Waste ManagementWBO:WM -0.63%90 Interest Coverage is 4.85 as of Mar. 2026, which is 31% below its 10-year median of 7.08. GuruFocus rates WBO:WM with a GF Score™ of 90/100 and a GF Value™ of €217.25 (Fairly Valued). The stock has 4 warning signs investors should review. Among 163 Waste Management companies, Waste Management ranks worse than 56.44% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Waste Management's
Operating Income
for the
three
months ended in Mar. 2026 was €944 Mil. Waste Management's Interest Expense for the
three
months ended in Mar. 2026 was €-195 Mil.
Waste Management's interest coverage for the quarter that ended in Mar. 2026 was 4.85.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Waste Management's Interest Coverage or its related term are showing as below:
WBO:WM'
s Interest Coverage Range Over the Past 10 Years
Min: 5.05 Med: 7.08 Max: 9.07
Current: 5.16
WBO:WM's Interest Coverage is ranked worse than 56.44% of 163
companies
in the Waste Management industry
Industry Median: 5.87
vs WBO:WM: 5.16
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Waste Management Interest Coverage Related Terms
Waste Management Interest Coverage Historical Data
* Premium members only.
The historical data trend for Waste Management's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
WBO:WM vs RSG, WCN, CLH: Interest Coverage Comparison
For the Waste Management subindustry, Waste Management's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Waste Management Industry
For the Waste Management industry and Industrials sector, Waste Management's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Waste Management's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Waste Management (WBO:WM) has a Interest Coverage of 4.85 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Waste Management and its competitors. This is 31% below median its historical median of 7.08. Over the past decade, Waste Management's Interest Coverage has ranged from 5.05 to 9.07. According to the industry distribution chart, Waste Management ranks #92 out of 163 companies in the Waste Management industry, placing it in the top 56.4%.
Is Waste Management's Interest Coverage too high?
Waste Management's current Interest Coverage of 4.85 is 31% below median its 10-year median of 7.08. Over the past 10 years, this metric has ranged from a low of 5.05 to a high of 9.07. The Waste Management industry median Interest Coverage is 5.87. Waste Management's value of 4.85 is 17.4% below this industry median. Based on the distribution chart, Waste Management ranks #92 out of 163 companies in the Waste Management industry, which is below the industry midpoint. Overall, Waste Management has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Waste Management's Interest Coverage compare to RSG and WCN?
According to the Waste Management industry distribution chart, Waste Management ranks #92 out of 163 companies for Interest Coverage. This places Waste Management in the lower half of its industry. The industry median Interest Coverage is 5.87. Waste Management's value of 4.85 is 17.4% below this benchmark. Historically, Waste Management's own Interest Coverage has ranged from 5.05 to 9.07 over the past decade. While the company's 10-year median is 7.08 vs. the industry median of 5.87, Waste Management has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Waste Management company?
The median Interest Coverage among Waste Management companies is 5.87, based on 163 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Waste Management's current Interest Coverage of 4.85 is 17.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Waste Management and its competitors. For the Waste Management industry, the median Interest Coverage is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waste Management's current Interest Coverage is 4.85, which is 31% below median its own 10-year median of 7.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waste Management stock overvalued right now?
Based on GuruFocus' analysis, Waste Management (WBO:WM) is currently considered Fairly Valued. The stock's GF Value™ is €217.25, compared to a current price of €196.60 — trading 9.5% below its estimated fair value. The current Interest Coverage is 4.85, which is 31% below median its 10-year median of 7.08 and 17.4% below the Waste Management industry median of 5.87. Waste Management's overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Waste Management (WBO:WM), the current Interest Coverage is 4.85 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Waste Management (WBO:WM) Overvalued in 2026?
Based on GuruFocus' analysis, Waste Management stock appears to be undervalued.
The current stock price of €196.60 is trading 9.5% below its estimated GF Value™ of €217.25.
GuruFocus considers Waste Management to be Fairly Valued.
Key valuation signals for WBO:WM:
Interest Coverage: 4.85 (31% below median its 10-year median of 7.08)
GF Value™: €217.25 vs. price of €196.60 (9.5% below fair value)
Industry Position: 17.4% below the Waste Management median (#92 of 163)
No single metric tells the full story. See the WBO:WM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
WM, previously known as Waste Management, ranks as the largest integrated provider of traditional solid waste services in the United States, operating 257 active landfill sites and about 342 transfer stations that help with transporting waste efficiently and economically. The company serves residential, commercial, industrial, and medical end markets for waste collection, transfer, and disposal. The company also has an energy business emanating from the beneficial use of landfill gas and is a leading recycler in North America.
90GF Score
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