Stock Analysis on Net

Waste Management Inc. (NYSE:WM)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 15, 2022.

Price to Earnings (P/E)
since 2005

Microsoft Excel

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Calculation

Waste Management Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Waste Management Inc. Annual Report.


Share Price Trends
The share price showed moderate fluctuations from 2006 to 2010, ranging mostly between approximately $28.63 and $37.98. Starting in 2011, the share price exhibited a general upward trend, accelerating significantly from 2013 onwards. It reached its peak in 2022 at $142.68, reflecting strong investor confidence or growth expectations in recent years despite some volatility, such as a dip observed in 2021.
Earnings per Share (EPS) Analysis
The EPS remained relatively stable and modest from 2006 through 2012, generally fluctuating between $1.76 and $2.35, with a notable drop to $0.21 in 2014. From 2015, the EPS demonstrated a recovery and increasing trend, peaking at $4.54 in 2019 before slightly decreasing and rebounding again in 2022 to $4.38. This pattern suggests improved profitability or operational efficiency over the long term, despite the significant dip observed in 2014.
Price to Earnings (P/E) Ratio Insights
The P/E ratio showed considerable volatility over the period. It remained in a moderate range from 2006 to 2010, fluctuating approximately between 12.94 and 21.15. There was a sharp spike to 197.88 in 2014, correlating with the very low EPS that year, likely due to a temporary anomaly or one-time event affecting earnings. After 2014, the P/E ratio stabilized though at elevated levels compared to earlier years, generally ranging from 18.7 to over 32 in recent years, indicative of higher market valuation relative to earnings, possibly reflecting growth expectations or investor optimism.
Overall Observations
The combination of rising share prices and recovering EPS since 2015 suggests an improvement in the company’s financial health and market perception. However, the elevated P/E ratios in recent years imply that the stock may be priced with significant growth expectations, which could pose valuation risks if such growth does not materialize. The unusual data point in 2014 warrants further investigation to understand underlying causes. The data does not provide direct information on dividends or other financial metrics that may complement this analysis.

Comparison to Industry (Industrials)