WASTE MANAGEMENT INC's gross profit margin for the first quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. WASTE MANAGEMENT INC has average liquidity. Currently, the Quick Ratio is 1.01 which shows that technically this company has the 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 3.18% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||3040.0||3396.0|
|Net Income ($mil)||-129.0||228.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||277.0||339.0|
|Total Assets ($mil)||20691.0||22442.0|
|Total Debt ($mil)||9207.0||10194.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||36.71||34.92|
|Return on Assets||4.54||0.7|
|Return on Equity||16.94||2.75|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||457.76||465.3|
|Div / share||0.39||0.38|
|Book value / share||12.13||12.33|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2466641.0||2324638.0|
BUY. The current P/E ratio indicates a discount compared to an average of 32.27 for the Commercial Services & Supplies industry and a premium compared to the S&P 500 average of 20.83. Conducting a second comparison, its price-to-book ratio of 4.13 indicates a premium versus the S&P 500 average of 2.88 and a significant discount versus the industry average of 6.26. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, WASTE MANAGEMENT INC proves to trade at a discount to investment alternatives within the industry.
|WM 24.69||Peers 32.27||WM 10.19||Peers 14.90|
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 significant discount to its peers.
|WM 18.56||Peers 22.06||WM NM||Peers 1.56|
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 4.13||Peers 6.26||WM 497.05||Peers 94.91|
Discount. 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 significant discount 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 1.68||Peers 1.99||WM -2.87||Peers 5.98|
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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