---
title: "Waste Management, Inc. (NYSE: WM) Comprehensive Financial Research Report"
author: "DeepValues Research"
publisher: "DeepValues Research (DeepValues / LuLu Ventures LLC)"
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date: "2026-02-19"
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answer: "DeepValues Research, “Waste Management, Inc. (NYSE: WM) Comprehensive Financial Research Report” (Feb 19, 2026): In its financial results for the third quarter of 2025, Waste Management, Inc."
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# Waste Management, Inc. (NYSE: WM) Comprehensive Financial Research Report

**Disclaimer**: This content reflects the views of the author(s) as of the date indicated and is for educational and informational purposes only. It is not an investment advice. Do your own due diligence with a licensed financial advisor before making any investment decisions.

## Latest Quarter Earnings Summary

In its financial results for the third quarter of 2025, Waste Management, Inc. (WM) presented a complex picture of operational strength in its core business juxtaposed with headwinds in more volatile segments. The company reported total revenue of $6.44 billion, marking a significant 14.9% increase over the same period in the prior year. However, this figure fell slightly short of Wall Street's consensus estimates, which were centered around $6.50 billion.<sup>1</sup> This top-line miss, coupled with an adjusted earnings per share (EPS) of $1.98 that also trailed analyst expectations of approximately $2.01 to $2.03, prompted a negative reaction in the market, with the company's stock declining in after-hours trading.<sup>1</sup>

The primary drivers behind the revenue shortfall were twofold. First, the company faced a persistent and challenging environment in the global recycling market. A severe decline in recycled commodity pricing, with the blended average price for single-stream commodities plummeting by nearly 35% year-over-year, directly suppressed revenue in the Recycling Processing and Sales segment by an estimated $60 million.<sup>5</sup> Second, the company reported modestly lower-than-anticipated revenue from its newly formed WM Healthcare Solutions segment, the division created from the major acquisition of Stericycle, indicating potential integration challenges or softness in that specific market.<sup>5</sup>

Despite these top-line pressures, the underlying profitability of Waste Management's core operations demonstrated remarkable resilience and efficiency. The Collection and Disposal business, the company's foundational segment, achieved a record-high adjusted operating EBITDA margin of 37.5%.<sup>5</sup> This stellar performance was attributed to management's disciplined execution of its pricing strategy, which yielded a core price increase of 6.0%, and robust volumes at its strategically vital landfill sites.<sup>5</sup> This highlights the company's significant pricing power and the competitive strength of its asset network.

This operational strength translated into robust cash flow generation. For the first nine months of 2025, net cash provided by operating activities grew by 12% year-over-year to $4.35 billion, while free cash flow surged by 13.5% to $2.11 billion.<sup>1</sup> This performance underscores management's ability to effectively manage costs and convert earnings into cash, even when facing revenue headwinds.

Reflecting the challenges in the recycling and healthcare segments, management revised its full-year 2025 revenue guidance to the lower end of its previously announced range, now anticipating approximately $25.28 billion.<sup>1</sup> Crucially, however, the company affirmed its full-year guidance for both adjusted operating EBITDA, projected to be between $7.475 billion and $7.625 billion, and free cash flow, expected to be between $2.8 billion and $2.9 billion.<sup>5</sup> The ability to maintain profitability and cash flow targets despite a revenue guidance reduction is a powerful testament to the company's cost control measures and the formidable, high-margin nature of its core waste disposal operations.

## Business Model

Waste Management, Inc. operates as the largest integrated provider of environmental and waste management solutions in North America. The company's business model is built upon a vertically integrated network that covers the entire waste lifecycle, from initial collection to final disposal or repurposing. This comprehensive approach allows the company to capture value at every stage of the waste stream and create significant operational efficiencies. WM serves a vast and diverse customer base of over 20 million residential, commercial, industrial, and municipal clients across the United States and Canada, providing essential services that are fundamental to public health and economic activity.<sup>7</sup>

### Main Sources of Income

The company's revenue is diversified across several distinct but interconnected lines of business. The stability of its income is anchored by the essential, non-discretionary nature of its services, with approximately 75% of its revenue exhibiting annuity-like characteristics derived from long-term contracts and recurring customer needs.<sup>10</sup> The primary revenue-generating segments are as follows:

1.  **Collection:** This is the largest component of WM's business, responsible for the curbside pickup of solid waste, recyclables, and yard waste from residential customers, as well as providing dumpsters and collection services for commercial and industrial clients. Revenue is typically generated through long-term service contracts, which range from 3 to 7 years, providing a highly predictable and recurring income stream.<sup>10</sup>

2.  **Landfill:** This segment represents the company's most profitable operation and is the cornerstone of its economic moat.<sup>11</sup> WM owns and operates an unparalleled network of 254 active solid waste landfills.<sup>7</sup> Revenue is generated from "tipping fees," which are charges levied on a per-ton basis for the disposal of waste. These fees are paid by WM's own collection fleet as well as by third-party waste haulers, including municipal services and smaller competitors who lack their own disposal sites.

3.  **Transfer:** The company operates 337 transfer stations, which act as logistical hubs where waste from smaller collection trucks is consolidated into larger, more efficient vehicles for long-haul transport to landfills or other processing facilities.<sup>7</sup> This segment generates revenue from tipping fees charged to third parties and enhances the overall efficiency of WM's own collection-to-disposal network.

4.  **Recycling:** WM is a leading recycler in North America, operating 97 recycling facilities (often called Material Recovery Facilities, or MRFs) that sort and process materials such as cardboard, paper, glass, plastics, and metals.<sup>7</sup> Revenue is derived from service fees charged for processing recyclables and from the subsequent sale of these processed materials as commodities on the global market. This segment's revenue is inherently more volatile, as it is directly exposed to fluctuations in commodity prices.<sup>5</sup>

5.  **WM Renewable Energy (WMRE):** This high-growth segment focuses on sustainability-led initiatives. It primarily involves capturing methane gas, a natural byproduct of decomposition in landfills, and converting it into valuable resources like renewable electricity or Renewable Natural Gas (RNG).<sup>5</sup> This turns a potential environmental liability into a profitable energy source.

6.  **WM Healthcare Solutions:** Following the landmark acquisition of Stericycle in 2024, this segment provides specialized services for the management and disposal of regulated medical waste, as well as secure information destruction services for a variety of industries.<sup>13</sup>

Based on the company's 2024 investor day presentation, a representative breakdown of revenue by segment is illustrated below.

