Waste Management Inc.

200.54 (-0.62%) 1.24

80.49(B)

Industrials

Commercial Services and Supplies

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. 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 and operates transfer stations as well as owns develops and operates landfill facilities that produce landfill gas used as renewable natural gas for generating electricity. As of December 31 2022 the company owned or operated 254 solid waste landfills five secure hazardous waste landfills 97 MRFs and 337 transfer stations. It also provides materials processing and commodities recycling services at its MRFs where cardboard paper glass metals plastics construction and demolition materials and other recycling commodities are recovered for resale or redirected for other purposes; 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.

Holdings:

Cost basis:

Waste Management Inc. (WM) price target and intrinsic value estimate

WM's fair price estimate is $92.8

This valuation is based on a fair P/E of 13.0 and EPS estimates of $7.15

The median analyst price target for WM is $230.5.

Analyst price targets range from $181.0 to $255.0

Is WM overvalued or undervalued?

WM is currently trading at $200.54

WM is overvalued by 116% using the pevaluation method.

WM is undervalued by 13% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Low $69.6

Median $92.8

High $116.0

Fair P/E

Margin of safety

Analyst valuation

Low $181.0

Median $230.5

High $255.0

Strong Buy2

Buy9

Hold11

Sell0

Strong Sell1

Discounted cash-flow

TTM FCFFCF est.Growth FCFTerminal FCF

Discount rate:

10%

Terminal rate:

Growth phase length:

Growth phase rate:

10%

Economic moat: None/narrow

Overview

Market data

Market cap:$80.49(B)

Enterprise value:$95.08(B)

Total Equity:$7.97(B)

Shares outstanding:401.37(M)

Div. yield:1.47%

P/S:3.77

P/E:30.52

P/FCF:38.27

P/B:10.09

EPS:$6.6

FCF per share:$5.2

Dividend per share:$3.0

Income (TTM)

Revenue$21.39(B)

Gross profit$8.41(B)

EBITDA$6.38(B)

Net income$2.64(B)

Gross margin39.3%

Net margin12.3%

Balance sheet

Total assets$34.73(B)

Total liabilities$26.76(B)

Cash & Short-term inv.$614.00(M)

Long-term debt$15.11(B)

Debt issued$14.90(B)

Debt repaid$-14.02(B)

Cash flow (TTM)

FCF$2.10(B)

CapEx$-3.16(B)

Dividends paid$-1.19(B)

Stock issued$57.00(M)

Stock repurchased$-626.00(M)

Stock-based comp.$106.00(M)

Future Growth

Revenue

CAGR: 8.8%

FY+1$22.07(B)

FY+2$25.64(B)

FY+3$27.01(B)

FY+4$28.89(B)

FY+5$30.90(B)

Net Income

CAGR: 9.4%

FY+1$2.94(B)

FY+2$3.22(B)

FY+3$3.57(B)

FY+4$4.02(B)

FY+5$4.22(B)

EPS

CAGR: 10.0%

FY+1$7.32

FY+2$8.07

FY+3$8.86

FY+4$10.21

FY+5$10.73

FCF per share

CAGR: 7.3%

FY+1$13.46

FY+2$14.11

FY+3$15.49

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Historical Financials

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YearlyQuarterly

Income

RevenueNet IncomeCOGSGross ProfitTotal OpEx.R&DSG&AOperating IncomeInterest ExpenseInterest IncomePre-tax incomeIncome tax

Cash flow

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Balance sheet

Total AssetsTotal LiabilitiesCurrent assetsCash and EquivalentsShort-term investmentsInventoriesReceivablesNon-current assetsNet PP&EGoodwillCurrent liabilitiesAccounts payableNon-current liabilitiesLong-Term DebtTotal Equity

Shares outstanding

Shares (Basic)Shares (Diluted)

Per share data

EPS (Basic)EPS (Diluted)FCF/ShareDividend/ShareBook value/Share

Ratios

P/EP/FCFP/BP/SEV/EarningsEV/FCFDebt/EquityPayout ratio

Margins

Net Income MarginOperating MarginGross MarginEBITDA MarginFCF Margin

Returns

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Market Cap.