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what it is
It picks up trash, hauls it away, sorts it, and buries it across North America.
how it gets paid
Last year Waste Management made $25.2B in revenue. Collection was the main engine at $16.9B, or 67% of sales.
why it's growing
Revenue grew 14.2% last year. In the fourth quarter, the top line increased more than 7% vs. prior year, to $6.3 billion, supported mainly by collection and disposal core pricing.
what just happened
WM posted $6.3B in revenue and $1.93 EPS, but the report still landed as a miss in market speak.
At a glance
A balance sheet — strong enough to weather a downturn
95/100 earnings predictability — you can trust these numbers
29.8x trailing p/e — priced about right
1.9% dividend yield — cash in your pocket every quarter
12.0% return on capital — nothing to write home about
xvary composite: 79/100 — average
What they do
It picks up trash, hauls it away, sorts it, and buries it across North America.
WM owns 262 landfills and 339 transfer stations. That is the ugly infrastructure nobody can copy fast. If you live on its routes, your trash still has to move, and 95% of revenue comes from U.S. operations. Collection is 67% of sales, so the business is mostly daily pickup, not one-time deals.
How they make money
$25.2B
annual revenue · their business grew +14.2% last year
Collection
$16.9B
Landfill Fees
$4.0B
Recycling and Transfer
$4.3B
The products that matter
collects and disposes waste
Collection and Disposal
$25.2B revenue · disclosed economic core
this is the business the numbers are actually describing: $25.2B in annual revenue, 13.5% net margin, and the route density that makes the network work.
core engine
processes recyclable materials
Recycling Services
part of the $25.2B platform
recycling matters strategically, but this page does not break out standalone revenue. That is the honest answer. What you do know is it sits inside a business that grew 14.2% last year.
strategic add-on
integrated healthcare waste services
Healthcare Solutions
integration hit s&g&a at 20.8% of revenue
the segment matters because it is already showing up in the cost line. Integration pushed s&g&a to 20.8% of revenue, so the question is not whether it exists. The question is when it stops dragging on margins.
margin watch
Key numbers
$25.2B
Annual revenue
That is the size of the pile. It grew 14.2%, so the business is still adding more trash to the truck.
29.8x
Trailing P/E
You are paying 29.8 times last year's earnings for a business that grows like a utility and trades like a premium stock.
1.9%
Dividend yield
The payout is small today, but dividend growth ran 8.5% a year, so the income stream keeps inching up.
17.1%
Operating margin
WM keeps 17.1 cents from each revenue dollar after running the business.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 1 — safer than 95% of stocks
- price stability 100 / 100
- long-term debt $22.2B (20% of capital)
- net profit margin 13.6% — keeps 14 cents of every dollar in revenue
- return on equity 24% — $0.24 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in WM 3 years ago → it's now worth $15,550.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
WM posted $6.3B in revenue and $1.93 EPS, but the report still landed as a miss in market speak.
Fourth-quarter revenue rose more than 7% vs. prior year to $6.3B. Adjusted EPS rose 13.5% to $1.93, helped by better labor retention.
$6.3B
revenue
$1.93
eps
41.6%
gross margin
the number that mattered
The key number was $1.93 per share, because it still grew 13.5% from last year.
-
waste management ended 2025 on a strong note.
-
in the fourth quarter, the top line increased more than 7% vs. prior year, to $6.3 billion, supported mainly by collection and disposal (c&d) core pricing of 6.3% and a yield of 3.8% in the legacy business.
-
meanwhile, the adjusted bottom line advanced 13.5% from the year-ago period, to $1.93 per share, benefiting from disciplined pricing actions and a reduction in repair and maintenance expenses, driven by the replacement of an aging fleet and the addition of new trucks.
-
labor costs also improved due to better labor retention.
-
moreover, the healthcare solutions line integration resulted in sg&a expenses of 20.8% of revenue, down from the prior-year period.
source: company earnings report, 2026
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What could go wrong
the top threat is environmental compliance at landfills and disposal sites.
med
landfill permits and environmental compliance
WM's moat includes landfill access. That also makes regulation unavoidable. A compliance issue, remediation order, or permit problem hits the same physical assets that make the business valuable.
impact: the core waste network produced all $25.2B of reported revenue, so disruption here is not a side issue.
med
integration costs stay elevated
healthcare solutions integration already pushed s&g&a to 20.8% of revenue. If those costs linger, the market stops treating them as temporary and starts treating them as the new margin structure.
impact: the latest quarter ran at a 9.4% net margin versus 13.5% for the full year. That gap is the warning sign.
med
premium multiple, ordinary growth
29.8x trailing earnings is a generous price for a company the market loves because it is predictable. Predictable is good. Predictable and expensive means small disappointments matter more.
impact: when a stock already trades near its 52-week high of $233, multiple compression can do damage even if the business stays fine.
a compliance problem or a margin reset would pressure a business carrying $22.2B in long-term debt and valued at roughly $90B as if steadiness will keep winning.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next report on april 27, 2026
you want to see whether the latest quarter's 9.4% net margin moves back toward the 13.5% full-year level.
metric
s&g&a after the healthcare integration
20.8% of revenue is the disclosed pressure point. If that ratio stays sticky, the acquisition story gets less attractive.
trend
institutional buying that is positive, but not euphoric
999 buyers versus 900 sellers says support is there. It does not say the smart money is throwing chairs.
risk
landfill and environmental headlines
the moat and the regulatory burden live in the same assets. Permit, remediation, and compliance updates matter more than generic market noise.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts think WM is fine, not urgent.
risk profile
safest 5%
stability score 1 — lower risk than almost any stock on the board.
chart momentum
below average
technical score 4 — the business is steadier than the tape right now.
earnings predictability
95 / 100
few surprises. That's why the multiple stays elevated in the first place.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 999 buyers vs. 900 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$196
$315
$223
current price
$256
target midpoint · +15% from current · 3-5yr high: $325 (+45% · 11% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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