Waste Management

WM · NYSE · Industrials · Financials, fiscal 2016 to 2025

WM · Last close · October 26, 2026

$241.02

Waste Management's revenue rose 14.2% to $25.2 billion in fiscal 2025. Its operating margin was 17.1%, down from 18.4% a year earlier. Free cash flow was $2.8 billion, up 30.4%. It paid out $1.3 billion in dividends and buybacks, 47% of free cash flow. The diluted share count rose 0.2%.

WASTE MANAGEMENT INC Latest fiscal year ended December 31, 2025 10-K filed February 9, 2026 · 0001104659-26-012049 Updated October 9, 2026

Revenue

$25.2B

14.2%

Operating margin

17.1%

1.3 pts

Net income

$2.7B

1.4%

Free cash flow

$2.8B

30.4%

Return on capital

10.9%

1.3 pts

Market cap

$97.0B

Oct 26 close

P/E

34.1x

On $7.06 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Waste Management does

Waste Management, called WM, collects, moves, treats and disposes of waste in the United States and Canada. Its local operating units provide collection, transfer, disposal, recycling and resource recovery services. WM is a holding company, and its operations are run by subsidiaries.

It reports several lines of business. Its solid waste business is the core. A Renewable Energy segment turns landfill gas into electricity and renewable natural gas, some of which fuels WM's own natural gas trucks. A Recycling Processing and Sales segment handles recycled materials. After buying Stericycle in 2024, WM also has a Healthcare Solutions segment, which handles regulated medical waste, compliance services and secure information destruction in the United States, Canada and Western Europe. WM says the environmental services industry is highly competitive.

WM is based in Houston, Texas. Its results depend on volumes, fuel prices and the prices of recycled materials.

Its biggest risks, as it describes them

Not gaining the benefits it expects from the Stericycle acquisition.
Strict environmental rules, and difficulty getting or keeping permits for its landfills.
Operating and safety risks, including injuries to employees and others.
Swings in recycled commodity prices and in demand for its services.
Rising labor costs from union organizing or pension plan withdrawals.

From Waste Management's annual report on Form 10-K, filed February 9, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 10.9% a year and net income 9.6% a year, as buybacks cut the share count by 9%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Waste Management yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Waste Management's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Waste Management's fiscal 2025 free cash flow of $2.8B, net cash of −$22.0B at December 31, 2025 and 404 million diluted shares, from its filings. The scenarios are fitted to Waste Management: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 8.6% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 7% for a stable business (Environmental & Facilities Services); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Waste Management's own revenue growth, as above. Cautious: growth of 4.5% then 3% a year, 2% after year 10, a 8% discount rate. Base: growth of 8.5% then 5.5% a year, 2.5% after year 10, a 7% discount rate. Optimistic: growth of 13% then 8% a year, 3% after year 10, a 6% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $241.02
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Waste Management's earnings per share of $7.06 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 30.4×, the middle of Waste Management's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 8%, 7% and 6%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Republic Services, ABM Industries, Clean Harbors, Veralto.

Earnings growth in the years ahead (% a year) Starts at Waste Management's revenue growth over the last 3 years, 8.6% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $241.02
Value at this multiple, against the last close: —
Waste Management's P/E at the last close: 34.1×

Company	Last close	Earnings per share	P/E today
Clean HarborsCLH	$317.09	$7.39	42.9×
Republic ServicesRSG	$241.31	$7.05	34.2×
Waste ManagementWM	$241.02	$7.06	34.1×
VeraltoVLTO	$103.35	$3.88	26.6×
ABM IndustriesABM	$54.04	$2.77	19.5×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	0.1	0.4	0.5	0.4	0.2
Debt incl. finance leases	12.7	14.6	15.9	22.5	22.2
Net debt (negative means net cash)	12.6	14.2	15.4	22.1	22.0
Net debt to EBITDA	2.5x	2.6x	2.7x	3.5x	3.1x
Debt to equity	1.8x	2.1x	2.3x	2.7x	2.2x
Interest coverage	7.7x	9.7x	8.0x	7.7x	4.7x
Current ratio	0.8x	0.8x	0.9x	0.8x	0.9x
Quick ratio	0.8x	0.8x	0.9x	0.8x	0.9x

US$ billions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, 1 insider bought $392,840 of Waste Management shares on the open market, and 12 insiders sold $24.2 million, $20.9 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Sep 4, 2026	John A. CarrollVP & Chief Accounting Officer	Sold	1,365	$219.90	$300,164	Form 4
Jun 5, 2026	Rafael CarrascoSVP of Enterprise Strategy	Sold	2,655	$220.47	$585,348	Form 4
Mar 9, 2026	John J MorrisPresident & COO	Sold plan	4,211	$243.38	$1.0 million	Form 4
Mar 9, 2026	Johnson VarkeySVP-Chief Information Officer	Sold plan	121	$245.27	$29,678	Form 4
Mar 9, 2026	David L. ReedEVP & CFO	Sold plan	75	$245.26	$18,394	Form 4
Mar 9, 2026	Christopher P. DeSantisSVP Operations - East	Sold plan	61	$245.50	$14,976	Form 4
Mar 9, 2026	John A. CarrollVP & Chief Accounting Officer	Sold plan	47	$245.30	$11,529	Form 4
Mar 6, 2026	John J MorrisPresident & COO	Sold plan	7,979	$245.07	$2.0 million	Form 4
Mar 3, 2026	Johnson VarkeySVP-Chief Information Officer	Sold	617	$244.13	$150,628	Form 4
Mar 2, 2026	Michael J. WatsonSr. VP-Chief Customer Officer	Sold plan	17,251	$241.82	$4.2 million	Form 4
Mar 2, 2026	Tara J. HemmerSVP & Chief Sustainability Off	Sold plan	4,818	$241.83	$1.2 million	Form 4
Mar 2, 2026	Kimberly G. StithSVP - Chief HR Officer	Sold plan	21	$243.13	$5,106	Form 4

