sector avg: 2.3%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
With a value score of 49/100, WM appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 34.06x, an EV/EBITDA of 19.21x, a P/B ratio of 9.30x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
WASTE MANAGEMENT INC's investment score of 26/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 19.3% vs. a sector average of 7.8% and a return on assets of 5.9% (sector: 1.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
WM shows strong momentum characteristics with a score of 71/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 19.3% year-over-year, while a beta of 0.20 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
WASTE MANAGEMENT INC earns an excellent stability score of 97/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.20 and a debt-to-equity ratio of 359.00x (sector avg: 0.3x). Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
The short interest score of 59/100 for WM suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 359.00x). With a $89.0B market cap (large-cap), WASTE MANAGEMENT INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
WM offers a modest dividend yield of 1.5%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
WASTE MANAGEMENT INC is a large-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #1017 of 7,333 overall (86th percentile). Key comparisons include ROE of 27.3% exceeding the 5.3% sector median and operating margins of 17.5% above the 3.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While WM currently exhibits a HOLD profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
Key factor gap
Stability (97) vs Investment (26) — closing this gap could shift the rating.
EV/EBITDA 64% ABOVE SECTOR MEDIAN
ROE 414% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 33% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate WASTE MANAGEMENT INC (WM) as a Hold with a composite score of 57.1/100 at a current price of $229.58. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.
The rating is primarily driven by strength in stability (97th percentile) and momentum (71th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (26th percentile) and quality (46th percentile) tempers our overall conviction. We assign a Narrow Moat rating (45/100), Medium uncertainty, and Poor capital allocation.
Key items to watch: balance sheet deleveraging progress. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
WASTE MANAGEMENT INC holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 57.1/100 places it at rank #1017 in our full 7,333-stock universe. With a $89.0B market capitalization, WASTE MANAGEMENT INC operates at meaningful scale within the Services sector, providing competitive advantages in distribution, procurement, and customer reach.
The near-term outlook is constructive, with revenue growing at 19% and momentum in the 71th percentile confirming positive market sentiment and institutional accumulation. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy. Investment factor at the 26th percentile indicates reinvestment patterns that investors should monitor for sustainability.
The margin cascade tells an important story: gross margins of 40% (-19.7pp vs sector) narrow to operating margins of 18% (+14.0pp vs sector) and net margins of 11.2%, yielding a gross-to-net conversion rate of 28%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.
At a current price of $229.58, WASTE MANAGEMENT INC is trading near fair value based on current fundamentals. Our value factor score of 49/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 34.1x (a 43% premium to the sector median of 23.7x), EV/EBITDA of 19.2x (at a premium), P/B of 9.3x, P/S of 3.8x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.
Returns on equity of 27.3% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
Revenue growth of 19% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
Positive momentum (71th percentile) indicates institutional accumulation and favorable technical dynamics that tend to persist in the intermediate term.
Elevated leverage (359% D/E) amplifies downside risk and limits management's financial flexibility in adverse scenarios.
We assign a Medium uncertainty rating to WASTE MANAGEMENT INC. The stock presents a balanced risk profile: significant leverage (359% debt-to-equity) and low beta of 0.20 — while defensive, this may indicate limited upside participation in bull markets. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: significant leverage (359% debt-to-equity); low beta of 0.20 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 97th percentile and quality factor at the 46th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: above-average stability (97th percentile) suggests predictable business dynamics; large-cap scale ($89.0B) provides resilience. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate WASTE MANAGEMENT INC's capital allocation as Poor. Key concerns include elevated leverage (359% D/E). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — WASTE MANAGEMENT INC significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, WASTE MANAGEMENT INC receives a Hold rating with a composite score of 57.1/100 (rank #1017 of 7,333). Our quantitative framework assigns a Narrow Moat (45/100, trend: stable), Medium uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 58/100.
Our analysis supports a neutral stance on WASTE MANAGEMENT INC. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign WASTE MANAGEMENT INC a Narrow Moat rating with a composite moat score of 45/100. The ROIC-WACC spread of +6.9% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that WASTE MANAGEMENT INC can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being growth durability at 13.9/20.
The strongest moat sources are growth durability (13.9/20) and economic value creation (12.3/20). Rev growth 19%, 10yr history. ROIC 15.5% vs WACC 8.6% (spread +6.9%). These pillars form the core of WASTE MANAGEMENT INC's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (2.3/20) and financial resilience (4.2/20). Capital turnover 1.09x. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect WASTE MANAGEMENT INC's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 40% providing a solid profitability foundation, operating margins of 18% reflecting effective cost management, robust top-line growth of 19% expanding the revenue base. The margin cascade from 40% gross to 18% operating to 11.2% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 46th percentile.
The margin profile shows gross margins of 40%, operating margins of 18%, net margins of 11.2%. Return metrics include ROE of 27.3% and ROA of 5.9%. Relative to the Services sector, gross margins are 19.7 percentage points below the sector median of 60%, and ROE of 27.3% compares to a sector median of 5.3%.
The balance sheet reflects high leverage with D/E of 359%, which may limit financial flexibility, a dividend yield of 1.46%, revenue growth of 19%. The sector median D/E is 0%, putting WASTE MANAGEMENT INC at higher leverage than the typical peer. Elevated leverage in combination with the current margin profile warrants close monitoring for any deterioration in debt-servicing capacity.
Above 50MA
37.18%
Net New Highs
+51081
Amid geopolitical tensions, Federal Reserve uncertainty, and regulatory pressures, investors are advised to adopt a defensive portfolio strategy focusing on three pillars: gold for currency protection, defense stocks for geopolitical hedging, and waste management for recession-proof income. The article recommends avoiding consumer credit exposure due to regulatory credit caps and default risks.
Waste Management (WM) and Cintas (CTAS) are presented as buy-the-dip opportunities after declining 10% and 14% respectively from their 2025 highs. Both S&P 500 dividend stocks have strong competitive moats, consistent dividend growth histories, and long-term track records of outperforming the broader market, despite trading at elevated valuations.
Republic Services reported Q4 2026 EPS above expectations but missed on revenue. The company guided for 3% YOY growth in 2026 revenue and EPS while announcing $1 billion in planned acquisitions. However, softer operating cash flow and potential free cash flow pressure from CapEx spending have raised investor concerns, causing the stock to decline despite the company's position as a defensive play in the waste management duopoly.
Key opportunities in the waste management market include regulatory-driven growth, circular economy investments, smart waste tech, digital tracking, advanced recycling, remediation tools, and PFAS solutions. Expanding mining and acquisitions enhance market potential, especially in Western Europe and Asia-Pacific. Waste Management and Remediation Services Market Waste Management and Remediation Services Market Dublin, Feb. 20, 2026 (GLOBE NEWSWIRE) -- The "Waste Management and Remediation Service
Waste Management's integration of Stericycle's medical waste business shows mixed results. While core collection margins hit record 38.4% and free cash flow grew 33%, the healthcare segment underperformed expectations due to pricing delays and ERP challenges. Revenue missed forecasts at $6.44B, though the company announced a 14.5% dividend increase and $3B buyback authorization for 2026.