WASTE MANAGEMENT INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. WASTE MANAGEMENT INC has weak liquidity. Currently, the Quick Ratio is 0.87 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.40% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||3360.0||3602.0|
|Net Income ($mil)||335.0||270.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||113.0||183.0|
|Total Assets ($mil)||20402.0||22211.0|
|Total Debt ($mil)||9050.0||10164.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||38.36||36.81|
|Return on Assets||5.24||0.46|
|Return on Equity||20.43||1.92|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||446.47||457.85|
|Div / share||0.39||0.38|
|Book value / share||11.73||11.72|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2126849.0||2406196.0|
BUY. WASTE MANAGEMENT INC's P/E ratio indicates a discount compared to an average of 26.71 for the Commercial Services & Supplies industry and a value on par with the S&P 500 average of 21.13. Conducting a second comparison, its price-to-book ratio of 4.54 indicates a significant premium versus the S&P 500 average of 2.51 and a premium versus the industry average of 4.06. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. The valuation analysis reveals that, WASTE MANAGEMENT INC seems to be trading at a discount to investment alternatives within the industry.
|WM 22.73||Peers 26.71||WM 9.59||Peers 12.61|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
WM is trading at a discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
WM is trading at a discount to its peers.
|WM 19.27||Peers 20.38||WM NM||Peers 1.08|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
WM is trading at a valuation on par with its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
WM's negative PEG ratio makes this valuation measure meaningless.
|WM 4.54||Peers 4.06||WM 917.39||Peers 145.63|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
WM is trading at a premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
WM is expected to have an earnings growth rate that significantly exceeds its peers.
|WM 1.81||Peers 1.84||WM -6.46||Peers 2.46|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
WM is trading at a valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
WM significantly trails its peers on the basis of sales growth
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