Waste Management Stock Analysis, Valuation (NYSE:WM)

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$91.34 $0.49 (0.54%) WM stock closing price Aug 17, 2018 (Closing)

View the Waste Management stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for WM stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Waste Management, Inc. Stock Rating 3.3/5

Amigobulls WM stock analysis uses latest quarter 2018 Q2 financial data like Waste Management revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Waste Management valuation analysis. Waste Management stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy WM stock?

  • Waste Management had a healthy average operating margin of 18.66 over the last 4 quarters.
  • Net margins came in at average 14.9% for Waste Management over the last twelve months.
  • The company has an operating cash flow which is 1.9539 times the net income. We see this as a positive signal.
  • Waste Management has an attractive ROIC (Return on Invested Capital) of 14.6
  • Waste Management has a good Return On Equity (ROE) of 37.7.
  • Waste Management has a healthy FCF (Free Cash Flow) margin of 14.4.

Should you sell WM stock?

  • Waste Management had a low YoY revenue growth of 1.7% in the 2018-06.
  • Long term revenue growth of 1.2 over the past 5 years has been disappointing.
  • Waste Management is debt laden and has a high debt/equity ratio of 1.62.

Comments on this video and Waste Management stock

Amigobulls Waste Management stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of WM stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Waste Management revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Waste Management stock.