Stock Analysis on Net
Stock Analysis on Net

Waste Management Inc. (NYSE:WM)

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

Common Stock Valuation Ratios (Price Multiples) 
Quarterly Data

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Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Historical Valuation Ratios (Summary)

Waste Management Inc., historical price multiples (quarterly data)

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Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Price to earnings (P/E) 32.57 38.12 38.68 36.64 31.27 31.08 28.70 24.26 31.59 27.42 28.17 23.89 21.76 15.75 17.24 17.38
Price to operating profit (P/OP) 19.95 22.97 22.30 22.71 19.22 19.21 18.57 15.37 19.50 17.07 17.79 16.00 15.02 13.27 13.80 13.25
Price to sales (P/S) 3.30 3.85 3.75 3.65 3.07 3.12 3.06 2.64 3.41 3.11 3.24 2.97 2.81 2.46 2.58 2.44
Price to book value (P/BV) 8.30 9.29 8.42 7.68 6.28 6.54 6.71 6.06 7.46 7.09 7.66 6.99 6.68 5.80 6.22 5.89

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

P/E Ratio (Price to Earnings)

The P/E ratio demonstrated an overall upward trend from March 2018 to December 2021, beginning at 17.38 and reaching a peak of 38.68 in June 2021. Notably, there was a consistent increase across most quarters, with a significant rise observed between March 2019 and December 2019, followed by some volatility in 2020. The ratio declined slightly after June 2021, ending at 32.57 in the last reported quarter.

P/OP Ratio (Price to Operating Profit)

The P/OP ratio also exhibited an increasing trend over the period, starting at 13.25 in March 2018 and peaking at 22.97 in September 2021. The progression was relatively steady with notable upward movement during 2019 and 2021. Some minor fluctuations occurred in 2020; however, the overall trajectory indicates growing investor willingness to pay higher multiples for operating profits, suggesting improved market sentiment or expectations of future operating performance.

P/S Ratio (Price to Sales)

This ratio showed a gradual increase from 2.44 in March 2018 to a high of 3.85 in September 2021, implying strengthening valuation relative to sales. There was a modest decline in the last quarter of 2021, where the ratio dropped to 3.30. The data suggests consistent growth in sales valuation with slight corrections, reflecting possibly stable revenue growth or positive market outlook on sales prospects.

P/BV Ratio (Price to Book Value)

The P/BV ratio began at 5.89 in March 2018 and rose steadily to reach 9.29 in September 2021, indicating increasing market valuation relative to book value. This upward movement points to enhanced investor confidence in the company's underlying asset base or earning potential. A slight decrease occurred in the final quarter to 8.30, which may be attributed to market adjustments or valuation recalibration.

Overall Financial Valuation Trends

Across all ratios—P/E, P/OP, P/S, and P/BV—a consistent pattern of rising valuation multiples is observed from 2018 through 2021, with peaks typically in mid to late 2021. This trend reflects growing investor optimism about profitability, operating efficiency, sales growth, and asset value. The minor declines or fluctuations observed toward the end of 2021 suggest some moderation in market expectations or increased caution by investors. The overall pattern points to a favorable market environment supporting higher valuation levels over the analyzed period.

Price to Earnings (P/E)

Waste Management Inc., historical P/E calculation (quarterly data)

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Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
No. shares of common stock outstanding1 414,586,718 418,316,357 421,098,975 422,127,260 423,152,948 422,606,194 422,461,187 422,025,023 424,708,758 424,241,200 424,232,181 424,759,439 423,779,540 426,347,027 428,716,960 431,283,814
Selected Financial Data (US$)
Net income attributable to Waste Management, Inc. (in millions) 506 538 351 421 438 390 307 361 447 495 381 347 531 499 499 396
Earnings per share (EPS)2 4.38 4.18 3.80 3.69 3.54 3.56 3.81 3.99 3.93 4.13 4.14 4.42 4.54 5.39 5.09 4.75
Share price1, 3 142.68 159.28 146.96 135.06 110.56 110.67 109.38 96.80 124.23 113.37 116.72 105.52 98.84 84.84 87.84 82.50
Valuation Ratio
P/E ratio4 32.57 38.12 38.68 36.64 31.27 31.08 28.70 24.26 31.59 27.42 28.17 23.89 21.76 15.75 17.24 17.38

