Last Updated: 18 Sep 2024
Executive Summary
Waste Management Inc. (WM) is a leading waste management company in North America, providing comprehensive waste and environmental services. The company has a strong financial position with a market capitalization of $83.6 billion, an EBITDA of $6.24 billion, and a trailing PE ratio of 32.24. WM's revenue and earnings have grown steadily in recent quarters, and the company has a favorable long-term outlook.
Company Overview
Waste Management was founded in 1968 and is headquartered in Houston, Texas. The company operates in all 50 states and Canada, providing waste collection, disposal, and recycling services to residential, commercial, and industrial customers. WM also provides environmental services, such as landfill gas-to-energy projects and hazardous waste management.
Fundamental Analysis
WM's financial performance has been strong in recent years. The company's revenue has grown from $18.5 billion in 2020 to $20.98 billion in 2023, and its net income has increased from $2.6 billion to $3.1 billion over the same period. WM's profit margin has also improved, from 10.8% in 2020 to 12.1% in 2023.
The company's balance sheet is also strong. WM has $10.4 billion in cash and equivalents and $12.5 billion in long-term debt. The company's debt-to-equity ratio is 0.6, which is below the industry average.
Technical Analysis
WM's stock price has been trending higher in recent months. The stock is currently trading at $203.12, which is above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 62, which indicates that the stock is overbought but not yet in bubble territory.
Short Term Outlook
WM's short-term outlook is positive. The company's earnings are expected to continue to grow in the coming quarters, and the stock price is expected to follow suit. However, the stock is currently overbought, and a pullback could occur in the near term.
Long Term Outlook
WM's long-term outlook is also positive. The company is well-positioned to benefit from the growing demand for waste management services. WM is also investing in new technologies, such as landfill gas-to-energy projects, which will help the company to reduce its environmental impact and improve its profitability.
Analyst Recommendations
Analysts are generally bullish on WM. The consensus analyst rating is "Buy," and the average analyst target price is $225.85. Five analysts have a "Strong Buy" rating on the stock, six have a "Buy" rating, and 12 have a "Hold" rating. No analysts have a "Sell" or "Strong Sell" rating on the stock.