!(2024\_Revenue\_by\_Segment.png)

### Customers and Scale

Waste Management's scale is a defining feature of its business model. The company provides services to nearly 21 million customers across residential, commercial, industrial, and municipal sectors in the United States, Canada, and Puerto Rico.<sup>7</sup> This customer base is highly diversified, with the largest single customer accounting for less than 5% of annual revenue, which provides significant resilience against economic shocks in any one sector.<sup>10</sup> The company operates the waste industry's largest trucking fleet, with approximately 26,000 collection and transfer vehicles that handle nearly 83 million tons of solid waste annually.<sup>7</sup>

### The Economic Moat

Waste Management possesses a wide and durable economic moat, a term popularized by Warren Buffett to describe a sustainable competitive advantage that protects a company's long-term profits from competitors.<sup>15</sup> The moat is built on several powerful, interlocking factors:

-   **Unmatched Network of Landfill Assets:** The cornerstone of WM's moat is its ownership of 254 active landfill sites.<sup>7</sup> The combination of immense regulatory hurdles, extensive geological requirements, and intense public and political opposition (the "Not In My Back Yard" or NIMBY phenomenon) makes the permitting and development of new landfills in North America a nearly impossible undertaking.<sup>11</sup> This regulatory barrier creates a state of effective local monopolies for existing, permitted landfill sites. As landfill capacity across the continent diminishes, the economic value of WM's existing and permitted "airspace" systematically appreciates, granting the company formidable pricing power.

-   **Economies of Scale and Route Density:** As the industry's largest player, WM benefits from significant economies of scale. Its vast collection fleet allows for superior purchasing power on vehicles, fuel, and parts. More importantly, its high concentration of customers in established markets creates superior route density. This means that its trucks can service more customers per mile driven than smaller competitors, leading to lower fuel and labor costs per unit of revenue and constituting a significant structural cost advantage.

-   **Vertical Integration and Internalization:** WM is a vertically integrated company, controlling the waste stream from collection to disposal. A critical advantage stems from its high "internalization rate"-the percentage of waste it collects that is disposed of in its own landfills. With an internalization rate of approximately 66%, WM effectively pays itself for disposal, avoiding the open-market tipping fees that its competitors must pay.<sup>11</sup> This symbiotic relationship between its collection and landfill segments creates a powerful cost advantage that smaller, non-integrated rivals cannot replicate.

-   **High Customer Switching Costs:** While individual residential customers can switch providers, the core of WM's revenue comes from long-term, exclusive contracts with municipalities and large commercial and industrial clients.<sup>11</sup> These multi-year agreements create a sticky and predictable revenue base, making it difficult for competitors to poach large blocks of business.

The structural advantages derived from this powerful economic moat are profound. The scarcity of landfills transforms them from simple operational sites into appreciating strategic assets, giving WM increasing leverage over the entire waste ecosystem. Smaller competitors often have no choice but to pay tipping fees at WM's landfills, effectively funding their largest competitor. This dynamic creates a reinforcing feedback loop that continuously strengthens WM's market position and widens its competitive moat over time.

## Headwinds & Risks

Despite its defensive characteristics and wide economic moat, Waste Management is not immune to a range of operational, economic, and regulatory challenges. These risks can be categorized into short-term headwinds that affect quarterly performance and long-term structural risks that could impact the company's fundamental business model over the next decade.

### Short-Term Headwinds and Risks

1.  **Inflationary Cost Pressures:** The most immediate and persistent headwind facing the company is the impact of inflation on its cost structure. As a logistics-heavy business, WM is directly exposed to fluctuations in fuel prices, which can significantly impact the operating costs of its massive truck fleet. Furthermore, labor expenses, which constitute the single largest component of operating costs, are subject to wage inflation and competition for qualified drivers and technicians. These rising input costs can compress margins if they are not fully offset by the company's pricing actions.<sup>17</sup>

2.  **Recycling Commodity Price Volatility:** The profitability of the recycling segment is intrinsically linked to the global market prices of processed commodities like cardboard, mixed paper, and plastics. These markets are notoriously volatile and are influenced by global economic demand, trade policies, and manufacturing trends. As demonstrated in the third quarter of 2025, a sharp downturn in commodity prices can lead to immediate revenue and earnings shortfalls, creating volatility in the company's financial results.<sup>5</sup>

3.  **Economic Sensitivity and Volume Fluctuations:** While waste collection is an essential service, a significant portion of WM's revenue is tied to commercial and industrial activity.<sup>16</sup> During an economic downturn, manufacturing output slows, construction projects are delayed, and commercial establishments may reduce operations, all of which lead to lower waste volumes. This reduction in volume can negatively impact revenue and, due to the business's fixed cost base, lead to operating deleverage and margin contraction.<sup>19</sup>

4.  **Acquisition Integration Risk:** Large-scale acquisitions, such as the $7.2 billion purchase of Stericycle, carry substantial execution risk.<sup>13</sup> Management faces the complex task of integrating disparate corporate cultures, IT systems, and operational networks. Failure to achieve the projected cost and revenue synergies in a timely manner, or encountering unforeseen operational challenges, can lead to underperformance. The reported softness in the WM Healthcare Solutions segment in Q3 2025 suggests that these integration risks are tangible.<sup>6</sup>

### Long-Term Headwinds and Risks

1.  **The Transition to a Circular Economy:** The most significant long-term existential threat to Waste Management's traditional business model is the global shift towards a "circular economy".<sup>20</sup> This paradigm emphasizes waste prevention, reuse, and advanced recycling to minimize the amount of material sent to landfills. As governments, corporations, and consumers increasingly adopt zero-waste policies and sustainable practices, the fundamental driver of WM's most profitable segment-landfill volume-could face secular decline. A permanent decoupling of economic growth from waste generation would fundamentally challenge the company's long-term growth trajectory.<sup>21</sup>

2.  **Regulatory and Environmental Liability:** The waste management industry is one of the most heavily regulated sectors. The company is subject to a complex web of federal, state, and local environmental laws governing emissions, water quality, and landfill operations. Future regulatory changes, such as stricter standards for greenhouse gas emissions from landfills or new rules concerning the disposal of emerging contaminants like PFAS ("forever chemicals"), could necessitate significant, multi-billion dollar capital expenditures for compliance and increase ongoing operating costs.<sup>13</sup> Furthermore, the company carries the long-term liability for the environmental remediation of its disposal sites.

3.  **Intensifying Competition:** While WM is the market leader, it faces intense competition from other large, well-capitalized national players like Republic Services, as well as from aggressive and nimble regional operators.<sup>11</sup> Competition is primarily based on pricing and service quality. However, as sustainability becomes a greater focus for customers, competition is expanding to include the breadth and sophistication of environmental service offerings, such as advanced recycling capabilities and sustainability consulting.<sup>19</sup>

4.  **Reputational and Safety Risks:** The nature of waste handling exposes the company to significant safety and environmental risks. Accidents involving its large vehicle fleet, operational failures at landfills or processing facilities, or lawsuits related to improper waste disposal can result in substantial financial penalties, legal liabilities, and severe damage to the company's brand and public image.<sup>25</sup>

The company's extensive investment in sustainability, particularly in renewable natural gas production and recycling automation, can be interpreted as a strategic, multi-decade hedge against the primary long-term risk of a circular economy. By capturing the methane gas byproduct from its landfills-the very assets threatened by waste reduction-and converting it into a valuable green energy source, WM is transforming a potential liability into a new, high-growth revenue stream that aligns with the global trend towards decarbonization. The success of this strategic pivot is critical to the company's ability to thrive in a future where the volume of landfilled waste may eventually decline.

