WASTE MANAGEMENT INC (WM) Stock Analysis

Analysis from 10-Q filed 2025-10-28. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 9.5%. FCF margin 13.9%. D/E 2.4x. Source: 10-Q filed 2025-10-28.

Metric	Value	Context
ROIC	9.5%	Near cost of capital
FCF Margin	13.9%	Healthy cash flow
Debt/Equity	2.4x	Elevated debt

ROIC 9.5% — Top 25% of sector peers. FCF margin 13.9% — Top 25%.

Explore WASTE MANAGEMENT INC: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for WM: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: WASTE MANAGEMENT INC earns 9.5% ROIC, Top 25% in Utilities

ROIC TTM 9.5%, sector median 5.4%, Top 25%. DuPont: NOPAT margin 13.8% × asset turnover 0.6x. Gross margin 40.9%. Operating margin 17.6%. Source: 10-Q filed 2025-10-28.

Metric	WM	Rating	Context
Return on Invested Capital (ROIC)	9.5%	Adequate	Above sector median of 5.4%
Return on Equity (ROE)	29.2%	Excellent	Efficient use of shareholder equity
Gross Margin	40.9%	Good	Strong pricing power
Operating Margin	17.6%	Good	Efficient operations

---

Cash Flow: WASTE MANAGEMENT INC generates $3.6B FCF at 13.9% margin, positive NaN/8 quarters

FCF TTM $3.6B. FCF margin 13.9%, Top 25%. OCF/Net income 2.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-28.

Metric	WM	Rating	Context
Free Cash Flow Margin	13.9%	Good	Healthy cash generation
Free Cash Flow (TTM)	$3.6B	Good	Positive cash generation
OCF/Net Income	2.3x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: WASTE MANAGEMENT INC at 2.4x leverage

Debt/Equity 2.4x. Total debt $23.4B, cash & investments $557.0M. Source: 10-Q filed 2025-10-28.

Metric	WM	Rating	Context
Debt to Equity	2.4x	Warning	Elevated leverage
Net Cash Position	$-22.8B	Warning	Net debt position

---

Valuation: WASTE MANAGEMENT INC trades at 31.4x earnings

P/E 31.4x. EV/Sales 4.4x. FCF yield 4.0%. Dividend yield 1.6%. Source: 10-Q filed 2025-10-28.

Metric	WM	Rating	Context
P/E Ratio	31.4x	Adequate	Premium valuation
EV/Sales	4.4x	Good	Growth premium priced in
FCF Yield	4.0%	Adequate	Lower cash yield
Dividend Yield	1.6%	Adequate	Growth focus over income

---

Capital Allocation: WASTE MANAGEMENT INC returns 1.6% shareholder yield

Total shareholder yield 1.6% (div 1.6%). Capital returned $1.4B TTM. Source: 10-Q filed 2025-10-28.

Metric	WM	Rating	Context
Total Shareholder Yield	1.6%	Adequate	Dividend + buyback yield combined
Total Capital Returned (TTM)	$1.4B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	9.5%	Top 25%	1.7x above
Free Cash Flow Margin	13.9%	Top 25%	-
Gross Margin	40.9%	Bottom 50%	0.8x below
Operating Margin	17.6%	Bottom 50%	0.8x below
Return on Equity (ROE)	29.2%	Top 5%	3.1x above
P/E Ratio	31.4x	N/A	-

---

Financial Scorecard

Metric	WM	Rating	Sector Context
Return on Invested Capital (ROIC)	9.5%	Adequate	Top 25% of sector (median: 5.4%)
Free Cash Flow Margin	13.9%	Good	Top 25% of sector (median: 0.0%)
Gross Margin	40.9%	Good	Bottom 50% of sector (median: 50.7%)
Debt to Equity Ratio	235.6%	Warning	High financial leverage
P/E Ratio (Price-to-Earnings)	31.4x	Adequate	Growth premium
Free Cash Flow Yield	4.0%	Adequate	Moderate yield

---

Frequently Asked Questions

Q: What is WASTE MANAGEMENT INC's Return on Invested Capital (ROIC)?

WASTE MANAGEMENT INC (WM) has a trailing twelve-month Return on Invested Capital (ROIC) of 9.5%. Sector median 5.4%. Source: 10-Q filed 2025-10-28.

Q: What is WASTE MANAGEMENT INC's Free Cash Flow Margin?

WASTE MANAGEMENT INC (WM) has a free cash flow margin of 13.9%, generating $3.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-28.

Q: What is WASTE MANAGEMENT INC's P/E ratio and how does it compare to peers?

WASTE MANAGEMENT INC (WM) trades at a P/E ratio of 31.4x, which is above the sector median of N/A. EV/Sales 4.4x. FCF yield 4.0%. Source: 10-Q filed 2025-10-28.

Q: Does WASTE MANAGEMENT INC pay a dividend?

WASTE MANAGEMENT INC (WM) currently pays a dividend yield of 1.6%. Total shareholder yield (dividend + buybacks) 1.6%. Source: 10-Q filed 2025-10-28.

Q: How much debt does WASTE MANAGEMENT INC have?

WASTE MANAGEMENT INC (WM) has a debt-to-equity ratio of 2.4x with total debt of $23.4 billion. Net debt $22.8 billion. Source: 10-Q filed 2025-10-28.

Q: What is WASTE MANAGEMENT INC's revenue and earnings growth?

WASTE MANAGEMENT INC (WM) grew revenue by 7.2% year-over-year. EPS +4.8% YoY. Source: 10-Q filed 2025-10-28.

Q: How does WASTE MANAGEMENT INC compare to competitors in Utilities?

Compared to other companies in Utilities, WASTE MANAGEMENT INC (WM) shows: ROIC 9.5%, sector median 5.4% (Top 25%). FCF margin 13.9%, sector median 0.0% (Top 25%). Gross margin 40.9%, 9.8pp below sector median. These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.

Q: What warning signs should I watch for with WASTE MANAGEMENT INC?

Quantitative warning flags for WASTE MANAGEMENT INC (WM): 1) debt/equity 2.4x (above 1.5x threshold). Source: 10-Q filed 2025-10-28.

---

Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.