How Does This Waste Operator Work?
Waste Management runs an integrated waste-services business built around collection, transfer, recycling, and disposal. The company serves customers that need recurring pickup and reliable handling of waste streams, with operations tied to physical routes and owned infrastructure. Its model is built on executing day-to-day service at scale while managing the economics of processing and disposal. At roughly USD 93.2 billion in market value, it sits among the larger operators in its field.
Are Margins and Growth Still Holding Up?
FundamentalsFor 2025, reported in USD, revenue reached USD 25.2 billion, with EBIT of USD 4.3 billion and net income of USD 2.7 billion. The business converted that revenue into a 17.09% operating margin and a 10.74% net profit margin over the trailing period, alongside a 40.44% gross margin.
Depreciation and amortization totaled USD 2.9 billion, and the cash flow proxy was about USD 6.5 billion. The balance sheet showed USD 201 million of cash against USD 22.2 billion of total debt, while ROE over the trailing period was 28.99%. Revenue grew 14.2% versus the prior annual period.
Is The Market Paying Too Much Now?
DCF / MultiplesAt USD 231.43, the stock trades above the weaker DCF outcome but below the central and stronger outcomes from the same framework. The pricing also aligns with a 34.03x trailing P/E and 15.97x EV/EBITDA, placing a relatively full multiple set next to a valuation range that still spans meaningfully higher scenarios.
Steady Execution Supports Optimism
TakeawayOperations are delivering scale revenue with repeatable margins. The case relies on keeping margins steady as revenue grows. Cash generation needs to stay resilient alongside heavy asset wear. Debt adds pressure if operating conditions soften. Overall, execution looks durable enough to support a constructive view.