## Cost Structure

Understanding Waste Management's cost structure is fundamental to appreciating its operational leverage, margin profile, and strategic priorities. As a capital-intensive, logistics-driven business, its expenses are a mix of variable costs tied to activity levels and significant fixed costs associated with its vast network of assets.

### Fixed and Variable Costs

The company's cost base can be broadly divided into two categories:

-   **Variable Costs:** These expenses fluctuate directly with the volume of waste collected and processed. The most significant variable costs include **labor** (particularly hourly wages and overtime for drivers and facility workers), **fuel** for the collection and transfer fleet, and **subcontractor costs**, which include tipping fees paid to third-party landfills when WM operates in a market where it does not own the disposal site.<sup>27</sup> Maintenance and repair costs for the fleet and equipment also have a large variable component tied to usage.

-   **Fixed Costs:** These costs remain relatively stable regardless of short-term fluctuations in waste volume. Key fixed costs include **salaries** for administrative and management personnel, **depreciation and amortization** of the company's extensive asset base (trucks, landfills, facilities), **lease and rental expenses** for properties and equipment, and **insurance** costs.<sup>27</sup> These substantial fixed costs create operating leverage, meaning that during periods of rising volumes, profits can grow faster than revenue. Conversely, during downturns, falling volumes can lead to margin compression as these costs cannot be easily reduced.

### Analysis of Key Expense Categories

Industry-wide data for large, integrated waste management companies provides a representative breakdown of the major components of operating expenses.<sup>18</sup>

1.  **Labor Expenses:** This is the most significant cost category for Waste Management, typically accounting for **35-40% of total operating costs**. This broad category includes wages, salaries, benefits, and payroll taxes for the company's approximately 62,000 employees, spanning collection crews, landfill and recycling facility operators, maintenance technicians, and administrative staff.<sup>18</sup> The persistent trend of wage inflation and a competitive market for skilled drivers make labor cost management a top operational priority.

2.  **Fleet, Fuel, and Equipment Costs:** Constituting **20-30% of operating costs**, this category covers all expenses related to the company's massive fleet of vehicles. It includes the capital cost of acquiring new trucks (depreciation), fuel expenses, and costs for parts, maintenance, and repairs.<sup>18</sup> Fuel costs are a major source of volatility, directly exposing the company to fluctuations in global energy prices.

3.  **Recycling and Facility Costs:** This category, representing **15-25% of operating costs**, includes all expenses associated with running the network of transfer stations, material recovery facilities (MRFs), and landfills. This encompasses utility costs (electricity), maintenance of sorting and processing equipment, and, crucially, disposal fees for residual materials from the recycling process that must ultimately be landfilled.<sup>18</sup>

4.  **Compliance, Permitting, and Insurance:** Reflecting the highly regulated nature of the industry, these costs can account for **13-20% of the cost structure**. This includes expenses for environmental permits, regulatory audits, legal fees for compliance matters, and significant insurance coverage for general liability, vehicle fleets, and environmental liability.<sup>18</sup>

### Cost Trends and Management Strategy

Waste Management's costs are subject to macroeconomic trends. During periods of high inflation, as seen recently, the company faces significant pressure on both labor and fuel costs.<sup>17</sup> In response, management employs a disciplined pricing strategy to ensure that cost increases are passed through to customers to protect profit margins.

During economic downturns, while the business is resilient, it is not immune. A decline in higher-margin industrial and construction waste volumes can negatively impact profitability. To mitigate this, the company has some flexibility to reduce variable costs by optimizing collection routes, reducing overtime hours, and deferring certain capital expenditures.<sup>10</sup>

The company's cost structure clearly illuminates its long-term strategic focus on technology and automation. With labor and fuel representing the largest and most volatile expense categories, WM's substantial investments in route optimization software, automated collection vehicles, and next-generation automated recycling facilities are direct strategic initiatives aimed at reducing long-term cost pressures. By substituting one-time capital investments for recurring and inflating labor and fuel costs, the company aims to enhance its operational efficiency, widen its cost advantage over smaller competitors who cannot afford such investments, and ultimately drive higher and more stable long-term profit margins.

## Management & Governance

The quality and alignment of a company's leadership team are critical determinants of its long-term success. Waste Management is led by a team of seasoned industry veterans with deep institutional knowledge, overseen by a diverse board of directors.

### Executive Leadership

The senior leadership team is characterized by its extensive tenure within the company, fostering a culture of strategic consistency and operational expertise.

-   **Current Executive Team:**

    -   **James C. (Jim) Fish, Jr., President and Chief Executive Officer:** Mr. Fish has served as CEO since November 2016 and is a member of the Board of Directors. His career at WM began in 2001, and he has held numerous senior leadership positions, including Executive Vice President and Chief Financial Officer, providing him with a comprehensive understanding of both the company's financial and operational facets.<sup>30</sup>

    -   **John J. Morris, Jr., President and Chief Operating Officer:** A long-time company veteran, Mr. Morris joined WM in 1998. As COO, he is responsible for all field operations across North America, including collection, disposal, and recycling, as well as overseeing the company's strategic and sustainability functions. His extensive experience in field-based roles provides critical operational leadership.<sup>31</sup>

    -   **Devina A. Rankin, Executive Vice President and Chief Financial Officer:** Ms. Rankin has been responsible for all finance functions for the company. In a recent development, WM announced that Ms. Rankin will retire and be succeeded by David Reed, signaling a key transition in the company's financial leadership.<sup>34</sup>

    -   **Other Key Executives:** The senior leadership team includes Charles Boettcher (EVP and Chief Legal Officer), Tara Hemmer (SVP and Chief Sustainability Officer), and Rafael Carrasco (SVP, Enterprise Strategy and President, WM Healthcare Solutions), among others, many of whom have long tenures with the company.<sup>31</sup>

-   **Historical Context and Founder:** The company was founded in 1968 by Wayne Huizenga and Dean Buntrock.<sup>7</sup> While the founders are no longer involved, the deep experience of the current leadership team, with both the CEO and COO having over two decades of service at WM, ensures a continuity of culture and strategy.

### Board of Directors

The Board of Directors provides oversight and governance, ensuring that management acts in the best interests of shareholders.

-   **Current Board:** The board is chaired by Kathleen M. Mazzarella, who has served as a director since 2015 and became Chairman in 2023.<sup>30</sup> The board comprises nine members with a diverse range of expertise from various industries, including logistics, manufacturing, energy, and finance. The standing committees-Audit, Management Development and Compensation, and Nominating and Governance-are composed entirely of independent directors.<sup>35</sup>

### Past Performance and Integrity

A management team's credibility is built on its track record of execution and transparency.

-   **Follow-Through on Goals:** The current management team has a strong record of delivering on its capital allocation commitments. The company has consistently increased its dividend for over 20 consecutive years and regularly executes on its authorized share repurchase programs, demonstrating a reliable commitment to returning cash to shareholders.<sup>37</sup> While quarterly earnings can sometimes miss analyst estimates due to market volatility, management has shown an ability to meet or affirm its full-year guidance for core profitability and cash flow, indicating a firm grasp on the business's key drivers.<sup>5</sup>

-   **Transparency and Communication:** During quarterly earnings calls and investor presentations, management's commentary is consistently straightforward and focused on the key long-term value drivers: disciplined pricing to offset inflation, operational efficiency through technology, and strategic investments in sustainability and acquisitions.<sup>39</sup> There is no evidence of the current team hiding problems from investors; headwinds, such as recycling commodity price declines, are typically addressed directly.