The latest 12 of 34 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Fail	Pass
Current ratio rose	Pass	Fail	Pass
Share count didn't rise	Pass	Pass	Fail
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Fail	Pass	Fail
F-score	6 of 9	7 of 9	6 of 9
Accruals ratio	−7.5%	−6.8%	−7.4%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Waste Management side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Waste Management	FY25	14.2%	17.1%	11.2%	10.9%	3.1x	6
Republic Services	FY25	3.3%	17.4%	12.7%	10.8%	2.7x	8	Compare
ABM Industries	FY25	4.6%	3.6%	1.8%	7.3%	3.5x	7	Compare
Clean Harbors	FY25	2.4%	11.2%	7.3%	10.4%	1.8x	7	Compare
Veralto	FY25	6.0%	23.2%	18.4%	28.1%	0.5x	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	13.6	14.5	14.9	15.5	15.2	17.9	19.7	20.4	22.1	25.2
Revenue growth	5.0%	6.4%	3.0%	3.6%	−1.5%	17.8%	9.8%	3.7%	8.0%	14.2%
Gross profit	5.1	5.5	5.7	6.0	5.9	6.8	7.4	7.8	8.7	10.2
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	2.3	2.6	2.8	2.7	2.4	3.0	3.4	3.6	4.1	4.3
Net income	1.2	1.9	1.9	1.7	1.5	1.8	2.2	2.3	2.7	2.7
Diluted EPS (US$)	2.65	4.41	4.45	3.91	3.52	4.29	5.39	5.66	6.81	6.70
Diluted shares (millions)	446	442	432	428	425	423	415	407	403	404
Cash flow
Cash from operations	3.0	3.2	3.6	3.9	3.4	4.3	4.5	4.7	5.4	6.0
Capital expenditure	1.3	1.6	1.7	1.8	1.6	2.0	2.8	2.9	3.2	3.2
Free cash flow	1.7	1.6	1.9	2.1	1.8	2.3	1.7	1.8	2.2	2.8
Dividends paid	0.7	0.8	0.8	0.9	0.9	1.0	1.1	1.1	1.2	1.3
Share buybacks	0.7	0.8	1.0	0.2	0.4	1.4	1.5	1.3	0.3	0.0
Acquisitions	0.6	0.2	0.5	0.5	4.1	0.1	0.4	0.2	7.5	0.4
Stock-based compensation	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.2
Balance sheet at fiscal year end
Cash and short-term investments	0.0	0.0	0.1	3.6	0.6	0.1	0.4	0.5	0.4	0.2
Debt incl. finance leases	8.9	8.8	9.6	13.3	13.3	12.7	14.6	15.9	22.5	22.2
Total assets	20.9	21.8	22.6	27.7	29.3	29.1	31.4	32.8	44.6	45.8
Total liabilities	15.5	15.8	16.4	20.7	21.9	22.0	24.5	25.9	36.3	35.8
Shareholders' equity	5.3	6.0	6.3	7.1	7.5	7.1	6.8	6.9	8.3	10.0
Margins and ratios
Gross margin	37.6%	37.7%	38.0%	38.6%	38.6%	38.0%	37.6%	38.3%	39.3%	40.4%
Operating margin	16.9%	18.2%	18.7%	17.5%	16.0%	16.5%	17.1%	17.5%	18.4%	17.1%
Net margin	8.7%	13.5%	12.9%	10.8%	9.8%	10.1%	11.4%	11.3%	12.4%	10.7%
Free cash flow margin	12.2%	11.1%	12.7%	13.3%	11.9%	12.8%	8.8%	8.9%	9.8%	11.2%
Return on capital	—	16.2%	14.8%	13.2%	10.4%	11.5%	12.7%	12.4%	12.2%	10.9%
Return on equity	22.2%	34.5%	31.3%	25.0%	20.6%	24.9%	32.0%	33.5%	36.2%	29.7%
Return on assets	5.7%	9.1%	8.7%	6.6%	5.2%	6.2%	7.4%	7.2%	7.1%	6.0%
Net debt to EBITDA	2.5x	2.2x	2.2x	2.3x	3.1x	2.5x	2.6x	2.7x	3.5x	3.1x

US$ billions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Waste Management's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Waste Management.