Don't Buy Waste Management (WM) Before Checking Its Fundamentals!

Shares of Large-cap utilities company Waste Management moved 0.1 this afternoon, and are now trading at $157.1 per share. On the other hand, the average analyst target price for the stock is $179.43.

Waste Management, Inc., through its subsidiaries, engages in the provision of environmental solutions to residential, commercial, industrial, and municipal customers in the United States and Canada.

Potential Waste Management Investors Should Analyze the Following:

  • Waste Management has moved -6.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 3.12. A number between 0 and 1 could mean that the market is undervaluing Waste Management's estimated growth potential

  • Its Price to Book (P/B) ratio is 9.21

  • Waste Management currently returns an annual dividend yield of 1.7%.

Understanding Waste Management's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023-02-07 19,698,000 -3,976,000 17 6.25
2022-02-15 17,931,000 -3,863,000 16 0.0
2021-02-22 15,218,000 -3,399,000 16 -11.11
2020-02-13 15,455,000 -3,205,000 18 0.0
2019-02-14 14,914,000 -2,930,000 18 0.0
2018-02-15 14,485,000 -2,828,000 18

Waste Management's operating margins have averaged 17.2% over the last 6 years, which is significantly higher than the Environmental Services industry average of 12.59%. The firm's margins exhibit a relatively stable growth trend of -0.6%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.