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Waste Management

NYSE:WM
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WM
NYSE
$40B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. The last earnings update was 45 days ago. More info.


Add to Portfolio Compare Print
  • Waste Management has significant price volatility in the past 3 months.
WM Share Price and Events
7 Day Returns
-3.1%
NYSE:WM
4.3%
US Commercial Services
10.5%
US Market
1 Year Returns
-8.3%
NYSE:WM
-15.3%
US Commercial Services
-11.5%
US Market
WM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Waste Management (WM) -3.1% -14% -16.2% -8.3% 30.7% 76.8%
US Commercial Services 4.3% -22.1% -24% -15.3% 7.6% 26%
US Market 10.5% -15.4% -21.4% -11.5% 5.4% 18.1%
1 Year Return vs Industry and Market
  • WM outperformed the Commercial Services industry which returned -15.3% over the past year.
  • WM outperformed the Market in United States of America which returned -11.5% over the past year.
Price Volatility
WM
Industry
5yr Volatility vs Market

WM Value

 Is Waste Management undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Waste Management to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Waste Management.

NYSE:WM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.604 (1 + (1- 21%) (34.54%))
0.845
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.845 * 5.44%)
6.34%

Discounted Cash Flow Calculation for NYSE:WM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Waste Management is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:WM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.34%)
2020 2,114.41 Analyst x11 1,988.38
2021 2,273.54 Analyst x10 2,010.60
2022 2,440.90 Analyst x3 2,029.94
2023 2,631.00 Analyst x1 2,057.62
2024 2,780.00 Analyst x1 2,044.57
2025 2,892.90 Est @ 4.06% 2,000.79
2026 2,990.24 Est @ 3.36% 1,944.84
2027 3,076.28 Est @ 2.88% 1,881.55
2028 3,154.30 Est @ 2.54% 1,814.28
2029 3,226.76 Est @ 2.3% 1,745.34
Present value of next 10 years cash flows $19,517.00
NYSE:WM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3,226.76 × (1 + 1.74%) ÷ (6.34% – 1.74%)
$71,397.74
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $71,397.74 ÷ (1 + 6.34%)10
$38,618.68
NYSE:WM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $19,517.00 + $38,618.68
$58,135.68
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $58,135.68 / 423.63
$137.23
NYSE:WM Discount to Share Price
Calculation Result
Value per share (USD) From above. $137.23
Current discount Discount to share price of $95.30
= -1 x ($95.30 - $137.23) / $137.23
30.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Waste Management is available for.
Intrinsic value
31%
Share price is $95.3 vs Future cash flow value of $137.23
Current Discount Checks
For Waste Management to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Waste Management's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Waste Management's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Waste Management's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Waste Management's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $3.93
NYSE:WM Share Price ** NYSE (2020-03-27) in USD $95.3
United States of America Commercial Services Industry PE Ratio Median Figure of 52 Publicly-Listed Commercial Services Companies 21.03x
United States of America Market PE Ratio Median Figure of 2,939 Publicly-Listed Companies 12.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Waste Management.

NYSE:WM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WM Share Price ÷ EPS (both in USD)

= 95.3 ÷ 3.93

24.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Waste Management is overvalued based on earnings compared to the US Commercial Services industry average.
  • Waste Management is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Waste Management's expected growth come at a high price?
Raw Data
NYSE:WM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
9.1%per year
United States of America Commercial Services Industry PEG Ratio Median Figure of 35 Publicly-Listed Commercial Services Companies 1.16x
United States of America Market PEG Ratio Median Figure of 2,005 Publicly-Listed Companies 1x

*Line of best fit is calculated by linear regression .

NYSE:WM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.23x ÷ 9.1%

2.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Waste Management is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Waste Management's assets?
Raw Data
NYSE:WM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $16.66
NYSE:WM Share Price * NYSE (2020-03-27) in USD $95.3
United States of America Commercial Services Industry PB Ratio Median Figure of 85 Publicly-Listed Commercial Services Companies 1.34x
United States of America Market PB Ratio Median Figure of 5,148 Publicly-Listed Companies 1.26x
NYSE:WM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WM Share Price ÷ Book Value per Share (both in USD)

= 95.3 ÷ 16.66

5.72x

* Primary Listing of Waste Management.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Waste Management is overvalued based on assets compared to the US Commercial Services industry average.
X
Value checks
We assess Waste Management's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Waste Management has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WM Future Performance

