📊 WM Key Takeaways
Is Waste Management Inc. (WM) a Good Investment?
Waste Management demonstrates strong revenue growth of 14.2% YoY and healthy free cash flow generation of $851M, but concerning margin compression where net income remains flat despite significant revenue expansion signals operational deterioration. High leverage (2.22x Debt/Equity) combined with weak liquidity (0.93x current ratio) and low returns on capital (ROE 7.2%, ROA 1.6%) create financial risks that offset growth momentum.
Waste Management shows strong core fundamentals with double-digit revenue growth, healthy operating profitability, and solid free cash flow generation. The business appears high quality and resilient, but flat net income, elevated leverage, and weak liquidity keep the outlook from being more aggressive.
Waste Management Inc. Key Strengths (WM)
- Strong revenue growth of 14.2% YoY indicates market momentum and pricing power in core waste management business
- Robust free cash flow generation of $851M with 13.7% FCF margin provides reliable cash for debt service and capital investment
- Solid operating margin of 17.9% demonstrates operational efficiency despite challenges in net margin conversion
- Strong revenue growth of 14.2% with maintained operating margin of 17.1%
- Robust cash generation with $6.04B operating cash flow and $2.82B free cash flow
- High returns on equity and assets, indicating efficient use of capital in a stable business model
WM Stock Risks: Waste Management Inc. Investment Risks
- Net income flat despite 14.2% revenue growth signals concerning margin compression and deteriorating operational or cost efficiency
- High financial leverage with Debt/Equity of 2.22x and $22.2B long-term debt limits financial flexibility and refinancing options
- Weak liquidity position with current ratio of 0.93x and low cash reserves of $158M relative to substantial debt obligations and company scale
- High leverage with debt-to-equity of 2.22x and $22.20B in long-term debt
- Current ratio of 0.89x indicates limited near-term balance sheet flexibility
- Net income was essentially flat and diluted EPS declined 1.6%, suggesting growth is not fully translating to shareholders
Key Metrics to Watch
- Net profit margin trend and operating expense ratio - indicating whether margin compression can be arrested
- Debt reduction trajectory and interest coverage ratio - assessing deleveraging progress and debt serviceability
- Free cash flow sustainability - ensuring cash generation supports debt obligations amid operational challenges
- Free cash flow conversion after capital expenditures
- Debt reduction and interest coverage trend
Waste Management Inc. (WM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
WM Profit Margin, ROE & Profitability Analysis
WM vs Market Sector: How Waste Management Inc. Compares
How Waste Management Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Waste Management Inc. Stock Overvalued? WM Valuation Analysis 2026
Based on fundamental analysis, Waste Management Inc. shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Waste Management Inc. Balance Sheet: WM Debt, Cash & Liquidity
WM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Waste Management Inc.'s revenue has grown significantly by 41% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.66 reflects profitable operations.
WM Revenue Growth, EPS Growth & YoY Performance
WM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $6.0B | $637.0M | $1.58 |
| Q3 2025 | $5.6B | $603.0M | $1.49 |
| Q2 2025 | $5.4B | $680.0M | $1.69 |
| Q1 2025 | $5.2B | $637.0M | $1.58 |
| Q3 2024 | $5.2B | $663.0M | $1.63 |
| Q2 2024 | $5.1B | $615.0M | $1.51 |
| Q1 2024 | $4.9B | $533.0M | $1.30 |
| Q3 2023 | $5.1B | $639.0M | $1.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Waste Management Inc. Dividends, Buybacks & Capital Allocation
WM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Waste Management Inc. (CIK: 0000823768)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WM
What is the AI rating for WM?
Waste Management Inc. (WM) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are WM's key strengths?
Claude: Strong revenue growth of 14.2% YoY indicates market momentum and pricing power in core waste management business. Robust free cash flow generation of $851M with 13.7% FCF margin provides reliable cash for debt service and capital investment. ChatGPT: Strong revenue growth of 14.2% with maintained operating margin of 17.1%. Robust cash generation with $6.04B operating cash flow and $2.82B free cash flow.
What are the risks of investing in WM?
Claude: Net income flat despite 14.2% revenue growth signals concerning margin compression and deteriorating operational or cost efficiency. High financial leverage with Debt/Equity of 2.22x and $22.2B long-term debt limits financial flexibility and refinancing options. ChatGPT: High leverage with debt-to-equity of 2.22x and $22.20B in long-term debt. Current ratio of 0.89x indicates limited near-term balance sheet flexibility.
What is WM's revenue and growth?
Waste Management Inc. reported revenue of $6.2B.
Does WM pay dividends?
Waste Management Inc. pays dividends, with $385.0M distributed to shareholders in the trailing twelve months.
Where can I find WM SEC filings?
Official SEC filings for Waste Management Inc. (CIK: 0000823768) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WM's EPS?
Waste Management Inc. has a diluted EPS of $1.79.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is WM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Waste Management Inc. has a A grade with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WM stock overvalued or undervalued?
Valuation metrics for WM: ROE of 7.2% (sector avg: 15%), net margin of 11.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is WM's AI grade for 2026?
Our dual AI analysis gives Waste Management Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WM's free cash flow?
Waste Management Inc.'s operating cash flow is $1.5B, with capital expenditures of $650.0M. FCF margin is 13.7%.
How does WM compare to other Market stocks?
Vs Default sector averages: Net margin 11.6% (avg: 12%), ROE 7.2% (avg: 15%), current ratio 0.93 (avg: 1.8).
Is Waste Management Inc. carrying too much debt?
WM has a debt-to-equity ratio of 2.22x, which is above the Market sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.