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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.02
WM's Cash to Debt is ranked lower than
58% of the 170 Companies
in the Global Waste Management industry.

( Industry Median: 0.47 vs. WM: 0.02 )
WM' s 10-Year Cash to Debt Range
Min: 0.01   Max: 0.13
Current: 0.02

0.01
0.13
Equity to Asset 0.25
WM's Equity to Asset is ranked lower than
54% of the 164 Companies
in the Global Waste Management industry.

( Industry Median: 0.46 vs. WM: 0.25 )
WM' s 10-Year Equity to Asset Range
Min: 0.19   Max: 0.44
Current: 0.25

0.19
0.44
Interest Coverage 2.24
WM's Interest Coverage is ranked lower than
56% of the 86 Companies
in the Global Waste Management industry.

( Industry Median: 5.36 vs. WM: 2.24 )
WM' s 10-Year Interest Coverage Range
Min: 1.72   Max: 4.91
Current: 2.24

1.72
4.91
F-Score: 5
Z-Score: 1.68
M-Score: -2.98
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 7.72
WM's Operating margin (%) is ranked higher than
76% of the 167 Companies
in the Global Waste Management industry.

( Industry Median: 4.97 vs. WM: 7.72 )
WM' s 10-Year Operating margin (%) Range
Min: 7.72   Max: 19.89
Current: 7.72

7.72
19.89
Net-margin (%) 0.70
WM's Net-margin (%) is ranked higher than
59% of the 167 Companies
in the Global Waste Management industry.

( Industry Median: 2.48 vs. WM: 0.70 )
WM' s 10-Year Net-margin (%) Range
Min: -7.84   Max: 9.04
Current: 0.7

-7.84
9.04
ROE (%) 1.72
WM's ROE (%) is ranked higher than
63% of the 172 Companies
in the Global Waste Management industry.

( Industry Median: 3.38 vs. WM: 1.72 )
WM' s 10-Year ROE (%) Range
Min: -24.35   Max: 20.08
Current: 1.72

-24.35
20.08
ROA (%) 0.43
WM's ROA (%) is ranked higher than
61% of the 174 Companies
in the Global Waste Management industry.

( Industry Median: 1.59 vs. WM: 0.43 )
WM' s 10-Year ROA (%) Range
Min: -4.66   Max: 8.9
Current: 0.43

-4.66
8.9
ROC (Joel Greenblatt) (%) 8.74
WM's ROC (Joel Greenblatt) (%) is ranked higher than
70% of the 171 Companies
in the Global Waste Management industry.

( Industry Median: 9.79 vs. WM: 8.74 )
WM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 8.74   Max: 82.81
Current: 8.74

8.74
82.81
Revenue Growth (%) 4.70
WM's Revenue Growth (%) is ranked higher than
74% of the 129 Companies
in the Global Waste Management industry.

( Industry Median: 5.30 vs. WM: 4.70 )
WM' s 10-Year Revenue Growth (%) Range
Min: -57.3   Max: 171.5
Current: 4.7

-57.3
171.5
EBITDA Growth (%) -10.50
WM's EBITDA Growth (%) is ranked higher than
62% of the 96 Companies
in the Global Waste Management industry.

( Industry Median: 6.30 vs. WM: -10.50 )
WM' s 10-Year EBITDA Growth (%) Range
Min: -60.2   Max: 101.6
Current: -10.5

-60.2
101.6
EPS Growth (%) -52.70
WM's EPS Growth (%) is ranked lower than
51% of the 83 Companies
in the Global Waste Management industry.

( Industry Median: 11.20 vs. WM: -52.70 )
WM' s 10-Year EPS Growth (%) Range
Min: -55.7   Max: 26
Current: -52.7

-55.7
26
» WM's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

WM Guru Trades in Q2 2013

Steven Cohen 6,411 sh (New)
Jim Simons 143,500 sh (New)
Joel Greenblatt 15,979 sh (New)
Manning & Napier Advisors, Inc 76,416 sh (+4.99%)
Mario Gabelli 1,124,501 sh (+2.86%)
David Dreman 85,288 sh (+0.08%)
Louis Moore Bacon 300,000 sh (unchged)
Bill Gates 18,633,672 sh (unchged)
John Burbank Sold Out
Louis Moore Bacon Sold Out
Jeff Auxier 13,780 sh (-0.72%)
John Buckingham 159,615 sh (-0.73%)
NWQ Managers 25,042 sh (-67.71%)
» More
Q3 2013

WM Guru Trades in Q3 2013

Jeremy Grantham 22,900 sh (New)
Jim Simons 749,900 sh (+422.58%)
Joel Greenblatt 82,961 sh (+419.19%)
Steven Cohen 16,996 sh (+165.11%)
Mario Gabelli 1,191,967 sh (+6%)
John Buckingham 160,818 sh (+0.75%)
Bill Gates 18,633,672 sh (unchged)
Jeff Auxier 13,780 sh (unchged)
Manning & Napier Advisors, Inc 76,281 sh (-0.18%)
NWQ Managers 18,301 sh (-26.92%)
David Dreman 2,213 sh (-97.41%)
» More
Q4 2013

WM Guru Trades in Q4 2013

Paul Tudor Jones 5,432 sh (New)
Pioneer Investments 40,904 sh (New)
Mario Gabelli 1,220,067 sh (+2.36%)
Jim Simons 750,600 sh (+0.09%)
Jeff Auxier 13,780 sh (unchged)
Bill Gates 18,633,672 sh (unchged)
John Buckingham 160,355 sh (-0.29%)
Joel Greenblatt 80,554 sh (-2.9%)
Jeremy Grantham 21,100 sh (-7.86%)
NWQ Managers 13,509 sh (-26.18%)
Manning & Napier Advisors, Inc 48,708 sh (-36.15%)
Steven Cohen 5,694 sh (-66.5%)
David Dreman 610 sh (-72.44%)
» More
Q1 2014

WM Guru Trades in Q1 2014

Manning & Napier Advisors, Inc 105,839 sh (+117.29%)
» More
» Details

Insider Trades

Latest Guru Trades with WM

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
David Dreman 2013-12-31 Reduce -72.44%0.01%$40.4 - $46.1 $ 41.99-4%610
David Dreman 2013-09-30 Reduce -97.41%0.1%$39.85 - $43.5 $ 41.991%2213
Joel Greenblatt 2013-09-30 Add 419.19%0.09%$39.85 - $43.5 $ 41.991%82961
Joel Greenblatt 2013-06-30 New Buy0.03%$38.14 - $42.75 $ 41.994%15979
John Burbank 2013-06-30 Sold Out 0.02%$38.14 - $42.75 $ 41.994%0
John Burbank 2013-03-31 New Buy0.02%$33.74 - $39.21 $ 41.9916%12761
Ray Dalio 2012-12-31 Sold Out 0.01%$30.96 - $34.33 $ 41.9929%0
Meridian Funds 2012-09-30 Sold Out 0.02%$31.58 - $35.66 $ 41.9925%0
Ray Dalio 2012-09-30 New Buy0.01%$31.58 - $35.66 $ 41.9925%17928
Meridian Funds 2012-03-31 Reduce -94.04%0.24%$32.35 - $35.64 $ 41.9929%14290
Ray Dalio 2012-03-31 Sold Out 0.15%$32.35 - $35.64 $ 41.9929%0
Ray Dalio 2011-12-31 New Buy0.15%$29.83 - $34.68 $ 41.9931%269257
David Dreman 2011-12-31 New Buy0.07%$29.83 - $34.68 $ 41.9931%91645
Meridian Funds 2011-09-30 Reduce -36.54%0.15%$28.17 - $38 $ 41.9928%239690
Ray Dalio 2011-09-30 Sold Out 0.01%$28.17 - $38 $ 41.9929%0
Mario Gabelli 2011-03-31 Reduce -53.31%0.38%$36.04 - $38.34 $ 41.9913%1234107
Meridian Funds 2011-03-31 Reduce -42.27%0.31%$36.04 - $38.34 $ 41.9913%377690
George Soros 2011-03-31 Sold Out $36.04 - $38.34 $ 41.9913%0
Premium More recent guru trades are included for Premium Members only!!
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Peter Lynch Chart ( What is Peter Lynch Charts )

Top Ranked Articles about Waste Management Inc

GuruFocus Dividend Growers of the Week
During the past week, GuruFocus recognized five companies as dividend growers. In order to be qualified for this list, the company had to:
Have a dividend of greater than 3%. Have a strong history of stable and increasing dividends. Maintain Guru ownership. Have a market cap of greater than $10 billion. The following five companies come from various industries and sectors of the market, but they all fit the necessary criteria needed to qualify them as dividend growers.
A comparison of the companies’ historical dividend growth:

Centrica PLC (CPYYY)
On Feb. 28, Centrica PLC declared a dividend of $0.79 per share, representing 4.67% dividend yield for the company. This dividend is payable on June 23 to shareholders of the record at the close of business on April 25, 2014.


The company’s historical dividend growth is as follows:
- 10-year: 5.70%
- 5-year: 4.80%
- 3-year: 8.20%

Centrica PLC is engaged in the integrated energy business. Its business is operated through four major brands: British Gas, Centrica Energy, Centrica Storage, and Direct Energy.
Centrica’s historical revenue and net income:

The analysis on Centrica reports that the company’s revenue has been in decline over the past five years, its operating margin is expanding and its dividend yield is at a 3-year high. It also reports that over the past year the company has issued GBP664 million of debt and that its P/B and P/S ratios are trading at historic lows.
The Peter Lynch Chart suggests that the company is currently overvalued:

There are currently no gurus that hold a position in Centrica.
Centrica PLC has a market cap of $27.79 billion. Its shares are currently trading at around $21.90 per share with a P/E ratio of 13.20, a P/S ratio of 0.70 and a P/B ratio of 2.85. The company had an annual average earnings growth of 7.90% over the past ten years.
Barclays Africa Group Limited (AGRPY)
On Feb. 28, Barclays Africa Group declared a dividend of $0.723 per share, representing 5.13% dividend yield for the company. This dividend is payable on April 17 to shareholders of the record at the close of business on April 4, 2014.


The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 28.10%
- 3-year: 29.40%

Barclays Africa Group Limited, formerly ABSA Group Ltd, provides banking, assurance, and wealth management products and services in South Africa. It provides retail banking products and services, including home loans; vehicle loans.
Barclays Africa Group’s historical revenue and net income:

The analysis on Barclays reports that the company’s revenue has been in decline over the past three years, it has issued ZAR320.2 million of debt over the past year and its dividend payout ratio is too high, indicating that the dividend may not be sustainable. It also notes that the company’s P/E, P/B and P/S ratios are trading at historical lows.
The Peter Lynch Chart suggests that the company is currently undervalued:

There are currently no gurus that hold a position in Barclays Africa.
Barclays Africa Group Limited has a market cap of $10.4 billion. Its shares are currently trading at around $24.55 with a P/E ratio of 11.50, a P/S ratio of 3.00 and a P/B ratio of 0.80.
Waste Management (WM)
On Feb. 25, Waste Management declared a dividend of $0.375 per share, representing 3.55% dividend yield for the company. This dividend is payable on March 21 to shareholders of the record at the close of business on March 10, 2014.


The company’s historical dividend growth is as follows:
- 10-year: 8.30%
- 5-year: 6.00%
- 3-year: 5.00%

Waste Management is a provider of waste management services in North America. The company's subsidiaries provide collection, transfer, recycling, and disposal services. It is also a developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the U.S.
Waste Management’s historical revenue and net income:

The analysis on Waste Management reports that the company has issued $975 million of debt in the past three years, their revenue has been in decline over the past three years and their growth and operating margins have been in a five-year decline.
There are thirteen gurus that hold a position in Waste Management. Check out their holding histories here.
Waste Management has a market cap of $19.18 billion. Its shares are currently trading at around $41.26 with a P/E ratio of 200.30, a P/S ratio of 1.40 and a P/B ratio of 3.40. The company had an annual average earnings growth of 1.20% over the past ten years.
Kumba Iron Ore (KIROY)
On Feb. 25, Kumba Iron Ore declared a dividend of $0.507 per share, representing 7.04% dividend yield for the company. This dividend is payable on March 27 to shareholders of the record at the close of business on March 14, 2014.


The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 33.60%
- 3-year: 5.10%

Kumba Iron Ore Limited is a value-adding supplier of quality iron ore to the global steel industry. The Company together with its subsidiaries engaged in the exploration, extraction, beneficiation, marketing, sale, and shipping of iron ore in South Africa. Its main products include lump and fine ores.
Kumba Iron Ore’s historical revenue and net income:

The analysis on Kumba Iron Ore reports that the company’s revenue has been in decline over the past year, the company has issued ZAR$178.3 million of debt over the past year and it has a poor stock buyback record. On the other hand Kumba’s operating margin is expanding, its dividend yield is at a 10-year high and its P/E, P/B and P/S ratios are all trading at historical lows.
The Peter Lynch Chart suggests that the company is currently undervalued:

Kumba Iron Ore has a market cap of $12.1 billion. Its shares are currently trading at around $12.55 with a P/E ratio of 10.80, a P/S ratio of 2.90 and a P/B ratio of 6.90.
To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.

Try a free 7-day premium membership. Read more...
CenturyLink and Lorillard Top GuruFocus Dividend Growers
During the past week, GuruFocus recognized six companies as dividend growers. In order to be qualified for this list, the company had to: Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 203.80
WM's P/E(ttm) is ranked lower than
70% of the 105 Companies
in the Global Waste Management industry.

( Industry Median: 21.50 vs. WM: 203.80 )
WM' s 10-Year P/E(ttm) Range
Min: 10.92   Max: 218.01
Current: 203.8

10.92
218.01
P/B 3.42
WM's P/B is ranked lower than
61% of the 165 Companies
in the Global Waste Management industry.

( Industry Median: 1.61 vs. WM: 3.42 )
WM' s 10-Year P/B Range
Min: 1.85   Max: 3.65
Current: 3.42

1.85
3.65
P/S 1.41
WM's P/S is ranked lower than
51% of the 169 Companies
in the Global Waste Management industry.

( Industry Median: 0.88 vs. WM: 1.41 )
WM' s 10-Year P/S Range
Min: 0.89   Max: 1.61
Current: 1.41

0.89
1.61
PFCF 16.60
WM's PFCF is ranked higher than
70% of the 86 Companies
in the Global Waste Management industry.

( Industry Median: 17.80 vs. WM: 16.60 )
WM' s 10-Year PFCF Range
Min: 9.61   Max: 27.03
Current: 16.6

9.61
27.03
EV-to-EBIT 27.34
WM's EV-to-EBIT is ranked lower than
56% of the 132 Companies
in the Global Waste Management industry.

( Industry Median: 17.08 vs. WM: 27.34 )
WM' s 10-Year EV-to-EBIT Range
Min: 8.8   Max: 28.9
Current: 27.34

8.8
28.9
PEG 53.20
WM's PEG is ranked lower than
64% of the 69 Companies
in the Global Waste Management industry.

( Industry Median: 1.88 vs. WM: 53.20 )
WM' s 10-Year PEG Range
Min: 1.18   Max: 2422
Current: 53.2

1.18
2422
Shiller P/E 23.29
WM's Shiller P/E is ranked higher than
72% of the 69 Companies
in the Global Waste Management industry.

( Industry Median: 29.73 vs. WM: 23.29 )
WM' s 10-Year Shiller P/E Range
Min: 11.51   Max: 212.36
Current: 23.29

11.51
212.36

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.50
WM's Dividend Yield is ranked higher than
85% of the 101 Companies
in the Global Waste Management industry.

( Industry Median: 2.09 vs. WM: 3.50 )
WM' s 10-Year Dividend Yield Range
Min: 0.03   Max: 4.73
Current: 3.5

0.03
4.73
Dividend Payout 7.00
WM's Dividend Payout is ranked lower than
71% of the 68 Companies
in the Global Waste Management industry.

( Industry Median: 0.36 vs. WM: 7.00 )
WM' s 10-Year Dividend Payout Range
Min: 0.01   Max: 6.95
Current: 7

0.01
6.95
Dividend growth (3y) 5.00
WM's Dividend growth (3y) is ranked higher than
78% of the 59 Companies
in the Global Waste Management industry.

( Industry Median: 7.70 vs. WM: 5.00 )
WM' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 344.8
Current: 5

0
344.8
Yield on cost (5-Year) 4.68
WM's Yield on cost (5-Year) is ranked higher than
93% of the 107 Companies
in the Global Waste Management industry.

( Industry Median: 2.33 vs. WM: 4.68 )
WM' s 10-Year Yield on cost (5-Year) Range
Min: 0.04   Max: 6.33
Current: 4.68

0.04
6.33
Share Buyback Rate 0.90
WM's Share Buyback Rate is ranked higher than
91% of the 118 Companies
in the Global Waste Management industry.

( Industry Median: -2.50 vs. WM: 0.90 )
WM' s 10-Year Share Buyback Rate Range
Min: 4.3   Max: -148.3
Current: 0.9

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.29
WM's Price/DCF (Projected) is ranked higher than
60% of the 73 Companies
in the Global Waste Management industry.

( Industry Median: 1.10 vs. WM: 1.29 )
WM' s 10-Year Price/DCF (Projected) Range
Min: 0.92   Max: 24.55
Current: 1.29

0.92
24.55
Price/Median PS Value 1.04
WM's Price/Median PS Value is ranked higher than
62% of the 157 Companies
in the Global Waste Management industry.

( Industry Median: 1.00 vs. WM: 1.04 )
WM' s 10-Year Price/Median PS Value Range
Min: 0.18   Max: 1.76
Current: 1.04

0.18
1.76
Earnings Yield (Greenblatt) 3.70
WM's Earnings Yield (Greenblatt) is ranked lower than
51% of the 142 Companies
in the Global Waste Management industry.

( Industry Median: 6.10 vs. WM: 3.70 )
WM' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.5   Max: 11.4
Current: 3.7

3.5
11.4
Forward Rate of Return (Yacktman) 4.18
WM's Forward Rate of Return (Yacktman) is ranked higher than
71% of the 112 Companies
in the Global Waste Management industry.

( Industry Median: 5.79 vs. WM: 4.18 )
WM' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 3.1   Max: 17.4
Current: 4.18

3.1
17.4

Business Description

Industry: Waste Management » Waste Management
Compare:RSG, SRCL, CLH, UMICY, VE » details
Traded in other countries:UWS.Germany
Waste Management, Inc. was incorporated in Oklahoma in 1987 under the name "USA Waste Services, Inc." and was reincorporated as a Delaware company in 1995. The Company changed its name from USA Waste Services to Waste Management, Inc. in 1998. Waste Management is a provider of waste management services in North America. The Company's subsidiaries provide collection, transfer, recycling, and disposal services. It is also a developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States. Through its core waste management services, the Company owns or operates 271 landfill sites, In order to make disposal more practical for larger urban markets, where the distance to landfills or waste-to-energy facilities is typically farther, the Company manages 287 transfer stations that consolidate, compact and transport waste efficiently and economically. The Company also uses waste to create energy. One method the Company's use involves recovering the gas produced naturally as waste decomposes in landfills for use in the generation of electricity. It also uses waste to create energy through a highly efficient combustion process. The Company's waste-to-energy subsidiary, Wheelabrator Technologies Inc., operates 22 plants that produce clean, renewable energy. Through its recycling operations, the Company provides cost-efficient, environmentally sound programs for municipalities, businesses and households across the U.S. and Canada. In addition to traditional waste operations, the Company is also expanding to increase the service offerings it provides for customers. The Company currently manages and evaluates its principal operations through five groups. Its four geographic groups, which are comprised of Eastern, Midwest, Southern and Western groups, provide collection, transfer, disposal (in both solid waste and hazardous waste landfills) and recycling services. Its fifth Group is the Wheelabrator Group, which provides waste-to-energy services and manages waste-to-energy facilities and independent power production plants. Landfills are the main depositories for solid waste in North America. Solid waste landfills are constructed and operated on land with engineering safeguards that limit the possibility of water and air pollution, and are operated under procedures prescribed by regulation. The Company also operates five secure hazardous waste landfills in the United States. The Company has owned or operated 287 transfer stations in North America. It deposit wastes at these stations, as do other waste haulers. The Company has owned or operated 17 waste-to-energy facilities and five independent power production plants, or IPPs, which are located in the Northeast, in the Mid-Atlantic, and in Florida, California and Washington. The Company's recycling operations provide communities and industries with an alternative to traditional landfill disposal and support it to extract more value from the materials it

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