 How is Waste Management expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Waste Management expected to grow at an attractive rate?
  • Waste Management's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Waste Management's earnings growth is positive but not above the United States of America market average.
  • Waste Management's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 9.1%
NYSE:WM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 2.3%
United States of America Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 16,342 1
2023-12-31 15,707 1
2022-12-31 16,944 4,205 2,155 5
2021-12-31 16,650 4,094 2,048 14
2020-12-31 16,003 3,789 1,868 15
2020-03-29
NYSE:WM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 15,455 3,874 1,670
2019-09-30 15,451 3,764 1,754
2019-06-30 15,306 3,686 1,758
2019-03-31 15,099 3,651 1,876
2018-12-31 14,914 3,570 1,925
2018-09-30 14,724 3,450 2,297
2018-06-30 14,618 3,429 2,184
2018-03-31 14,556 3,267 2,047
2017-12-31 14,485 3,180 1,949
2017-09-30 14,293 3,142 1,381
2017-06-30 14,125 3,047 1,297
2017-03-31 13,873 2,996 1,222

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Waste Management's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).
  • Waste Management's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Waste Management Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 5.25 5.45 5.05 2.00
2021-12-31 4.91 5.06 4.76 8.00
2020-12-31 4.39 4.61 3.53 9.00
2020-03-29
NYSE:WM Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 3.93
2019-09-30 4.13
2019-06-30 4.13
2019-03-31 4.39
2018-12-31 4.49
2018-09-30 5.33
2018-06-30 5.03
2018-03-31 4.69
2017-12-31 4.44
2017-09-30 3.14
2017-06-30 2.94
2017-03-31 2.76

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Waste Management is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Waste Management's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Waste Management has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WM Past Performance

  How has Waste Management performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Waste Management's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Waste Management's year on year earnings growth rate has been positive over the past 5 years.
  • Waste Management's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Waste Management's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.
Earnings and Revenue History
Waste Management's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Waste Management Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 15,455.00 1,670.00 1,631.00
2019-09-30 15,451.00 1,754.00 1,556.00
2019-06-30 15,306.00 1,758.00 1,515.00
2019-03-31 15,099.00 1,876.00 1,489.00
2018-12-31 14,914.00 1,925.00 1,453.00
2018-09-30 14,724.00 2,297.00 1,452.00
2018-06-30 14,618.00 2,184.00 1,463.00
2018-03-31 14,556.00 2,047.00 1,451.00
2017-12-31 14,485.00 1,949.00 1,468.00
2017-09-30 14,293.00 1,381.00 1,477.00
2017-06-30 14,125.00 1,297.00 1,451.00
2017-03-31 13,873.00 1,222.00 1,438.00
2016-12-31 13,609.00 1,182.00 1,410.00
2016-09-30 13,395.00 1,120.00 1,375.00
2016-06-30 13,207.00 1,153.00 1,375.00
2016-03-31 13,097.00 1,140.00 1,357.00
2015-12-31 12,961.00 753.00 1,343.00
2015-09-30 13,152.00 1,070.00 1,345.00
2015-06-30 13,394.00 1,005.00 1,392.00
2015-03-31 13,640.00 941.00 1,423.00
2014-12-31 13,996.00 1,298.00 1,481.00
2014-09-30 14,059.00 103.00 1,481.00
2014-06-30 14,078.00 124.00 1,453.00
2014-03-31 14,043.00 158.00 1,453.00
2013-12-31 13,983.00 98.00 1,468.00
2013-09-30 13,917.00 927.00 1,448.00
2013-06-30 13,757.00 850.00 1,434.00
2013-03-31 13,690.00 814.00 1,455.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Waste Management has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Waste Management used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.
  • Waste Management's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Waste Management's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Waste Management has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WM Health

 How is Waste Management's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Waste Management's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Waste Management is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Waste Management's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Waste Management's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Waste Management Company Filings, last reported 2 months ago.