-   **Historical Integrity Issues:** It is important to note that Waste Management experienced a major accounting scandal in the late 1990s, which resulted in a massive earnings restatement and a complete overhaul of its executive team and board.<sup>7</sup> This event, however, occurred long before the tenure of the current senior leadership. The legacy of this scandal has likely fostered a deeply ingrained corporate culture of rigorous financial controls and transparent reporting, which can be viewed as a long-term positive for today's investors.

### Value Alignment

Aligning the financial interests of management with those of shareholders is a cornerstone of good corporate governance.

-   **Executive Compensation and Stock Ownership:** A significant portion of executive compensation is tied to long-term performance and delivered in the form of equity awards, such as performance stock units (PSUs).<sup>41</sup> This structure ensures that senior leaders are rewarded for creating sustainable, long-term shareholder value. Furthermore, the company maintains robust stock ownership guidelines. Independent directors are required to hold shares valued at five times their annual cash retainer, ensuring they have significant personal wealth invested alongside shareholders.<sup>36</sup>

-   **Insider Transactions:** An analysis of recent insider transactions indicates a trend of selling by executives.<sup>43</sup> While significant insider selling can sometimes be a red flag, these transactions are often part of pre-scheduled trading plans for personal financial management and diversification. Nonetheless, this is a metric that warrants ongoing monitoring.

The stability and deep industry experience of Waste Management's leadership team are significant assets. They have successfully navigated economic cycles and inflationary periods while consistently executing a clear, long-term strategy focused on leveraging the company's core moat and investing for future growth.

## Shareholders & Capital Returns

Waste Management's ownership structure is dominated by large, sophisticated institutional investors, and its capital allocation policy is squarely focused on delivering consistent and growing returns to these shareholders through dividends and share repurchases.

### Top Shareholders

The company's shareholder base reflects strong confidence from the institutional investment community, which holds approximately 83.6% of the company's outstanding stock.<sup>43</sup> The concentration of ownership among large, long-term-oriented institutions provides a stable foundation for the stock.

The top institutional shareholders as of the most recent filings are <sup>43</sup>:

| **Shareholder**                       | **Approximate Ownership** |
|---------------------------------------|---------------------------|
| The Vanguard Group, Inc.              | 9.35%                     |
| Bill & Melinda Gates Foundation Trust | 8.0%                      |
| BlackRock, Inc.                       | 7.43%                     |
| State Street Global Advisors, Inc.    | 4.58%                     |

The presence of the Bill & Melinda Gates Foundation Trust as the second-largest shareholder is particularly noteworthy. This is not a passive index fund holding but a high-conviction, actively managed position that the foundation has held and managed for over two decades. Given the close relationship between Bill Gates and Warren Buffett and the "Buffett-like" characteristics of many of the foundation's other major holdings (such as Canadian National Railway), this large, long-term stake serves as a powerful endorsement of Waste Management's durable competitive advantages and its potential for long-term value compounding.<sup>47</sup>

### Shareholder Voting and Activism

Shareholders actively exercise their voting rights to influence corporate governance and policy. While most management proposals, such as the election of directors and ratification of auditors, pass with overwhelming support, shareholders have shown a willingness to challenge the board's recommendations on certain issues.

A significant recent example occurred at the May 2022 annual meeting, where a majority of shareholders voted in favor of a proposal, backed by the International Brotherhood of Teamsters, calling for an independent civil rights audit. This proposal passed despite the board's recommendation to vote against it, signaling that major institutional investors are increasingly focused on environmental, social, and governance (ESG) matters and are prepared to use their proxy votes to hold management accountable on these issues.<sup>50</sup> This trend reflects a broader shift in shareholder priorities, where ESG considerations are becoming integral to investment stewardship.

### Share Buyback Plan

Waste Management has a long and consistent history of returning capital to shareholders through share repurchase programs. These programs reduce the number of shares outstanding, thereby increasing earnings per share and returning value to remaining shareholders.

-   **Current Authorization:** In December 2023, the Board of Directors approved a new share repurchase authorization of up to **$1.5 billion**.<sup>38</sup> This action superseded the previous authorization from 2022. For the full year 2024, the company announced its expectation to repurchase approximately $1 billion of its common stock.<sup>52</sup>

-   **Historical Repurchase Activity:** The company has been programmatic in its approach to buybacks over the last decade.

    -   In 2023, the company executed **$1.3 billion** in share repurchases.<sup>38</sup>

    -   In 2022, a **$1.5 billion** authorization was fully utilized.<sup>53</sup>

    -   In 2021, the Board authorized a **$1.5 billion** repurchase plan.<sup>54</sup>

    -   Earlier authorizations, such as the **$750 million** plan approved in 2016, demonstrate the long-standing nature of this capital return policy.<sup>55</sup>

This consistent and substantial buyback activity, funded by the business's strong and predictable free cash flow, is a core pillar of WM's shareholder value proposition. It reflects a disciplined capital allocation strategy from a mature company that generates more cash than it requires for internal capital expenditures.

### History of Value Investors

The ownership history of Waste Management's stock reveals a strong appeal to long-term, value-oriented investors who prioritize companies with durable competitive advantages.

-   **Warren Buffett & Berkshire Hathaway:** While Warren Buffett's investment philosophy strongly favors companies with moats like Waste Management's, Berkshire Hathaway does not currently hold a direct position in WM according to its public 13F filings.<sup>56</sup> However, Buffett's close associate, Bill Gates, maintains a very significant investment through his foundation's trust.

-   **Bill & Melinda Gates Foundation Trust:** The Gates Foundation Trust is the most prominent value investor with a major, long-standing position in Waste Management.

    -   **Position Size:** The trust holds approximately **32.2 million shares**, valued at nearly $7.4 billion. This makes WM the third-largest holding in the trust's portfolio, accounting for over 15% of its total value, and represents an ownership stake of over 8% in Waste Management itself.<sup>49</sup>

    -   **Holding History:** The investment is not a recent one; the trust first initiated a position in Waste Management in the third quarter of 2002. Over the subsequent two decades, the position has been actively managed, with sixteen separate purchases and five sales recorded. A particularly large purchase, increasing the share count by 89%, was made in the third quarter of 2022 when the stock's average price was around $165. More recently, in the third quarter of 2024, the trust trimmed its position by 8.5% at an average price above $208.<sup>58</sup>

    -   **Performance:** The trust's estimated cost basis for its entire position is approximately $2.78 billion, with an average buy price of around $86.30 per share. This long-term investment has generated a gain of over 150% to date.<sup>58</sup>

The trading activity of the Gates Foundation Trust offers a valuable lens through which to view the stock's valuation. The substantial increase in its holding in 2022 suggests a belief that the company was attractively valued at that time. The recent partial sale at higher prices may indicate a disciplined approach to portfolio management and profit-taking as the stock's valuation has expanded, reducing the immediate margin of safety. This long-term, high-conviction holding by one of the world's most sophisticated value investors provides a powerful external validation of Waste Management's quality and long-term investment merit.

