Waste Management Inc.
Find Ratings ReportsWASTE MANAGEMENT INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased 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 0.79 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained unchanged 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 | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 5217.0 | 4935.0 |
EBITDA ($mil) | 1598.0 | 1383.0 |
EBIT ($mil) | 1039.0 | 810.0 |
Net Income ($mil) | 493.0 | 499.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 468.0 | 434.0 |
Total Assets ($mil) | 32823.0 | 31367.0 |
Total Debt ($mil) | 16747.0 | 15508.0 |
Equity ($mil) | 6903.0 | 6849.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 40.46 | 37.89 |
EBITDA Margin | 30.63 | 28.02 |
Operating Margin | 19.92 | 16.41 |
Sales Turnover | 0.62 | 0.63 |
Return on Assets | 7.01 | 7.13 |
Return on Equity | 33.38 | 32.68 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.9 | 0.81 |
Debt/Capital | 0.71 | 0.69 |
Interest Expense | 128.0 | 109.0 |
Interest Coverage | 8.12 | 7.43 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 401.46 | 407.89 |
Div / share | 0.7 | 0.65 |
EPS | 1.22 | 1.21 |
Book value / share | 17.2 | 16.79 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1629346.0 | 1578315.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 44.67 for the Waste Management and Remediation Services subsector and a premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 12.23 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 7.80. The current price-to-sales ratio is well above the S&P 500 average, but below the subsector average. The valuation analysis reveals that, WASTE MANAGEMENT INC seems to be trading at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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WM 37.16 | Peers 44.67 | WM 17.89 | Peers 17.97 | |||||||||||||||||||||
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. |
Average. 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 valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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WM 27.31 | Peers 28.98 | WM 1.70 | Peers 2.20 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector 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 discount to its peers. |
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Price/Book |
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Earnings Growth |
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WM 12.23 | Peers 7.80 | WM 5.00 | Peers 4.21 | |||||||||||||||||||||
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 significant 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 exceeds its peers. |
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Price/Sales |
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Sales Growth |
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WM 4.13 | Peers 4.47 | WM 3.69 | Peers 7.77 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. WM significantly trails its peers on the basis of sales growth. |
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