NYSE:WM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 7,070.00 13,139.00 3,561.00
2019-09-30 6,787.00 13,032.00 2,915.00
2019-06-30 6,467.00 12,410.00 2,250.00
2019-03-31 6,417.00 10,159.00 57.00
2018-12-31 6,276.00 9,559.00 61.00
2018-09-30 6,241.00 10,016.00 83.00
2018-06-30 6,056.00 9,796.00 47.00
2018-03-31 6,065.00 9,957.00 52.00
2017-12-31 6,042.00 9,164.00 22.00
2017-09-30 5,300.00 9,345.00 35.00
2017-06-30 5,507.00 9,057.00 32.00
2017-03-31 5,538.00 9,042.00 30.00
2016-12-31 5,320.00 9,310.00 32.00
2016-09-30 5,383.00 9,261.00 30.00
2016-06-30 5,228.00 9,530.00 39.00
2016-03-31 5,310.00 9,596.00 104.00
2015-12-31 5,367.00 8,929.00 39.00
2015-09-30 5,257.00 9,050.00 113.00
2015-06-30 5,407.00 9,106.00 273.00
2015-03-31 5,575.00 9,207.00 277.00
2014-12-31 5,889.00 9,435.00 1,307.00
2014-09-30 5,663.00 10,164.00 183.00
2014-06-30 6,147.00 9,797.00 137.00
2014-03-31 6,039.00 10,194.00 339.00
2013-12-31 6,002.00 10,254.00 235.00
2013-09-30 7,015.00 10,090.00 157.00
2013-06-30 6,818.00 9,800.00 154.00
2013-03-31 6,716.00 10,049.00 307.00
  • Waste Management's level of debt (185.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (160.3% vs 185.8% today).
  • Debt is well covered by operating cash flow (29.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).
X
Financial health checks
We assess Waste Management's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Waste Management has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WM Dividends

 What is Waste Management's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.29%
Current annual income from Waste Management dividends. Estimated to be 2.4% next year.
If you bought $2,000 of Waste Management shares you are expected to receive $46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Waste Management's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.98%).
  • Waste Management's dividend is below the markets top 25% of dividend payers in United States of America (5.45%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 41 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1949 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 2.47 3.00
2021-12-31 2.34 8.00
2020-12-31 2.18 8.00
2020-03-29
NYSE:WM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-18 2.180 2.005
2020-02-13 2.180 1.738
2019-11-19 2.050 1.764
2019-08-19 2.050 1.788
2019-05-14 2.050 1.789
2018-12-13 2.050 2.085
2018-11-12 1.860 2.026
2018-10-25 1.860 2.111
2018-05-14 1.860 2.142
2017-12-14 1.860 2.191
2017-11-06 1.700 2.065
2017-08-25 1.700 2.178
2017-05-12 1.700 2.301
2016-12-15 1.700 2.371
2016-11-10 1.640 2.363
2016-08-25 1.640 2.583
2016-05-11 1.640 2.549
2016-02-26 1.640 2.820
2016-02-18 1.640 2.932
2015-11-09 1.540 2.903
2015-08-20 1.540 2.991
2015-05-11 1.540 3.134
2015-02-24 1.540 2.898
2015-02-17 1.540 2.830
2014-11-10 1.500 2.957
2014-08-21 1.500 3.168
2014-05-12 1.500 3.369
2014-02-18 1.500 3.586
2013-11-12 1.460 3.340
2013-08-22 1.460 3.488
2013-05-09 1.460 3.516
2012-12-11 1.460 3.967
2012-11-06 1.420 4.394
2012-08-24 1.420 4.314
2012-05-10 1.420 4.274
2011-12-09 1.420 4.142
2011-11-08 1.360 4.386
2011-08-23 1.360 4.220
2011-05-13 1.360 3.867
2010-12-16 1.360 3.627
2010-11-09 1.260 3.585
2010-08-20 1.260 3.576
2010-05-11 1.260 3.813
2010-01-11 1.260 3.734
2009-11-10 1.160 3.490
2009-08-25 1.160 3.846
2009-05-08 1.160 4.104

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Waste Management's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Waste Management's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Waste Management afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Waste Management has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WM Management

 What is the CEO of Waste Management's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Fish
COMPENSATION $9,125,281
AGE 57
TENURE AS CEO 3.3 years
CEO Bio

Mr. James C. Fish, Jr., also known as Jim, has been the Chief Executive Officer of Waste Management, Inc. since November 11, 2016 and as has been its President since July 27, 2016. Mr. Fish served as Executive Vice President of Waste Management, Inc. from August 2012 to July 27, 2016, and also served as its Chief Financial Officer since August 2012 until November 18, 2016. He served as Senior Vice President of Eastern Group Operations at Waste Management, Inc. since June 13, 2011 until August 2012. Mr. Fish served as Area Vice President of Pennsylvania and West Virginia Market at Waste Management from 2009 to 2011. He joined Waste Management in 2001 as Director of Financial Planning and Analysis and also served as Vice President of Price Management and was responsible for running its pricing excellence programs. He served as Market Area General Manager — Western Pennsylvania/West Virginia from 2008 to 2009 and Rhode Island/Southern Massachusetts from 2006 to 2008. Mr. Fish held finance or revenue management positions at Westex, a Yellow Corporation subsidiary; Trans World Airlines, Inc. and America West Airlines, Inc. He began his professional career at KPMG Peat Marwick. Mr. Fish has been a Director of Waste Management, Inc. since November 11, 2016. He serves as a Director of Greater Houston Partnership, Inc. He earned a Bachelor of Science degree in accounting from Arizona State University and his MBA in finance from the University of Chicago. Mr. Fish is a Certified Public Accountant.