## 10 Years Key Metrics

The following table presents a comprehensive overview of Waste Management, Inc.'s key financial and operational metrics over the past decade, from fiscal year 2015 to the most recent Trailing Twelve Months (TTM) data. This historical data provides the foundation for analyzing the company's long-term performance, profitability trends, balance sheet health, and valuation. All figures are in millions of USD, except for per-share data and ratios.

| **Metric**                                      | **2015** | **2016** | **2017** | **2018** | **2019** | **2020** | **2021** | **2022** | **2023** | **2024** | **TTM** |
|-------------------------------------------------|----------|----------|----------|----------|----------|----------|----------|----------|----------|----------|---------|
| **Market Price ($)**                            | 53.76    | 70.89    | 85.31    | 89.24    | 115.15   | 118.00   | 166.42   | 162.08   | 170.19   | 199.60   | 213.77  |
| **Book Value per Share ($)**                    | 15.65    | 15.54    | 16.48    | 17.12    | 17.53    | 17.53    | 16.85    | 16.50    | 16.96    | 20.46    | 22.78   |
| **Price to Earning ratio (P/E)**                | 32.39    | 26.65    | 18.27    | 19.88    | 27.58    | 33.31    | 38.45    | 28.77    | 31.31    | 29.49    | 33.66   |
| **Price to Book ratio (P/B)**                   | 3.43     | 4.56     | 5.18     | 5.21     | 6.57     | 6.73     | 9.88     | 9.82     | 10.03    | 9.76     | 9.38    |
| **Total Market Cap ($M)**                       | 24,420   | 31,130   | 37,420   | 38,280   | 48,910   | 49,838   | 69,817   | 64,396   | 72,137   | 80,992   | 86,113  |
| **Total Assets ($M)**                           | 23,737   | 24,534   | 25,329   | 25,394   | 29,345   | 29,345   | 29,097   | 31,367   | 32,823   | 44,567   | 45,722  |
| **Total Liabilities ($M)**                      | 16,776   | 17,707   | 18,127   | 18,041   | 21,891   | 21,891   | 21,971   | 24,503   | 25,927   | 36,313   | 36,520  |
| **Book Value ($M)**                             | 6,961    | 6,827    | 7,202    | 7,353    | 7,454    | 7,452    | 7,124    | 6,849    | 6,903    | 8,252    | 9,201   |
| **Cash and cash equivalents ($M)**              | 129      | 242      | 44       | 63       | 553      | 553      | 118      | 351      | 458      | 414      | 440     |
| **Revenue ($M)**                                | 12,961   | 13,609   | 14,485   | 14,914   | 15,455   | 15,218   | 17,931   | 19,698   | 20,426   | 22,063   | 24,784  |
| **Revenue Growth Rate (%)**                     | -7.39%   | 5.00%    | 6.44%    | 2.96%    | 3.63%    | -1.53%   | 17.83%   | 9.85%    | 3.70%    | 8.01%    | 15.88%  |
| **Gross profit ($M)**                           | 4,730    | 5,123    | 5,464    | 5,665    | 5,959    | 5,877    | 6,820    | 7,404    | 7,820    | 8,680    | 9,912   |
| **Gross Margin (%)**                            | 36.50%   | 37.64%   | 37.72%   | 37.98%   | 38.56%   | 38.62%   | 38.04%   | 37.59%   | 38.29%   | 39.34%   | 39.99%  |
| **Operating Profit ($M)**                       | 2,045    | 2,296    | 2,636    | 2,789    | 2,706    | 2,478    | 2,957    | 3,428    | 3,823    | 4,309    | 4,532   |
| **Operation Margin (%)**                        | 15.78%   | 16.87%   | 18.20%   | 18.70%   | 17.51%   | 16.28%   | 16.49%   | 17.40%   | 18.72%   | 19.53%   | 18.29%  |
| **Net Income ($M)**                             | 753      | 1,182    | 1,949    | 1,925    | 1,670    | 1,496    | 1,816    | 2,238    | 2,304    | 2,746    | 2,564   |
| **Net Income Growth Rate (%)**                  | -42.22%  | 56.97%   | 64.89%   | -1.23%   | -13.25%  | -10.42%  | 21.39%   | 23.24%   | 2.95%    | 19.18%   | -2.92%  |
| **Net income margin (%)**                       | 5.81%    | 8.69%    | 13.46%   | 12.91%   | 10.81%   | 9.83%    | 10.13%   | 11.36%   | 11.28%   | 12.45%   | 10.35%  |
| **Free Cash Flow ($M)**                         | 1,595    | 1,709    | 1,760    | 1,992    | 2,105    | 1,771    | 2,434    | 1,949    | 1,824    | 2,159    | 2,402   |
| **Free Cash Flow Margin (%)**                   | 12.31%   | 12.56%   | 12.15%   | 13.36%   | 13.62%   | 11.64%   | 13.57%   | 9.89%    | 8.93%    | 9.79%    | 9.69%   |
| **Capital Expenditure ($M)**                    | 1,233    | 1,339    | 1,509    | 1,694    | 1,818    | 1,632    | 1,904    | 2,587    | 2,895    | 3,231    | 3,460   |
| **Maintenance Capital Expenditure ($M)**        | 820      | 880      | 950      | 1,050    | 1,100    | 1,150    | 1,200    | 1,300    | 1,400    | 1,500    | 1,600   |
| **Owner's-Earnings ($M)**                       | 1,129    | 1,547    | 2,375    | 2,352    | 2,244    | 2,017    | 2,615    | 2,976    | 2,975    | 3,513    | 3,239   |
| **Owner's-Earnings Margin (%)**                 | 8.71%    | 11.37%   | 16.40%   | 15.77%   | 14.52%   | 13.25%   | 14.58%   | 15.11%   | 14.56%   | 15.92%   | 13.07%  |
| **Retained Earnings ($M)**                      | 8,973    | 9,429    | 10,628   | 11,159   | 11,159   | 11,159   | 12,004   | 13,167   | 14,334   | 15,858   | 16,553  |
| **Return on Retained Earnings (%)**             | 8.39%    | 12.53%   | 18.34%   | 17.25%   | 14.96%   | 13.41%   | 15.13%   | 16.99%   | 16.07%   | 17.32%   | 15.49%  |
| **Return on Invested Capital (ROIC) (%)**       | 7.01%    | 8.32%    | 9.45%    | 9.25%    | 7.98%    | 7.24%    | 8.63%    | 9.87%    | 10.38%   | 9.48%    | 9.85%   |
| **Return on Equity (ROE) (%)**                  | 10.82%   | 17.31%   | 27.06%   | 26.18%   | 22.40%   | 20.60%   | 24.93%   | 32.02%   | 33.08%   | 36.24%   | 29.33%  |
| **Return on Assets (ROA) (%)**                  | 3.17%    | 4.82%    | 7.70%    | 7.58%    | 5.69%    | 5.43%    | 6.33%    | 7.09%    | 7.45%    | 6.96%    | 7.05%   |
| **Owner's Earnings / Total Market Cap (%)**     | 4.62%    | 4.97%    | 6.35%    | 6.14%    | 4.59%    | 4.05%    | 3.75%    | 4.62%    | 4.12%    | 4.34%    | 3.76%   |
| **Shareholder's Equity ($M)**                   | 6,961    | 6,827    | 7,202    | 7,353    | 7,454    | 7,452    | 7,124    | 6,849    | 6,903    | 8,252    | 9,201   |
| **Shareholder's Equity / Total Market Cap (%)** | 28.50%   | 21.93%   | 19.25%   | 19.21%   | 15.24%   | 14.95%   | 10.20%   | 10.64%   | 9.57%    | 10.19%   | 10.68%  |
| **Interest Expense / Operating Income (%)**     | 20.68%   | 18.34%   | 16.35%   | 14.92%   | 17.22%   | 17.15%   | 12.34%   | 10.99%   | 13.12%   | 13.88%   | 19.64%  |
| **Current Ratio**                               | 0.83     | 0.77     | 0.73     | 0.74     | 0.96     | 1.00     | 0.75     | 0.81     | 0.90     | 0.76     | 0.84    |
| **Debt to equity ratio**                        | 1.48     | 1.63     | 1.54     | 1.60     | 1.85     | 1.85     | 1.88     | 2.18     | 2.35     | 2.90     | 2.61    |
| **Debt to asset ratio**                         | 0.44     | 0.45     | 0.44     | 0.46     | 0.47     | 0.47     | 0.46     | 0.48     | 0.49     | 0.54     | 0.53    |
| **Depreciation / Gross Profit (%)**             | 27.32%   | 25.39%   | 25.18%   | 26.07%   | 26.41%   | 28.43%   | 29.31%   | 27.53%   | 26.48%   | 26.12%   | 26.00%  |

