-0.98%
9.83%
2.93%
6.02%
17.03%
48.70%
79.53%

Company Description

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America.It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns, develops, and operates landfill gas-to-energy facilities in the United States, as well as owns and operates transfer stations.As of December 31, 2021, the company owned or operated 255 solid waste landfills; 5 secure hazardous waste landfills; 96 MRFs; and 340 transfer stations.


It also provides materials processing and commodities recycling services; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions.In addition, the company offers construction and remediation services; services related with the disposal of fly ash, and residue generated from the combustion of coal and other fuel stocks; in-plant services comprising full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations.The company was formerly known as USA Waste Services, Inc.


and changed its name to Waste Management, Inc.in 1998.Waste Management, Inc.


was incorporated in 1987 and is headquartered in Houston, Texas.

Market Data

Last Price 220.26
Change Percentage -0.98%
Open 221.6
Previous Close 222.43
Market Cap ( Millions) 88405
Volume 1947531
Year High 230.39
Year Low 187.2
M A 50 213.18
M A 200 210.49

Financial Ratios

FCF Yield 2.38%
Dividend Yield 1.36%
ROE 48.33%
Debt / Equity 0.00%
Net Debt / EBIDTA -89.59%
Price To Book 423.24
Price Earnings Ratio 32.21
Price To FCF 42.04
Price To sales 4.01
EV / EBITDA 13.82

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> East Tier

Expected Growth : 5.5 %

What the company do ?

The East Tier from Waste Management, Inc. refers to the company's operations in the eastern United States, providing waste collection, transfer, disposal, and recycling services to residential, commercial, and industrial customers.

Why we expect these perspectives ?

East Tier's 5.5% growth in Waste Management, Inc. is driven by increasing municipal solid waste volumes, rising recycling demand, and strategic acquisitions. Additionally, the region's growing population, urbanization, and industrial activities contribute to the segment's expansion. Furthermore, Waste Management's focus on sustainability and environmental services also supports growth in this tier.

Segment nΒ°2 -> West Tier

Expected Growth : 6.0 %

What the company do ?

The West Tier is a segment of Waste Management, Inc. that provides waste collection, transfer, disposal, and recycling services to residential, commercial, and industrial customers in the western United States.

Why we expect these perspectives ?

The West Tier segment of Waste Management, Inc. is driven by a 6.0% growth rate, primarily attributed to increasing municipal solid waste volumes, rising recycling demand, and strategic acquisitions. Additionally, the company's focus on cost savings initiatives, operational efficiencies, and investments in technology and infrastructure also contribute to this growth.

Segment nΒ°3 -> Other Ancillary

Expected Growth : 5.0 %

What the company do ?

Other Ancillary from Waste Management, Inc. refers to revenue generated from services like recycling brokerage, landfill gas-to-energy, and environmental remediation.

Why we expect these perspectives ?

The 5.0% growth in Other Ancillary from Waste Management, Inc. is driven by increasing adoption of recycling programs, rising demand for sustainable waste solutions, and expansion of organics collection services. Additionally, growing construction and demolition waste volumes, as well as increased focus on environmental sustainability, contribute to this growth.

Segment nΒ°4 -> Recycling Processing and Sales

Expected Growth : 7.0 %

What the company do ?

Recycling Processing and Sales from Waste Management, Inc. involves collecting, processing, and selling recyclable materials, generating revenue from the sale of commodities like paper, plastic, and metals.

Why we expect these perspectives ?

Strong demand for recyclable materials, increasing adoption of circular economy practices, and government regulations promoting sustainability drive 7.0% growth in Recycling Processing and Sales from Waste Management, Inc. Additionally, investments in technology and infrastructure to improve recycling efficiency and expand capacity also contribute to this growth.

Segment nΒ°5 -> WM Renewable Energy

Expected Growth : 8.0 %

What the company do ?

WM Renewable Energy from Waste Management, Inc. generates renewable energy from waste, producing electricity and fuel from landfill gas and wastewater treatment.

Why we expect these perspectives ?

WM Renewable Energy's 8.0% growth is driven by increasing adoption of sustainable waste management practices, rising demand for renewable energy sources, and expanding government incentives for waste-to-energy projects. Additionally, Waste Management's strong brand reputation, strategic partnerships, and investments in technology advancements contribute to the segment's growth.

Segment nΒ°6 -> Corporate and Other

Expected Growth : 4.0 %

What the company do ?

Corporate and Other from Waste Management, Inc. refers to the company's non-operating income, expenses, and other miscellaneous items not attributed to its operating segments.

Why we expect these perspectives ?

The 4.0% growth in Corporate and Other segment of Waste Management, Inc. is driven by increased adoption of sustainability services, expansion of environmental consulting, and growth in recycling brokerage services, as well as cost savings initiatives and operational efficiencies.

Waste Management, Inc. Products

Product Range What is it ?
Residential Trash and Recycling Curbside collection of household trash and recyclables, including single-stream recycling and organics collection
Commercial Trash and Recycling Customized waste management solutions for businesses, including dumpster rentals, recycling programs, and composting services
Construction and Demolition Debris Removal Specialized services for construction and demolition projects, including roll-off dumpsters and debris recycling
Industrial Waste Management Customized waste management solutions for industrial facilities, including hazardous waste disposal and recycling
Recycling and Composting State-of-the-art recycling facilities and composting services to convert waste into valuable resources
Landfill Gas-to-Energy Renewable energy production from landfill gas, generating electricity and heat
Organics and Food Waste Management Specialized services for food waste and organic materials, including composting and anaerobic digestion

Waste Management, Inc.'s Porter Forces

Waste Management, Inc. has a low threat of substitutes due to the lack of alternative waste management services that can replace its offerings.

Waste Management, Inc. has a medium bargaining power of customers due to the presence of some large customers, but the company's diversified customer base mitigates this risk.

Waste Management, Inc. has a low bargaining power of suppliers due to its large scale of operations and ability to negotiate favorable terms with suppliers.

Waste Management, Inc. has a low threat of new entrants due to the high barriers to entry in the waste management industry, including regulatory hurdles and significant capital requirements.

Waste Management, Inc. operates in a highly competitive industry with several large players, leading to a high intensity of rivalry among competitors.

Capital Structure

Value
Debt Weight 70.16%
Debt Cost 4.09%
Equity Weight 29.84%
Equity Cost 7.54%
WACC 5.12%
Leverage 235.10%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
PCAR PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, …
PAYX Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It …
RSG Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid …
CAT Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold …
TDG TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
220.26$
Current Price
220.26$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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