Waste Management Stock Analysis, Valuation (NYSE:WM)

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$75.54 $0.29 (0.39%) WM stock closing price Aug 21, 2017 (Closing)
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Waste Management
Updated on : Aug 21, 2017
previous close
WM 75.5 (0%)
S&P 500 2428.4 (0%)
Closing Price On: Aug 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Waste Removal Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
17.1%
Sector Average:
8.7%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
9.06B
Debt/Equity Ratio:
 1.65
Compared to the industry
Cash Flow
Operating cash flow:
$813M
Net Income:
$362M
Dividend Yield
WM dividend yield:
2.22%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WM PS :
2.4
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
9.5%
Return on Equity:
24%
Free Cash Flow Margin:
14%
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Waste Management Analysis Video

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View Waste Management stock analysis video. This is our WM analyst opinion covering the buy and sell arguments for WM stock.

Waste Management, Inc. Stock Rating (3/5)

Our Waste Management stock opinion is based on fundamentals of the company. This Waste Management stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy WM stock?

  • Waste Management's average operating margin of 17.1% was exceptional.
  • Net margins came in at average 9.2% for Waste Management over the last twelve months.
  • The operating cash flow looks good at 2.2 times the net income.
  • Waste Management has an attractive ROIC (Return on Invested Capital) of 9.5%
  • The LTM ROE of 24% for Waste Management is attractive.
  • Waste Management has a healthy FCF (Free Cash Flow) margin of 14%.

Should you sell WM stock?

  • With a debt/equity ratio of  1.65, Waste Management is highly leveraged in comparison to Business Services peers.

Comments on this video and Waste Management stock

user profile picture
adam.gav0 on Waste Management stock analysis ($53.98)
bearish
that's a dump stock I'd rather dump.
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