$203.03
arrow_drop_up0.56%Is WM a Buy or Sell based on AI Analysis?
Fundamental Analysis
Waste Management Inc. shows strong financial performance with a solid return on equity of 33.08% and a healthy net margin of 11.28%. The company's revenue growth has been steady at 3.7%, and it boasts a gross margin of 38.28%. Additionally, Waste Management Inc. has a low debt-to-equity ratio of 2.43, indicating a conservative approach to financing its operations. Furthermore, the company's dividend yield of 1.46% and a payout ratio of 45.23% suggest a commitment to rewarding shareholders while maintaining financial stability. In terms of valuation, Waste Management Inc. has a price-to-earnings ratio of 36.58, which is in line with industry standards. The company's forward annual dividend yield of 0.01% may not be very high, but its history of consistent dividends per share growth of 7.69% reflects a commitment to returning value to shareholders. Waste Management Inc.'s price-to-sales ratio of 4.05 and price-to-book ratio of 11.97 indicate that the stock is priced at a reasonable level relative to its sales and assets. Moreover, the company's enterprise value to revenue ratio of 4.82 suggests that investors are paying a fair price for the company's earnings potential.
Positive Development
Waste Management Inc. continues to show strong financial performance, with a high EBIT per share (1.9392) and a high EPS (1.2179). Waste Management has shown consistent outperformance in comparison to its competitors, indicating a strong market position. Waste Management has a high net margin (0.0945) and a high ROE (0.3344), indicating strong financial efficiency. The company has a high asset turnover (0.64) and a low debt-to-equity ratio (0.6818), indicating a healthy financial structure.
Negative Development
Waste Management Inc. has a high total debt-to-equity ratio (2.351) and a high total debt-to-total asset ratio (0.4944), indicating a high level of debt and a potential risk of bankruptcy. The company's high debt levels may limit its financial flexibility and potentially lead to higher interest payments. Waste Management Inc. has a high long-term debt to total capital ratio (0.6871), indicating a high reliance on debt for capital expenditures. The company's stock has underperformed in comparison to its competitors despite showing strong financial performance. This may indicate a potential lack of investor confidence.
Technical Analysis
Waste Management Inc (WM) has a neutral technical rating, with technical indicators suggesting a mix of buy, hold, and sell signals. The stock's price performance over the past month has seen a slight decline of 0.84%, but its year-to-date price change percentage stands at a positive 15.31%. The stock has a beta of 0.72, indicating lower volatility compared to the overall market. Additionally, Waste Management Inc's technical analysis shows that the stock has a trailing P/E ratio of 36.36 and a forward annual dividend yield of 1.46%, highlighting the company's stable financial performance and potential for income investors. Moreover, Waste Management Inc's technical analysis reveals that the stock has a market quality score of 58 and a market growth score of 68, indicating solid fundamentals and growth potential. The company's technical indicators updated as of March 4, 2024, show a mix of buy, hold, and sell signals, with indicators such as RSI, MACD, and ADX suggesting a hold while CCI, WILLR, and STOCHRSI indicating a sell. Waste Management Inc's stock sector of Industrials has experienced a significant change of 28.82% over the past year, outperforming the stock market change of 24.04% during the same period. Overall, Waste Management Inc's technical analysis points to a stable financial performance, a neutral market outlook, and potential growth opportunities in the waste management industry.
Conclusion and recommendation
Based on the data provided, Waste Management Inc (WM) appears to be a solid investment opportunity. With a market cap of $83.16B and a strong financial performance, including a PE ratio of 36.58 and a return on equity of 33.08%, the company demonstrates stability and profitability. Additionally, Waste Management Inc has a dividend yield of 1.46% and a history of consistent dividend payments, making it an attractive option for income investors. The company's solid revenue growth, net margin of 11.28%, and positive price change percentages over various time frames also indicate strong performance and potential for future growth. In conclusion, Waste Management Inc seems to be a well-managed company with a strong financial position and steady growth prospects. Investors looking for a reliable and profitable investment may consider adding WM to their portfolio. With a combination of solid financial metrics, a consistent dividend payment history, and steady market performance, Waste Management Inc is positioned as a stable and potentially lucrative investment opportunity in the industrials sector. However, as with any investment decision, it is critical for investors to conduct further research and analysis to ensure that WM aligns with their investment goals and risk tolerance.