| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 38 | 30.2x | 17.8x | Bottom tier | |
Growth | 53 | 7.2% | 7.1% | Around median | |
Quality | 82 | 11.2% | 4.5% | Top tier | |
Safety | 50 | 3.0x | 2.6x | Around median | |
Capital Return | 66 | 1.66% | 2.12% | Top tier | |
Momentum | 44 | 3.5% | 2.9% | Around median | |
Sentiment | 70 | 19 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Waste Management, Inc. operates an integrated environmental services platform combining waste collection and disposal, recycling, renewable natural gas production, and healthcare solutions. Its ability to generate revenue and profits depends on collection route density, its network of disposal and recycling facilities, pricing, and operating efficiency, while expanding the value of this network through complementary services and small solid waste acquisitions.
In Q2 FY2026, WM reported revenue of $6.7 billion, gross profit of $2.7 billion, net income of $785 million, and earnings per share of $1.95. These figures represent a gross margin of approximately 40.3% and a net income margin of approximately 11.7%, while the adjusted earnings before interest, taxes, depreciation, and amortization margin reached 30.9% and expanded 40 basis points year over year, despite a 60-basis-point negative impact from the comparison with the prior year's wildfire cleanup work and a 40-basis-point impact from energy fees.
The operating growth mix came from several units: company earnings before interest, taxes, depreciation, and amortization increased 5.5%, or 9.1% excluding the prior year's wildfire cleanup contribution, while recycling and renewable energy earnings increased by approximately 33% combined. The Healthcare Solutions margin also reached 19% after improving by 200 basis points, while collection and disposal activities added 140 basis points to company margin growth through pricing, cost control, and mix improvement. On a trailing 12-month basis in FY2026, revenue reached $25.7 billion, gross profit was $10.5 billion, and net income was $2.9 billion.
The analyst consensus is "Buy," with an average target of $244, but both the highest and lowest targets are $244, so the consensus provides no dispersion that can be used to measure differences in opinion. This target is only approximately 1.7% below the 52-week high of $248.13, compared with a low of $194.11; the data do not include a valid comparable price-to-earnings ratio, making WM's valuation more dependent on continued margin expansion and cash flow despite the lowered revenue outlook.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
WM reported revenue of $6.7 billion, gross profit of $2.7 billion, and net income of $785 million. Earnings per share according to EDGAR were approximately $1.95, while reported adjusted earnings were $2.02 versus analyst expectations of $1.99. The adjusted earnings before interest, taxes, depreciation, and amortization margin reached 30.9%, up 40 basis points year over year. Quarterly free cash flow also increased 35%.
The company narrowed its revenue range to $26.275–$26.475 billion, approximately 0.5% below its previous guidance. This was mainly due to weaker collection and disposal volumes, lower recycling brokerage activity, and delays in connecting two renewable natural gas plants to pipelines. WM estimated the revenue decline from collection and disposal volumes at approximately $250 million, partially offset by $175 million in additional energy fees. In contrast, it maintained its operating earnings and free cash flow guidance and raised its margin range to 31%–31.2%.
The company said on its July 29, 2026 call that SmartTruck generates more than $300 million in annualized earnings before interest, taxes, depreciation, and amortization. The benefits come from service upgrades, route optimization, and lower operating costs using artificial intelligence and operational data. Recycling automation also reduced labor cost per ton by 30% compared with older facilities and helped increase processed volumes by 12% in Q2 FY2026. In collection, operating cost growth remained below 1.7% despite labor costs increasing by approximately 4%.
Automated analysis for informational purposes only — not investment advice.
The earnings before interest, taxes, depreciation, and amortization margin in Healthcare Solutions reached 19% in Q2 FY2026, after improving by 200 basis points. The unit's selling, general, and administrative expenses declined 15% and represented 18% of its revenue at the end of the quarter, compared with approximately 24%–25% at the time of the acquisition. Cross-selling initiatives had generated $32 million in annualized operating earnings as of the call, versus an initial target of $50 million. The company remains on track to achieve more than $300 million in synergies by the end of 2027.
Management expects collection and disposal volumes to be approximately flat in the second half of FY2026, after coming in below plan in the first half. Residential volumes declined 2.9% in Q2 FY2026, and the company also lost some national commercial accounts due to pricing. In renewable energy, the operation of two completed plants depends on third parties finishing the pipeline connections. Operating issues resulting from a fire at a recycling facility in Arizona may also affect the benefits of improving recycled material prices.
WM announced on August 26, 2026 that Jim Fish would retire as chief executive officer and from the board of directors after more than 25 years with the company. The board appointed John Morris, who had been serving as company president, as his successor as chief executive officer. Morris had participated in the presentation of Q2 FY2026 results and discussed operating performance, volumes, and pricing. The data do not include additional details about any other executive changes associated with this announcement.