*Note: Data compiled from company 10-K filings and financial data providers such as Macrotrends, StockAnalysis, and Morningstar. TTM data is as of the latest reported quarter (Q3 2025). Maintenance Capital Expenditure is estimated based on company disclosures and industry averages.*

## Buffett-Style Checklist

Evaluating a company through the lens of Warren Buffett's investment philosophy involves more than just a cursory glance at its valuation multiples. It requires a rigorous assessment of its long-term economic characteristics, profitability, financial strength, and management's ability to allocate capital effectively. While Waste Management exhibits many qualities of a "Buffett-style" business, particularly its formidable economic moat, it deviates from the strict quantitative standards in several key areas.

### Valuation Discipline

This set of criteria assesses whether the company is available at a reasonable price, providing a margin of safety for the investment.

1.  Price to Earning ratio (P/E) ≤ 15: Fail.
    > Waste Management has consistently traded at a significant premium to this benchmark. Over the past decade, its P/E ratio has rarely fallen below 20 and has often exceeded 30.60 The current TTM P/E ratio of 33.66 is more than double the standard. This reflects the market's high regard for the company's stability and dominant market position, but it fails the strict valuation test.

2.  Price to Book ratio (P/B) ≤ 1.5: Fail.
    > Similarly, the company's P/B ratio has remained substantially elevated, currently standing at 9.38. This is a common characteristic of companies with significant intangible assets (like the value of their landfill permits and brand) that are not fully reflected on the balance sheet. Nevertheless, it does not meet this conservative valuation criterion.

3.  Margin of Safety: Pay ≥ 25% below conservative intrinsic value: To be determined by DCF.
    > This will be formally assessed in the Discounted Cash Flow analysis section. However, given the high trading multiples, achieving a significant margin of safety at the current market price appears challenging.

### Cash Generation & Allocation

These criteria focus on a company's ability to generate cash and deploy it intelligently to create further shareholder value.

1.  Free-Cash-Flow (FCF): Positive each year; FCF/Revenue &gt; 5%: Pass.
    > Waste Management is a prolific and consistent generator of free cash flow. The company has reported positive FCF in every year of the last decade. Furthermore, its FCF margin (FCF/Revenue) has consistently exceeded the 5% threshold, averaging over 11% in the last ten years, demonstrating excellent cash conversion.

2.  Return on Retained Earnings ≥ 12%: Pass.
    > This metric measures how effectively management has reinvested the profits that were not paid out as dividends. Over the past decade, Waste Management's return on retained earnings has consistently been above the 12% benchmark, averaging approximately 16%. This indicates that each dollar of profit reinvested back into the business has generated more than a dollar of market value over time, a hallmark of effective capital allocation.

### Growth & Predictability

This section evaluates the consistency and reliability of the company's earnings and growth trajectory.

1.  EPS Record: Positive & rising every year for 10 yrs: Pass.
    > Diluted Earnings Per Share (EPS) has demonstrated a remarkably consistent and strong upward trend over the past decade. From $1.65 in 2015, it has grown to $6.81 in 2024, with positive growth in every single year, showcasing the predictable and resilient nature of the business.

2.  Shareholder-equity: 10-year CAGR in book value per share ≥ 10% and no single year of contraction: Fail.
    > While Book Value per Share (BVPS) has grown from $15.65 in 2015 to $20.46 in 2024, this represents a Compound Annual Growth Rate (CAGR) of only about 3%. Furthermore, there were years of slight contraction (e.g., 2016, 2021, 2022). The company's aggressive use of debt and share buybacks can distort this metric.

3.  Owner's-earnings (OE): positive every year, OE / Market Cap ≥ 10%: Fail.
    > Owner's Earnings have been consistently and strongly positive every year for the last decade, confirming the business's cash-generating power. However, the yield (Owner's Earnings / Market Cap) has consistently been below the 10% threshold, typically falling in the 4-6% range. This is another consequence of the stock's high market valuation.

### Balance-Sheet Safety

These metrics assess the company's financial leverage and its ability to withstand economic shocks.

1.  Debt-to-Equity &lt; 0.5: Fail.
    > This is a significant deviation from the standard. Waste Management employs a highly leveraged capital structure, with a Debt-to-Equity ratio that has consistently been above 1.5 and has recently approached 3.0.44

2.  Interest Coverage (EBIT / Interest) ≥ 3×: Pass.
    > Despite its high debt load, the company's earnings provide ample coverage for its interest payments. The ratio of Interest Expense to Operating Income has remained comfortably below 20% in recent years, and the interest coverage ratio (EBIT/Interest) stands at a healthy 5.6x, well above the 3x minimum.

3.  Current Ratio &gt; 1.5: Fail.
    > The company consistently operates with a current ratio below 1.0, meaning its current liabilities exceed its current assets.60 This reflects a business model with negative working capital, which can be efficient but fails this conservative liquidity test.

### Profitability & Efficiency

These criteria measure the underlying profitability and efficiency of the business operations.

1.  Gross Margin ≳ 40%: Fail (Borderline).
    > Waste Management's gross margins have been very stable but have consistently hovered just below the 40% mark, typically in the 37-39% range over the past decade.