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2021 Calculation
EPS = (Net income attributable to Waste Management, Inc.Q4 2021 + Net income attributable to Waste Management, Inc.Q3 2021 + Net income attributable to Waste Management, Inc.Q2 2021 + Net income attributable to Waste Management, Inc.Q1 2021) ÷ No. shares of common stock outstanding
= (506,000,000 + 538,000,000 + 351,000,000 + 421,000,000) ÷ 414,586,718 = 4.38

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

4 Q4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 142.68 ÷ 4.38 = 32.57

Share Price Trend
The share price experienced a general upward trend from March 2018 to December 2021. It started at $82.50 in March 2018 and rose steadily, reaching a peak of $159.28 in September 2021. A notable dip occurred in March 2020, where the price fell to $96.80, likely reflecting broader market conditions, before recovering and advancing to higher levels by the end of 2021.
Earnings Per Share (EPS) Trend
EPS showed a declining trajectory over the analyzed periods. Beginning at $4.75 in March 2018, EPS gradually decreased with minor fluctuations, reaching a low point near $3.54 in December 2020. After this, EPS showed signs of recovery, increasing to $4.38 by December 2021. The decline from 2018 to 2020 suggests pressure on profitability, followed by a period of improvement.
Price to Earnings (P/E) Ratio Trend
The P/E ratio demonstrated an overall rising trend, indicating increasing market valuation relative to earnings. Starting at 17.38 in March 2018, it exhibited fluctuations but generally trended upward, hitting its highest point of 38.68 in June 2021. Despite some variability, including a dip in early 2020 coinciding with the drop in share price and EPS, the P/E ratio increased substantially by the end of 2021.
Interrelation Among Metrics
The data reveals an interesting dynamic between share price, EPS, and P/E ratio. While EPS declined for much of the period, the share price rose significantly, resulting in an increasing P/E ratio. This implies that investor expectations and valuation multiples increased even as earnings temporarily weakened, possibly reflecting confidence in future growth prospects or external market influences.

Price to Operating Profit (P/OP)

Waste Management Inc., historical P/OP calculation (quarterly data)

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Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
No. shares of common stock outstanding1 414,586,718 418,316,357 421,098,975 422,127,260 423,152,948 422,606,194 422,461,187 422,025,023 424,708,758 424,241,200 424,232,181 424,759,439 423,779,540 426,347,027 428,716,960 431,283,814
Selected Financial Data (US$)
Income from operations (in millions) 718 806 791 650 654 680 527 573 655 734 696 621 767 699 715 608
Operating profit per share2 7.15 6.93 6.59 5.95 5.75 5.76 5.89 6.30 6.37 6.64 6.56 6.60 6.58 6.39 6.36 6.23
Share price1, 3 142.68 159.28 146.96 135.06 110.56 110.67 109.38 96.80 124.23 113.37 116.72 105.52 98.84 84.84 87.84 82.50
Valuation Ratio
P/OP ratio4 19.95 22.97 22.30 22.71 19.22 19.21 18.57 15.37 19.50 17.07 17.79 16.00 15.02 13.27 13.80 13.25

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2021 Calculation
Operating profit per share = (Income from operationsQ4 2021 + Income from operationsQ3 2021 + Income from operationsQ2 2021 + Income from operationsQ1 2021) ÷ No. shares of common stock outstanding
= (718,000,000 + 806,000,000 + 791,000,000 + 650,000,000) ÷ 414,586,718 = 7.15

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

4 Q4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 142.68 ÷ 7.15 = 19.95

The analysis of the quarterly financial data reveals distinct trends in the share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the examined periods.

