Waste ManagementWBO:WM +0.72%89 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates WBO:WM with a GF Score™ of 89/100 and a GF Value™ of €215.06 (Fairly Valued). The stock has 4 warning signs investors should review. Among 225 Waste Management companies, Waste Management ranks better than 99.56% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Waste Management's annualized net income for the quarter that ended in Mar. 2026 was €2,502 Mil. Waste Management's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €-6,520 Mil. Therefore, Waste Management's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Waste Management's Return-on-Tangible-Equity or its related term are showing as below:
WBO:WM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
WBO:WM's Return-on-Tangible-Equity is ranked better than 99.56% of 225
companies
in the Waste Management industry
Industry Median: 9.1
vs WBO:WM: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Waste Management Return-on-Tangible-Equity Related Terms
Waste Management Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Waste Management's Return-on-Tangible-Equity 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.
WBO:WM vs RSG, WCN, CLH: Return-on-Tangible-Equity Comparison
For the Waste Management subindustry, Waste Management's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Waste Management Industry
For the Waste Management industry and Industrials sector, Waste Management's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Waste Management's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Waste Management (WBO:WM) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Waste Management and its competitors. According to the industry distribution chart, Waste Management ranks #1 out of 225 companies in the Waste Management industry, placing it in the top 0.40000000000001%.
Is Waste Management's Return-on-Tangible-Equity too high?
Waste Management's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Waste Management ranks #1 out of 225 companies in the Waste Management industry, which is in the top quartile — a strong position relative to peers. Overall, Waste Management has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Waste Management's Return-on-Tangible-Equity compare to RSG and WCN?
According to the Waste Management industry distribution chart, Waste Management ranks #1 out of 225 companies for Return-on-Tangible-Equity. This places Waste Management in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.10. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Waste Management company?
The median Return-on-Tangible-Equity among Waste Management companies is 9.10, based on 225 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Waste Management and its competitors. For the Waste Management industry, the median Return-on-Tangible-Equity is 9.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waste Management's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 €215.06, compared to a current price of €196.30 — trading 8.7% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Waste Management's overall GF Score™ is 89/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Waste Management (WBO:WM), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 €196.30 is trading 8.7% below its estimated GF Value™ of €215.06.
GuruFocus considers Waste Management to be Fairly Valued.
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.
89GF Score
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