Waste Management, Inc. (WM) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Waste Management, Inc.

Updated on October 28, 2026 · accounts published on October 27, 2026

Reading of October 27, 2026: A steady, cash-generative business with solid margins and heavy capital needs

Waste Management trades at a P/E of 33.4× over the last 12 months, 29 % above its sector median, while revenue grew 14 % and EPS slipped 1.6 %.

• Is Waste Management expensive or cheap? Its P/E of 33.4× is 29 % above the sector median and higher than in 63 % of the past decade.
• How is the business doing? Revenue rose 14 % over the last 12 months while EPS slipped 1.6 %; the 19 % operating margin tops its 2014-2025 average.
• How strong is the balance sheet? Net debt equals 3.2× fiscal 2025 EBITDA, just over the 3.0× healthy line, while the dividend has risen 11 years in a row.
• What to expect from the next earnings? Next results are due February 3, 2027, with EPS of $2.10 expected; the 2026 consensus held at $8.11 over the last 30 days.
• Does it turn its margin into cash, and at what multiple of the cycle does it trade? Free cash flow was 104 % of net income in fiscal 2025, even with capex at 13 % of revenue, above the sector's 4-8 % band.

Is Waste Management expensive or cheap?

Over the last 12 months Waste Management trades at a P/E of 33.4×, 29 % above the 25.8× median of its sector (297 companies). Against its own history the gap is smaller. The ten-year median is 31.6×, so today's multiple sits 6 % higher, and the stock has traded on a lower P/E 63 % of the time over the decade, in a range from 18.3× to 47.2×. Free cash flow yield is 3.3 % and earnings yield 3.2 %, thin returns for a buyer at this price. The share price is up 12 % over the last 12 months and sits 4 % below its 52-week high of $246.51.

How is the business doing?

Revenue climbed 14 % over the last 12 months, and revenue per share compounded at 12 % a year between fiscal 2020 and 2025. Earnings did not follow, with EPS down 1.6 % over the same 12 months, so growth is not yet reaching shareholders. Profitability holds up: the operating margin of 19 % over the last 12 months is above the 18 % average of fiscal 2014-2025. Return on capital is the weaker point. ROIC of 9.1 % is only 0.2 points above the sector median of 8.9 %, and it has topped 10 % in just 2 of the last 10 fiscal years.

How strong is the balance sheet?

Debt is the main thing to keep an eye on. Net debt was $58.65 per share in fiscal 2025, equal to 25 % of the current share price and 3.2× EBITDA, just above the 3.0× that marks a healthy level for industrials. The current ratio of 0.82 over the last 12 months means short-term liabilities exceed short-term assets, and the Altman Z of 2.9 sits in the grey zone, a hair under the 2.99 safe line. Shareholder returns are steady: the dividend per share has grown for 11 consecutive fiscal years through 2025, with a payout of 49 % of earnings, and yields 1.6 % over the last 12 months.

What to expect from the next earnings?

On October 27, 2026 Waste Management reported quarterly EPS of $2.15, 1.4 % short of the $2.18 analysts expected, and it has beaten EPS estimates in only 4 of the last 8 quarters. Forecasts have held steady: the 2026 EPS consensus stayed at $8.11 over the last 30 days among 17 analysts, and revenue estimates for 2026 barely changed either. Of the 35 analysts covering the company, 20 recommend buying, 15 holding and none selling. The next report is due on February 3, 2027, with EPS of $2.10 expected, below the quarter just published.

Does it turn its margin into cash, and at what multiple of the cycle does it trade?

Semi-cyclical industrials are judged on operating margin, cash conversion and multiples measured across the cycle, because a single year's profit can mislead. Waste Management's fiscal 2025 operating margin of 18 % beats the 12 % healthy threshold, and free cash flow equalled 104 % of net income, above the 85 % benchmark. The cost is heavy investment: capex took 13 % of revenue in fiscal 2025, well above the 4-8 % range considered healthy for the sector. On a cycle view, EV/EBITDA of 12.8× over the last 12 months is below its seven-year average of 15.5×, while the P/E of 33.4× stays within 10 % of its ten-year average of 31.5×.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.