Share Price
The share price demonstrated an overall upward trajectory from the first quarter of 2018 through the end of 2021, although this movement was punctuated by volatility. Initial growth was steady from $82.5 to a peak near $124.23 by the end of 2019. There was a noticeable decline in early 2020 coinciding with broader market disruptions, with share price dropping to approximately $96.8 by the first quarter of 2020. Subsequently, the share price recovered and reached its highest levels toward the last two quarters of 2021, peaking at $159.28 before moderating slightly to $142.68.
Operating Profit per Share
This metric showed relative stability over the observed periods, fluctuating within a narrower range compared to the share price. It rose steadily from around $6.23 at the start of 2018 to just above $6.64 by the end of 2019. During 2020, a decline was observed, dropping to a low near $5.75. However, by late 2021, operating profit per share recovered robustly to reach approximately $7.15, representing the highest figure in the data set, indicating improved operational efficiency or profitability.
Price to Operating Profit (P/OP) Ratio
The P/OP ratio exhibits a general increasing trend, reflecting increasing market valuation multiples relative to operating profit. Starting near 13.25 in early 2018, the ratio climbed steadily, with notable jumps in the second half of 2019, reaching almost 19.5. Despite short-term fluctuations during 2020, the ratio peaked in early to mid-2021 at levels above 22, before retreating slightly towards the end of 2021. This rise in ratio suggests elevated investor expectations or improved market sentiment even when operating profit growth was more modest.

In summary, the analyzed metrics reveal a pattern of share price growth accompanied by a steady increase in valuation multiples, despite some temporary setbacks during 2020 likely linked to external economic factors. Operating profit per share showed resilience, with a strong recovery following a mid-period dip, supporting the upward movements in share price and valuation ratios observed by the end of the timeframe.

Price to Sales (P/S)

Waste Management Inc., historical P/S calculation (quarterly data)

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Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
No. shares of common stock outstanding1 414,586,718 418,316,357 421,098,975 422,127,260 423,152,948 422,606,194 422,461,187 422,025,023 424,708,758 424,241,200 424,232,181 424,759,439 423,779,540 426,347,027 428,716,960 431,283,814
Selected Financial Data (US$)
Operating revenues (in millions) 4,678 4,665 4,476 4,112 4,067 3,861 3,561 3,729 3,846 3,967 3,946 3,696 3,842 3,822 3,739 3,511
Sales per share2 43.25 41.40 39.22 36.96 35.96 35.49 35.75 36.70 36.39 36.42 36.08 35.55 35.19 34.54 34.10 33.75
Share price1, 3 142.68 159.28 146.96 135.06 110.56 110.67 109.38 96.80 124.23 113.37 116.72 105.52 98.84 84.84 87.84 82.50
Valuation Ratio
P/S ratio4 3.30 3.85 3.75 3.65 3.07 3.12 3.06 2.64 3.41 3.11 3.24 2.97 2.81 2.46 2.58 2.44

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2021 Calculation
Sales per share = (Operating revenuesQ4 2021 + Operating revenuesQ3 2021 + Operating revenuesQ2 2021 + Operating revenuesQ1 2021) ÷ No. shares of common stock outstanding
= (4,678,000,000 + 4,665,000,000 + 4,476,000,000 + 4,112,000,000) ÷ 414,586,718 = 43.25

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

4 Q4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 142.68 ÷ 43.25 = 3.30

The share price of the company exhibited an overall upward trend from March 2018 through December 2021, with notable fluctuations. The price increased steadily from $82.5 in March 2018 to a peak of $124.23 in December 2019. Following this peak, there was a dip in March 2020 to $96.8, likely reflecting broader market impacts during that period. Subsequently, the share price recovered and continued to rise, reaching a high of $159.28 in September 2021 before experiencing a slight decline to $142.68 by December 2021.

Sales per share demonstrated consistent growth throughout the entire period. Beginning at $33.75 in March 2018, the figure increased with only minor variations, reaching $43.25 by December 2021. This steady increase indicates a positive revenue generation trend on a per-share basis.