CEO Compensation
  • Jim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Waste Management management team in years:

2.4
Average Tenure
46
Average Age
  • The tenure for the Waste Management management team is about average.
Management Team

Jim Fish

TITLE
President
COMPENSATION
$9M
AGE
57
TENURE
3.3 yrs

Devina Rankin

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
43
TENURE
3 yrs

John Morris

TITLE
Executive VP & COO
COMPENSATION
$3M
AGE
49
TENURE
1.2 yrs

Leslie Nagy

TITLE
VP & Chief Accounting Officer
AGE
45
TENURE
2.3 yrs

Ed Egl

TITLE
Director of Investor Relations

Chuck Boettcher

TITLE
Executive VP of Corporate Development & Chief Legal Officer
AGE
45
TENURE
3.2 yrs

Tamla Oates-Forney

TITLE
Senior VP & Chief Human Resources Officer
AGE
47
TENURE
1.3 yrs

Tara Hemmer

TITLE
Senior Vice President of Operations
AGE
46
TENURE
8 yrs

Nikolaj Sjoqvist

TITLE
Senior VP & Chief Digital Officer
AGE
46
TENURE
2.4 yrs

Michael Watson

TITLE
Senior VP & Chief Customer Officer
AGE
49
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Waste Management board of directors in years:

5.2
Average Tenure
61
Average Age
  • The tenure for the Waste Management board of directors is about average.
Board of Directors

Tom Weidemeyer

TITLE
Non-Executive Independent Chairman
COMPENSATION
$406K
AGE
71
TENURE
1.9 yrs

Jim Fish

TITLE
President
COMPENSATION
$9M
AGE
57
TENURE
3.3 yrs

Frank Clark

TITLE
Independent Director
COMPENSATION
$285K
AGE
73
TENURE
17.4 yrs

Pat Gross

TITLE
Independent Director
COMPENSATION
$290K
AGE
74
TENURE
13.8 yrs

Kathleen Mazzarella

TITLE
Independent Director
COMPENSATION
$275K
AGE
59
TENURE
4.4 yrs

Jack Pope

TITLE
Independent Director
COMPENSATION
$265K
AGE
70
TENURE
23.2 yrs

Vicki Holt

TITLE
Independent Director
COMPENSATION
$265K
AGE
61
TENURE
7.2 yrs

Andrés Ricardo Gluski Weilert

TITLE
Independent Director
COMPENSATION
$265K
AGE
61
TENURE
5.2 yrs

Bill Plummer

TITLE
Independent Director
AGE
60
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • Waste Management individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Feb 20 Sell Devina Rankin Individual 25. Feb 20 25. Feb 20 -8,000 $125.14 $-1,001,125
21. Nov 19 Sell Michael Watson Individual 21. Nov 19 21. Nov 19 -1,000 $112.00 $-112,000
09. May 19 Sell Michael Watson Individual 07. May 19 07. May 19 -700 $104.55 $-73,182
X
Management checks
We assess Waste Management's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Waste Management has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WM News

Simply Wall St News

Be Sure To Check Out Waste Management, Inc. (NYSE:WM) Before It Goes Ex-Dividend

Check out our latest analysis for Waste Management Dividends are typically paid from company earnings. … Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. … Companies with growing earnings and low payout ratios are often the best long-term dividend stocks, as the company can both grow its earnings and increase the percentage of earnings that it pays out, essentially multiplying the dividend.

Simply Wall St -

Could The Waste Management, Inc. (NYSE:WM) Ownership Structure Tell Us Something Useful?

Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. … Check out our latest analysis for Waste Management NYSE:WM Ownership Summary, August 28th 2019 What Does The Institutional Ownership Tell Us About Waste Management? … Insider Ownership Of Waste Management While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Is Waste Management, Inc.'s (NYSE:WM) Stock Available For A Good Price After Accounting For Growth?

As the legendary value investor Ben Graham once said, “Price is what you pay, value is what you get.” Waste Management is trading at price-to-earnings (PE) ratio of 28.84x, which tells us the stock is overvalued based on current earnings compared to the Commercial Services industry average of 23.97x , and overvalued compared to the US market average ratio of 17.26x. … But, seeing as Waste Management is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … Based on this growth, Waste Management's stock can be considered overvalued , based on the fundamentals.

Simply Wall St -

Is Waste Management's (NYSE:WM) 156% Share Price Increase Well Justified?

