WMWaste Management

$208.80-2.1% 1Y

Is the business good?

Mixed

The checks split: earnings fully cash-backed (1.8×), but returns that lean on debt.

1 good, 1 to watch, 2 neutral
Fundamental health (F-score)6 / 9SEC EDGAR · Dec 31, 2025

Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.

Profits arrive as cash1.83×derived · Jun 30, 2026

Operating profit is fully backed by cash. Conversion is improving vs a year ago.

Margin direction, 3 years+0.2 pts

Profits are tracking sales roughly one-for-one, limited operating leverage either way.

Where ROE comes from4.7× leverage

Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 28% = margin × turnover × leverage.

Unless marked, from derived.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

FCF conversionmiddle of the market
Leverage (Debt/EBITDA)middle of the market

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

How good a business is WM?

Waste Management earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.

11%

Return on invested capital · cost of capital 9.0% · 1.9 points above what the capital costs: growth creates value

Operating margin
18%

Operating margin · Waste Management median 11% · 12 months to Q2 2026

Cash conversion
1.83×

Cash conversion · 1.68× a year ago · operating cash flow covers the operating profit after tax

Share count, year on year
−0.47%

Share count, year on year · flat: no meaningful dilution

Operating margin by fiscal year
YearOperating margin
FY202016%
FY202117%
FY202217%
FY202318%
FY202418%
FY202517%
Details›
Gross margin12 months to Q2 2026
41%
Operating margin12 months to Q2 2026
18%
Net margin12 months to Q2 2026
11%
Free cash flow margin
14%
Revenue, trailing twelve months
$25.7B
Free cash flow, trailing twelve months
$3.57B
Net income, trailing twelve months
$2.85B
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
11%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.