Last Updated: 07 Nov 2024
Executive Summary
Waste Management Inc. (WM) is a leading waste management company in North America. The company has a strong financial position with a market capitalization of $86.65 billion, EBITDA of $6.38 billion, and EPS of $6.54. WM's stock is currently trading at $218.48, which is below its 52-week high of $224.19. The company has a trailing PE ratio of 33.01 and a forward PE ratio of 27.25. Analysts have a positive outlook on WM, with 5 strong buy ratings, 6 buy ratings, and 12 hold ratings.
Company Overview
Waste Management Inc. is an American waste management, comprehensive waste, and environmental services company in North America. Founded in 1968, the company is headquartered 800 Capitol in Houston, Texas. WM provides waste collection, disposal, and recycling services to residential, commercial, and industrial customers. The company also provides environmental services such as landfill gas energy production, leachate treatment, and hazardous waste disposal.
Fundamental Analysis
WM's financial performance has been strong in recent years. The company's revenue has grown from $19.7 billion in 2019 to $21.4 billion in 2023. EPS has also grown from $5.88 in 2019 to $6.54 in 2023. WM's profit margin is 12.3%, and its operating margin is 20.1%. The company's return on assets is 7.95%, and its return on equity is 35%.
WM's financial strength is reflected in its strong credit ratings. The company has a BBB+ rating from Standard & Poor's and a Baa1 rating from Moody's. WM's debt-to-equity ratio is 0.65, which is below the industry average of 0.75.
Technical Analysis
WM's stock price has been trending higher in recent months. The stock broke out of a consolidation pattern in early 2023 and has since rallied to its current level of $218.48. The stock's 50-day moving average is $209.38, and its 200-day moving average is $206.9. The stock's relative strength index (RSI) is 65, which indicates that the stock is overbought.
Short Term Outlook
WM's stock price is likely to continue to trend higher in the short term. The stock is trading above its 50-day and 200-day moving averages, and the RSI is indicating that the stock is overbought. This suggests that there is still momentum behind the stock, and it is likely to continue to rise in the short term.
Long Term Outlook
WM's long-term outlook is also positive. The company is a leader in the waste management industry, and it is well-positioned to benefit from the growing demand for waste management services. WM is also investing in new technologies, such as landfill gas energy production and leachate treatment, which will help the company to reduce its costs and improve its environmental performance.
Analyst Recommendations
Analysts have a positive outlook on WM. The consensus analyst rating is "buy," and the average analyst target price is $232.51. This suggests that analysts believe that WM's stock is undervalued and that it has the potential to appreciate in value in the long term.
