WASTE MANAGEMENT INC
WASTE MANAGEMENT INC (WM) demonstrates strong business quality and growth potential, tempered by moderate financial strength and capital allocation. The company shows consistent revenue and earnings expansion, with robust profitability metrics. However, its current valuation appears elevated compared to its intrinsic value.
Business Performance (CAGR)
Valuation Snapshot
Financial Health
Profitability Metrics
Cash Flow Intelligence
Intrinsic Value
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AI Business Verdict
WASTE MANAGEMENT INC demonstrates strong operational performance and profitability, with consistent growth in revenue and earnings. However, the current market valuation appears to be trading at a premium to its calculated intrinsic value, and the company's financial strength and free cash flow growth could benefit from further improvement. While fundamental performance is solid, the current price suggests limited upside based on intrinsic value calculations.
- Robust and consistent revenue growth (7.09% CAGR).
- Strong net profit growth (9.65% CAGR) exceeding revenue growth.
- Excellent and consistent Return on Equity (ROE) averaging 27.11%.
- High operating cash flow to net income ratio of 223.15%, indicating strong cash generation.
Balance Sheet
WASTE MANAGEMENT INC has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
Capacity to fund growth, withstand downturns and return capital.
- WASTE MANAGEMENT INC has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
- Net cash position — debt fully covered by cash & investments
- Tight short-term liquidity cushion
- Large 'other assets' bucket — investigate composition