2.  Net Profit Margin ≳ 20%: Fail.
    > The company's net profit margin is strong and consistent for an industrial company but does not reach the high bar of 20%. It has averaged in the 10-12% range over the last several years.18

3.  Return on Equity (ROE) ≥ 15% average for 10 yrs: Pass.
    > This is an area of exceptional strength. Waste Management's ROE has been consistently high, averaging well over 20% and often exceeding 30% in recent years.60 This high figure is, however, amplified by the company's significant financial leverage.

4.  Return on Invested/Total Capital (ROIC/ROTC) ≥ 12% 10-yr avg: Fail.
    > ROIC, which accounts for both debt and equity capital, provides a more sober view of profitability than ROE. The company's ROIC has been steady but has averaged in the 9-10% range, falling short of the 12% standard.60

5.  Return on Assets (ROA) ≥ 6%: Pass.
    > The company's ROA has consistently been above the 6% threshold in recent years, demonstrating efficient use of its large asset base to generate profits.

6.  Depreciation / Gross Profit ≤ 10%: Fail.
    > As a highly capital-intensive business, depreciation is a significant expense. The ratio of Depreciation to Gross Profit has consistently been well above 10%, typically in the 25-30% range.

In summary, Waste Management fails many of the strict quantitative hurdles of a traditional Buffett-style investment, primarily due to its premium valuation and high leverage. However, the reasons for these deviations are directly linked to the extraordinary quality of its business. The market awards a high valuation precisely because of the durability of its economic moat. The high debt levels are supported by the utility-like stability and predictability of its cash flows. An investor, therefore, must weigh the exceptional qualitative strengths of the business against the less attractive quantitative metrics.

## Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) analysis is a valuation method used to estimate the value of an investment based on its expected future cash flows. This analysis projects Waste Management's ability to generate Free Cash Flow to the Firm (FCFF) over the next ten years and then calculates a terminal value for all cash flows thereafter. These future cash flows are then discounted back to the present day using a discount rate, the Weighted Average Cost of Capital (WACC), to arrive at the company's intrinsic value.

To account for a range of potential future outcomes, this analysis is presented in three scenarios: a **Conservative Case**, a **Nominal Case**, and an **Optimistic Case**.

### Key Assumptions

The following assumptions are foundational to all three scenarios:

-   **Base Year Free Cash Flow (FCFF):** The analysis begins with the Trailing Twelve Months (TTM) Free Cash Flow, which stands at **$2,402 million**.

-   **Discount Rate (WACC):** The Weighted Average Cost of Capital is calculated to be **7.50%**. This is derived from:

    -   Cost of Equity: 8.5% (based on a Risk-Free Rate of 4.5%, a Beta of 0.64 <sup>63</sup>, and an Equity Risk Premium of 6.25%).

    -   Cost of Debt: 4.0% (after-tax).

    -   Equity Weight: 20%; Debt Weight: 80%, reflecting the company's current capital structure.

-   **Terminal Growth Rate:** A perpetual growth rate of **2.5%** is assumed for cash flows beyond the initial 10-year projection period. This rate is a conservative proxy for long-term nominal GDP growth.

-   **Shares Outstanding:** The diluted shares outstanding figure of **404 million** is used to calculate the per-share value.<sup>64</sup>

### Scenario 1: Conservative Case

This scenario assumes a pessimistic outlook on the company's ability to grow its free cash flow, using the lowest annual growth rate observed over the past decade as the projection.

-   **Free Cash Flow Growth Rate:** **-24.8%** (based on the FCF decline from 2021 to 2022). This is an extremely conservative assumption, reflecting a period of heavy capital investment.

-   **Step-by-Step Calculation:**

    1.  Project FCFF for the next 10 years, starting with $2,402 million and declining at an annual rate of 24.8%.

    2.  Calculate the Terminal Value at the end of Year 10 using the Gordon Growth Model:
        > $$TV = \\frac{FCFF\_{10} \\times (1 + g)}{WACC - g} = \\frac{\\$173 \\times (1 + 0.025)}{0.075 - 0.025} = \\$3,546 \\text{ million}$$

    3.  Discount each of the 10 projected FCFF values and the Terminal Value back to their present values using the 7.50% WACC.

    4.  Sum the present values to find the Total Enterprise Value (TEV). In this case, the TEV is **$10,250 million**.

    5.  Calculate Equity Value by subtracting Net Debt ($23,580 million) from the TEV.

    6.  The resulting Equity Value is negative, which indicates that under this severe and sustained cash flow decline, the company's debt exceeds its enterprise value.

-   **Results:**

    -   **Intrinsic Value:** $0.00 per share (as Equity Value is negative).

    -   **Buy Price with 25% Margin of Safety:** $0.00 per share.

### Scenario 2: Nominal Case

This scenario represents a more balanced outlook, using the historical average growth rate of free cash flow over the past decade.

-   **Free Cash Flow Growth Rate:** **5.5%** (the approximate 10-year average annual FCF growth rate).

-   **Step-by-Step Calculation:**

    1.  Project FCFF for 10 years, starting with $2,402 million and growing at an annual rate of 5.5%.

    2.  Calculate the Terminal Value at the end of Year 10:
        > $$TV = \\frac{FCFF\_{10} \\times (1 + g)}{WACC - g} = \\frac{\\$4,103 \\times (1 + 0.025)}{0.075 - 0.025} = \\$84,112 \\text{ million}$$

    3.  Discount all future cash flows (Years 1-10 FCFF and the Terminal Value) back to the present using the 7.50% WACC.

    4.  The sum of these present values yields a Total Enterprise Value of **$69,850 million**.

    5.  Subtract Net Debt ($23,580 million) to arrive at an Equity Value of **$46,270 million**.

    6.  Divide the Equity Value by 404 million shares outstanding.

-   **Results:**

    -   **Intrinsic Value:** **$114.53 per share.**

    -   **Buy Price with 25% Margin of Safety:** **$85.90 per share.**

### Scenario 3: Optimistic Case

This scenario models a highly favorable future, using the best annual free cash flow growth rate from the past decade as the projection.

-   **Free Cash Flow Growth Rate:** **37.5%** (based on the FCF growth from 2020 to 2021). This reflects a period of strong operational performance and favorable working capital changes.

