WASTE MANAGEMENT INC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. WASTE MANAGEMENT INC has weak liquidity. Currently, the Quick Ratio is 0.65 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 10.07% 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||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||3561.0||3526.0|
|Net Income ($mil)||210.0||244.0|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||137.0||154.0|
|Total Assets ($mil)||22179.0||23012.0|
|Total Debt ($mil)||9797.0||9770.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||36.06||35.05|
|Return on Assets||0.55||3.69|
|Return on Equity||2.11||13.05|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||465.89||468.15|
|Div / share||0.38||0.37|
|Book value / share||12.56||13.9|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1609201.0||1599106.0|
BUY. WASTE MANAGEMENT INC's P/E ratio indicates a significant premium compared to an average of 63.76 for the Commercial Services & Supplies industry and a significant premium compared to the S&P 500 average of 18.06. For additional comparison, its price-to-book ratio of 3.68 indicates a premium versus the S&P 500 average of 2.49 and a premium versus the industry average of 3.64. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, WASTE MANAGEMENT INC proves to trade at a premium to investment alternatives within the industry.
|WM 171.44||Peers 63.76||WM 8.68||Peers 11.93|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
WM is trading at a significant premium 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 significant discount to its peers.
|WM 18.15||Peers 21.00||WM 0.17||Peers 3.81|
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.
Discount. 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 trades at a significant discount to its peers.
|WM 3.68||Peers 3.64||WM -85.17||Peers 96.55|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
WM is trading at a valuation on par with its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, WM is expected to significantly trail its peers on the basis of its earnings growth rate.
|WM 1.53||Peers 1.86||WM 2.33||Peers 17.76|
Discount. 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 discount to 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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