During five years of share price growth, Waste Management achieved compound earnings per share (EPS) growth of 73% per year. … It is important to consider the total shareholder return, as well as the share price return, for any given stock. … A Different Perspective It's good to see that Waste Management has rewarded shareholders with a total shareholder return of 32% in the last twelve months.

Simply Wall St -

Does Waste Management (NYSE:WM) Have A Healthy Balance Sheet?

NYSE:WM Historical Debt, July 29th 2019 How Strong Is Waste Management's Balance Sheet? … During the last three years, Waste Management produced sturdy free cash flow equating to 65% of its EBIT, about what we'd expect. … Our View On our analysis Waste Management's conversion of EBIT to free cash flow should signal that it won't have too much trouble with its debt.

Simply Wall St -

Why Waste Management, Inc. (NYSE:WM) Should Be In Your Dividend Portfolio

NYSE:WM Historical Dividend Yield, July 18th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Waste Management paid out 43% of its profit as dividends. This is a medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. Plus, there is room to increase the payout ratio over time. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Of the free cash flow it generated last year, Waste Management paid out 43% as dividends, suggesting the dividend is affordable. It's positive to see that Waste Management's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is Waste Management's Balance Sheet Risky? As Waste Management has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Dividend Volatility Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. … Conclusion To summarise, shareholders should always check that Waste Management's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

A Look At The Fair Value Of Waste Management, Inc. (NYSE:WM)

Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $2.02k $2.20k $2.39k $2.76k $2.83k $2.91k $2.98k $3.06k $3.15k $3.23k Growth Rate Estimate Source Analyst x7 Analyst x6 Analyst x2 Analyst x1 Analyst x1 Est @ 2.62% Est @ 2.65% Est @ 2.68% Est @ 2.69% Est @ 2.7% Present Value ($, Millions) Discounted @ 7.9% $1.87k $1.89k $1.90k $2.04k $1.94k $1.84k $1.75k $1.67k $1.59k $1.51k Present Value of 10-year Cash Flow (PVCF)= $18.01b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … NYSE:WM Intrinsic value, June 26th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Have Insiders Been Selling Waste Management, Inc. (NYSE:WM) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Waste Management Waste Management Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the , Jeff Harris, for US$2.2m worth of shares, at about US$90.00 per share. … Insiders at Waste Management Have Sold Stock Recently Over the last three months, we've seen significant insider selling at Waste Management. … Insider Ownership of Waste Management Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders.

Simply Wall St -

Should We Be Delighted With Waste Management, Inc.'s (NYSE:WM) ROE Of 29%?

See our latest analysis for Waste Management How Do I Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Waste Management: 29% = US$1.9b ÷ US$6.4b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Waste Management's Debt And Its 29% ROE Waste Management clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.68.

Simply Wall St -

What Kind Of Investor Owns Most Of Waste Management, Inc. (NYSE:WM)?

View our latest analysis for Waste Management NYSE:WM Ownership Summary, May 18th 2019 What Does The Institutional Ownership Tell Us About Waste Management? … We can see that Waste Management does have institutional investors; and they hold 82% of the stock. … Insider Ownership Of Waste Management The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

WM Company Info

Description

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It provides 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, 2018, the company owned or operated 247 solid waste landfills; 5 secure hazardous waste landfills; 102 MRFs; and 314 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. Further, it offers fluorescent bulb and universal waste mail-back services through LampTracker program; portable restroom services under the Port-o-Let name; and street and parking lot sweeping services, as well as holds interests in oil and gas producing properties. 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.

Details
Name: Waste Management, Inc.
WM
Exchange: NYSE
Founded: 1987
$40,371,670,921
423,627,187
Website: http://www.wm.com
Address: Waste Management, Inc.
1001 Fannin Street,
Suite 4000,
Houston,
Texas, 77002,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WM Common Stock New York Stock Exchange US USD 03. Jun 1988
DB UWS Common Stock Deutsche Boerse AG DE EUR 03. Jun 1988
LSE 0LTG Common Stock London Stock Exchange GB USD 03. Jun 1988
BRSE UWS Common Stock Berne Stock Exchange CH CHF 03. Jun 1988
WBAG WM Common Stock Wiener Boerse AG AT EUR 03. Jun 1988
ETLX UWS Common Stock Eurotlx IT EUR 03. Jun 1988
BOVESPA W1MC34 BDR EACH REPR 2 COM Bolsa de Valores de Sao Paulo BR BRL 30. Dec 2019
Number of employees
Current staff
Staff numbers
44,900
Waste Management employees.
Industry
Environmental and Facilities Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/29 02:16
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/13
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.