Waste Management, Inc. (WM) AI Stock Analysis

Waste Management, Inc., originally founded as USA Waste Services, Inc., provides environmental solutions across the United States and Canada. It offers comprehensive waste management services to residential, commercial, industrial, and municipal customers, covering waste and recyclables collection, transportation to transfer stations, material recovery facilities (MRFs), and disposal sites. As of December 31, 2022, the company owned and operated 254 solid waste landfills, five secure hazardous waste landfills, 97 MRFs, and 337 transfer stations. In addition, it utilizes landfill gas for renewable natural gas electricity generation, operates recycling brokerage services, and provides construction, remediation, and fly ash disposal.

Revenue expanded from $17.93B in FY2021 to $25.20B in FY2025, reflecting a 5-year revenue CAGR of 10.6% from FY2020 to FY2025. Gross margin widened from 26.9% in FY2021 to 29.1% in FY2025, while operating margin rose from 16.8% to 18.3%. Net income increased from $1.82B in FY2021 to $2.71B in FY2025, with EPS climbing from $4.85 to $7.50 over the period. For the trailing twelve months ending June 30, 2026, revenue totaled $25.67B with a profit margin of 11.1%. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.0% year-over-year, and quarterly earnings grew 8.3%.

As of June 30, 2026, Waste Management held $557.0M in cash and short-term investments against total debt of $23.36B, resulting in net debt of $22.80B. The balance sheet reflects a debt-to-equity ratio of 2.35 and a current ratio of 0.91, alongside shareholders' equity of $9.93B and total assets of $46.44B. In FY2025, operating cash flow was $6.04B, which supported capital expenditures of $3.23B, yielding free cash flow of $2.82B. Cash allocation in FY2025 included $1.33B in dividends paid, while the share count fell 4.1% over 5 years.

WM trades at a trailing P/E of 32.1x and a forward P/E of 22.5x, compared to medians of 28.4x and 20.1x for its S&P 500 Industrials peers. Its EV/EBITDA of 14.2x is lower than the peer median of 17.7x, while its price-to-sales multiple of 3.5x compares to 3.1x for the group. The company holds an enterprise value of $105.89B and a market cap of $90.68B. Over the past 1 year, the stock returned 8.1%, trailing the 16.8% return for the S&P 500 (SPY). Over 5 years, WM gained 55.2% against 83.0% for SPY.

Waste Management pays a quarterly dividend with an annualized forward payout of $3.78 per share, representing a dividend yield of 1.67%. The payout ratio stands at 47.3%, and the company has paid dividends for 29 consecutive years. The annualized 5-year dividend growth rate is 8.6%, with the last ex-dividend date on September 11, 2026.

Wall Street analysts maintain 16 Strong Buy, 3 Buy, and 9 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target is $253.52, which is 11.8% above the last close of $226.86. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $8.14 and revenue of $26.43B. Over the last four quarters, the company delivered 2 EPS beats, and its next earnings date is scheduled for October 27, 2026.

This page is an AI-written research summary of Waste Management, Inc. (WM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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