-   **Step-by-Step Calculation:**

    1.  Project FCFF for 10 years, starting with $2,402 million and growing at an annual rate of 37.5%.

    2.  Calculate the Terminal Value at the end of Year 10:
        > $$TV = \\frac{FCFF\_{10} \\times (1 + g)}{WACC - g} = \\frac{\\$56,380 \\times (1 + 0.025)}{0.075 - 0.025} = \\$1,155,790 \\text{ million}$$

    3.  Discount all future cash flows back to the present using the 7.50% WACC.

    4.  The sum of these present values yields a Total Enterprise Value of **$641,330 million**.

    5.  Subtract Net Debt ($23,580 million) to arrive at an Equity Value of **$617,750 million**.

    6.  Divide the Equity Value by 404 million shares outstanding.

-   **Results:**

    -   **Intrinsic Value:** **$1,529.08 per share.**

    -   **Buy Price with 25% Margin of Safety:** **$1,146.81 per share.**

### DCF Analysis Summary

The results of the three scenarios provide a wide valuation range, underscoring the sensitivity of the DCF model to the growth rate assumption.

| **Scenario**     | **FCF Growth Rate** | **Intrinsic Value per Share** | **Buy Price (25% Margin of Safety)** |
|------------------|---------------------|-------------------------------|--------------------------------------|
| **Conservative** | -24.8%              | $0.00                         | $0.00                                |
| **Nominal**      | 5.5%                | $114.53                       | $85.90                               |
| **Optimistic**   | 37.5%               | $1,529.08                     | $1,146.81                            |

The Conservative case, which projects a sustained and severe decline in free cash flow, suggests the company's equity would be worthless. This scenario is highly unlikely given the company's resilient business model and consistent performance. The Optimistic case, projecting a continuation of the best growth year, results in an exceptionally high valuation that is likely unsustainable.

The **Nominal Case** provides the most realistic estimate of intrinsic value based on the company's long-term historical average performance. Its finding of an intrinsic value of approximately **$115 per share** suggests that, at the current market price of over $213, Waste Management's stock is significantly overvalued. To purchase the stock with a 25% margin of safety, an investor would need to wait for a price near **$86 per share**, a level not seen in many years. This analysis indicates that while Waste Management is an exceptionally high-quality business, its current market price appears to have run far ahead of its intrinsic value based on a reasonable projection of future cash flows.

## Key Metrics Charts

The following charts illustrate the 10-year trends for key financial metrics of Waste Management, Inc. Each chart provides a visual representation of the data presented in the 10-Year Key Metrics table, allowing for an intuitive understanding of the company's performance over time.

### 1. Market Price (市场价格)

### 2. Book Value per Share (每股账面价值)

!(2.\_Book\_Value\_per\_Share.png)

### 3. Price to Earning ratio (P/E) (市盈率)

### 4. Price to Book ratio (P/B) (市净率)

!(4.*Price\_to\_Book\_ratio*(PB).png)

### 5. Total Market Cap (总市值)

!(5.\_Total\_Market\_Cap.png)

### 6. Total Assets (总资产)

!(6.\_Total\_Assets.png)

### 7. Total Liabilities (总负债)

!(7.\_Total\_Liabilities.png)

### 8. Book Value (账面价值)

!(8.\_Book\_Value.png)

### 9. Cash and cash equivalents (现金及现金等价物)

### 10. Revenue (营业收入)

!(10.\_Revenue.png)

### 11. Revenue Growth Rate (营收增长率)

!(11.\_Revenue\_Growth\_Rate.png)

### 12. Gross profit (毛利)

### 13. Gross Margin (毛利率)

### 14. Operating Profit (营业利润)

### 15. Operation Margin (营业利润率)

### 16. Net Income (净利润)

### 17. Net Income Growth Rate (净利润增长率)

!(17.\_Net\_Income\_Growth\_Rate.png)

### 18. Net income margin (净利率)

### 19. Free Cash Flow (自由现金流)

### 20. Free Cash Flow Margin (FCF/Revenue) (自由现金流利润率)

!(20.*Free\_Cash\_Flow\_Margin*(FCFRevenue).png)

### 21. Capital Expenditure (资本支出)

### 22. Maintenance Capital Expenditure (维护性资本支出)

### 23. Owner's-Earnings (所有者盈余)

### 24. Owner's-Earnings Margin (所有者盈余利润率)

### 25. Retained Earnings (留存收益)

!(25.\_Retained\_Earnings.png)

### 26. Return on Retained Earnings (留存收益回报率)

!(26.\_Return\_on\_Retained\_Earnings.png)

### 27. Return on Invested Capital (ROIC) (投入资本回报率)

!(27.*Return\_on\_Invested\_Capital*(ROIC).png)

### 28. Return on Equity (ROE) (净资产收益率)

!(28.*Return\_on\_Equity*(ROE).png)

### 29. Return on Assets (ROA) (总资产收益率)

!(29.*Return\_on\_Assets*(ROA).png)

### 30. Shareholder's Equity (股东权益)

!(32.\_Shareholders\_Equity.png)

### 31. Owner's Earnings / Total Market Cap (所有者盈余/总市值)

!(31.\_Owners\_Earnings\_\_Total\_Market\_Cap.png)

### 32. Shareholder's Equity / Total Market Cap (股东权益/总市值)

!(33.\_Shareholders\_Equity\_\_Total\_Market\_Cap.png)

### 33. Interest Expense / Operating Income (利息费用/营业收入)

### 34. Current Ratio (流动比率)

!(35.\_Current\_Ratio.png)

### 35. Debt to equity ratio (产权比率)

!(36.\_Debt\_to\_equity\_ratio.png)

### 36. Debt to asset ratio (资产负债率)

!(37.\_Debt\_to\_asset\_ratio.png)

### 37. Depreciation / Gross Profit (折旧/毛利)

!(38.\_Depreciation\_\_Gross\_Profit.png)

**Financial Disclaimer**: This content reflects the views of the author(s) as of the date indicated and is for educational and informational purposes only. It is not investment advice. All financial data and analysis is based on publicly available sources and may be subject to revisions or differing interpretations. Conduct your own due diligence with a licensed financial advisor before making any investment decisions. The author has no duty or obligation to update the information contained herein. Further, the author makes no representation, and it should not be assumed, that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss. This content is being made available for educational and informational purposes only and should not be used for any other purpose. The information contained herein does not constitute and should not be construed as an offering of advisory services or an offer to sell or solicitation to buy any securities or related financial instruments in any jurisdiction.

#### Works cited

1.  Waste Management 3Q Revenue Climbs, Sees Fiscal Year Revenue at Low End of Prior View \| Morningstar, accessed October 28, 2025, [<u>https://www.morningstar.com/news/dow-jones/202510279951/waste-management-3q-revenue-climbs-sees-fiscal-year-revenue-at-low-end-of-prior-view</u>](https://www.morningstar.com/news/dow-jones/202510279951/waste-management-3q-revenue-climbs-sees-fiscal-year-revenue-at-low-end-of-prior-view)

2.  Compared to Estimates, Waste Management (WM) Q3 Earnings: A Look at Key Metrics, accessed October 28, 2025, [<u>https://www.nasdaq.com/articles/compared-estimates-waste-management-wm-q3-earnings-look-key-metrics</u>](https://www.nasdaq.com/articles/compared-estimates-waste-management-wm-q3-earnings-look-key-metrics)

3.  Waste Management: Q3 Earnings Snapshot \| ktvb.com, accessed October 28, 2025, [<u>https://www.ktvb.com/article/syndication/associatedpress/waste-management-q3-earnings-snapshot/616-ce764ca1-76fd-4783-8a75-804f0acce66e</u>](https://www.ktvb.com/article/syndication/associatedpress/waste-management-q3-earnings-snapshot/616-ce764ca1-76fd-4783-8a75-804f0acce66e)

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