Waste Management, Inc. (WM)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business that is understandable, essential, and hard to displace. Waste Management fits that description: it collects waste and recyclables, runs transfer stations and landfills, and sells landfill gas-to-energy. Its route density and permitted disposal network give it local scale advantages, even if the economics are regulated and capital-intensive. The filed numbers show steady progress: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.7B, net income $785.0M, and diluted EPS $1.95, versus $6.4B, $726.0M, and $1.80 in fiscal Q2 2025, the quarter ended 2025-06-30. Fiscal year 2025, period ended 2025-12-31, had revenue $25.2B, net income $2.7B, and diluted EPS $6.70. FairStock classifies it as a stalwart, with five-year profit growth of 12.6% a year and revenue growth of 10.6%. Financial health is decent but not pristine: Piotroski 7/9, Altman Z 2.33, and trailing free cash flow $3.6B, yet D/E 2.35 is high and ROCE 6.57% is modest. At the 2026-10-26 close of $241.02, FairStock’s P/E is 34.09, P/B 9.71, PEG 4.16, FCF yield 3.7%, and Graham Number $62.82—a -281.06% margin of safety. ROE is 29.84%, but that is flattered by leverage. The price already discounts steady growth; I would require a wider discount before calling it a Graham-style bargain.

In plain English: Waste Management collects trash and recyclables for homes, businesses and cities, and also runs landfills and waste-to-energy facilities. The business looks steady and profitable, with sales and profit growing, but it carries a lot of debt. At $241.02, the share price looks expensive compared with the company's earnings, accounting value and growth.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer