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Waste Management Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Waste Management has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Waste Management's Piotroski F-Score or its related term are showing as below:

WM' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 7

During the past 13 years, the highest Piotroski F-Score of Waste Management was 9. The lowest was 1. And the median was 6.


Waste Management Piotroski F-Score Historical Data

The historical data trend for Waste Management's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Waste Management Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 6.00 6.00 6.00 7.00

Waste Management Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 7.00 7.00 7.00

Competitive Comparison

For the Waste Management subindustry, Waste Management's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Waste Management Piotroski F-Score Distribution

For the Waste Management industry and Industrials sector, Waste Management's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Waste Management's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 538 + 506 + 513 + 587 = $2,144 Mil.
Cash Flow from Operations was 1184 + 991 + 1258 + 1047 = $4,480 Mil.
Revenue was 4665 + 4678 + 4661 + 5027 = $19,031 Mil.
Gross Profit was 1759 + 1723 + 1758 + 1885 = $7,125 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(29037 + 28841 + 29097 + 29219 + 30128) / 5 = $29264.4 Mil.
Total Assets at the begining of this year (Jun21) was $29,037 Mil.
Long-Term Debt & Capital Lease Obligation was $14,046 Mil.
Total Current Assets was $3,987 Mil.
Total Current Liabilities was $3,722 Mil.
Net Income was 390 + 438 + 421 + 351 = $1,600 Mil.

Revenue was 3861 + 4067 + 4112 + 4476 = $16,516 Mil.
Gross Profit was 1529 + 1567 + 1598 + 1740 = $6,434 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(26619 + 24772 + 29345 + 29070 + 29037) / 5 = $27768.6 Mil.
Total Assets at the begining of last year (Jun20) was $26,619 Mil.
Long-Term Debt & Capital Lease Obligation was $12,883 Mil.
Total Current Assets was $3,226 Mil.
Total Current Liabilities was $3,683 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Waste Management's current Net Income (TTM) was 2,144. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Waste Management's current Cash Flow from Operations (TTM) was 4,480. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=2144/29037
=0.07383683

ROA (Last Year)=Net Income/Total Assets (Jun20)
=1600/26619
=0.06010744

Waste Management's return on assets of this year was 0.07383683. Waste Management's return on assets of last year was 0.06010744. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Waste Management's current Net Income (TTM) was 2,144. Waste Management's current Cash Flow from Operations (TTM) was 4,480. ==> 4,480 > 2,144 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=14046/29264.4
=0.47996884

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=12883/27768.6
=0.46394129

Waste Management's gearing of this year was 0.47996884. Waste Management's gearing of last year was 0.46394129. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=3987/3722
=1.07119828

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=3226/3683
=0.87591637

Waste Management's current ratio of this year was 1.07119828. Waste Management's current ratio of last year was 0.87591637. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Waste Management's number of shares in issue this year was 416.4. Waste Management's number of shares in issue last year was 423.6. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=7125/19031
=0.37438915

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=6434/16516
=0.38956164

Waste Management's gross margin of this year was 0.37438915. Waste Management's gross margin of last year was 0.38956164. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=19031/29037
=0.65540517

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=16516/26619
=0.62045907

Waste Management's asset turnover of this year was 0.65540517. Waste Management's asset turnover of last year was 0.62045907. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+0+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Waste Management has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Waste Management  (NYSE:WM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Waste Management Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Waste Management's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Waste Management Business Description

Waste Management logo
Address
800 Capitol Street, Suite 3000, Houston, TX, USA, 77002
Waste Management ranks as the largest integrated provider of traditional solid waste services in the United States, operating approximately 268 active landfills and about 350 transfer stations (includes acquired Advanced Disposal landfills and transfer stations). The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.
Executives
Carrasco Rafael officer: SVP Operations 800 CAPITOL STREET 3000 HOUSTON TX 77002
Sylvester Maryrose director C/O 3700 WEST JUNEAU AVENUE MILWAUKEE WI 53208
Menke Sean E director C/O IHS INC. 15 INVERNESS WAY EAST ENGLEWOOD CO 80112
Plummer William B director C/O UNITED RENTALS INC / DE 100 FIRST STAMFORD PL STE 700 STAMFORD CT 06902
Watson Michael J. officer: Sr. VP-Chief Customer Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Batchelor Steve officer: Sr. Vice President Operations 800 CAPITOL STREET 3000 HOUSTON TX 77002
Oates-forney Tamla officer: Sr VP and Chief HR Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Hmmer Tara J. officer: SVP Operat Safety Envir Compl 800 CAPITOL STREET 3000 HOUSTON X1 77002
Nagy Leslie K officer: VP & Chief Accounting Officer 5 GREENWAY PLAZA, SUITE 100 HOUSTON TX 77046
Sjoqvist Nikolaj H officer: SVP, Chief Digital Officer 800 CAPITOL STREET 3000 HOUSTON X1 77002
Boettcher Charles C officer: Sr VP Chief Legal Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Shade Darren K officer: VP & Chief Accounting Officer 1001 FANNIN HOUSTON TX 77002
Mazzarella Kathleen M director C/O GRAYBAR ELECTRIC CO., INC 34 N. MERAMEC AVENUE CLAYTON MO 63105
Gluski Andres director 4300 WILSON BOULEVARD ARLINGTON VA 22203
Holt Victoria M director PPG INDUSTRIES, INC. ONE PPG PLACE PITTSBURGH PA 15272

Waste Management Headlines

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