The price-to-sales (P/S) ratio followed a pattern influenced by both the share price and sales per share trends. Initially, it rose from 2.44 in March 2018 to a high of 3.41 in December 2019. There was a decline to 2.64 in March 2020, coinciding with the drop in share price, before climbing again to peak at 3.85 in September 2021. Toward the end of the period, the P/S ratio decreased slightly to 3.3 in December 2021.

Overall, the data indicates a company performing well in terms of sales growth that positively impacted the share price over the evaluated quarters. The P/S ratio movements suggest investor valuation adjusted with market and company-specific conditions, reflecting confidence rebounding in the later stages after early 2020 volatility.

Price to Book Value (P/BV)

Waste Management Inc., historical P/BV calculation (quarterly data)

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Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
No. shares of common stock outstanding1 414,586,718 418,316,357 421,098,975 422,127,260 423,152,948 422,606,194 422,461,187 422,025,023 424,708,758 424,241,200 424,232,181 424,759,439 423,779,540 426,347,027 428,716,960 431,283,814
Selected Financial Data (US$)
Total Waste Management, Inc. stockholders’ equity (in millions) 7,124 7,172 7,352 7,427 7,452 7,155 6,891 6,743 7,068 6,785 6,466 6,415 6,275 6,239 6,054 6,044
Book value per share (BVPS)2 17.18 17.14 17.46 17.59 17.61 16.93 16.31 15.98 16.64 15.99 15.24 15.10 14.81 14.63 14.12 14.01
Share price1, 3 142.68 159.28 146.96 135.06 110.56 110.67 109.38 96.80 124.23 113.37 116.72 105.52 98.84 84.84 87.84 82.50
Valuation Ratio
P/BV ratio4 8.30 9.29 8.42 7.68 6.28 6.54 6.71 6.06 7.46 7.09 7.66 6.99 6.68 5.80 6.22 5.89

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2021 Calculation
BVPS = Total Waste Management, Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 7,124,000,000 ÷ 414,586,718 = 17.18

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

4 Q4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 142.68 ÷ 17.18 = 8.30

Share Price
The share price experienced a general upward trend from March 2018 to December 2021, increasing from $82.50 to a peak of $159.28 in September 2021 before slightly declining to $142.68 by the end of the period. Notable growth periods include the second quarter of 2019 and the first three quarters of 2021, reflecting positive market sentiment during these intervals. There was a significant dip observed in March 2020, aligning with broader market disruptions, but the price showed resilience by recovering and continuing its upward trajectory.
Book Value per Share (BVPS)
Book value per share displayed a consistent, moderate increase over the analyzed quarters. Starting at $14.01 in the first quarter of 2018, BVPS rose steadily to reach $17.18 by the last quarter of 2021. This gradual growth indicates an accumulation of net assets relative to outstanding shares, reflecting stable financial strengthening of the company without volatile fluctuations.
Price-to-Book Value Ratio (P/BV)
The price-to-book ratio exhibited considerable variation across the quarters, ranging from a low of 5.80 to a high of 9.29. This ratio generally increased in line with the upward trend of the share price, especially notable in the periods following March 2019 and continuing upward through 2021. The P/BV ratio peaked in the third quarter of 2021 at 9.29, suggesting a high market valuation relative to book value, before declining somewhat towards the end of 2021. The fluctuations highlight changing investor sentiment and market expectations about the company's future profitability and growth prospects.
Overall Insights
The upward trends in both share price and book value per share suggest steady growth and strengthening equity base. Meanwhile, the fluctuating but generally increasing P/BV ratio points to varying investor confidence levels, with market valuations sometimes stretching beyond the net asset values. The dip in share price around early 2020 corresponds with external economic factors, but subsequent recovery and growth indicate resilience and positive outlook as perceived by investors. The data reflects a company that is expanding its intrinsic value over time while attracting market interest, particularly in the most recent years analyzed.