Since April 2026, Waste Management has been in a holding pattern, floating around $225.23. The stock also fell short of the S&P 500’s 7.7% gain during that period.
Given the weaker price action, is now a good time to buy WM? Or should investors expect a bumpy road ahead? Find out in our full research report, it’s free.
Why Does Waste Management Spark Debate?
Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.
Two Things to Like:
1. Long-Term Revenue Growth Shows Strong Momentum
A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Waste Management’s 9.2% annualized revenue growth over the last five years was solid. Its growth surpassed the average industrials company and shows its offerings resonate with customers.
2. Operating Margin Reveals a Well-Run Organization
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
Waste Management’s operating margin has more or less stayed the same over the last 12 months , averaging 17.5% over the last five years. This profitability was elite for an industrials business thanks to its efficient cost structure and economies of scale. This is seen in its fast historical revenue growth and healthy gross margin, which is why we look at all three data points together.
One Reason to Be Careful:
Projected Revenue Growth Is Slim
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Waste Management’s revenue to rise by 5.9%, a deceleration versus its 9.2% annualized growth for the past five years. This projection doesn’t excite us and implies its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.
Final Judgment
Waste Management’s positive characteristics outweigh the negatives. With its shares underperforming the market lately, the stock trades at 26.6× forward P/E (or $225.23 per share). Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
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