Waste management is one of the most well-known companies in the field of waste management, so it makes sense that the company is called “WM.”
WM is a top provider of waste management and environmental services like picking up and getting rid of trash, recycling, and renting dumpsters. The company not only picks up trash from commercial and residential properties, but it also rents out roll-off dumpsters.
Roll-off dumpers are big and are often used to clean up after big projects and renovations. WM has an advantage in the market because it has a big share of it. Nearly 30% of all the trash in US landfills is taken care of by them. This makes it one of the most important companies in the US that deals with waste.
The ESG rating of the industry leader in waste collection demonstrates how important sustainability and environmental protection are to it. WM got an 8.2 on its score for environmental risk, which helped it get a 17 on its ESG score.
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But the company got a low score (3.3) on governance, which made the overall score lower. Taking care of the environment in a sustainable way could help them do well in the future. In the future, government policies could help the sector, and companies that invest in sustainability could get the most out of it.
Another reason to be excited about this stock is that the company pays a dividend. WM’s dividend yield is 1.85%, and the company has raised this payout for over 19 years in a row. Overall, the stock of Waste Management has done very well.
Waste Management’s stock has been able to stay at the top of its long-term trend channel. Even though most stocks have lost a lot of value in the past few months, this kind of performance is surprising.
Even though the company did well overall over the past year, it didn’t meet expectations in the last three months of 2022. WM didn’t meet its forecast for earnings per share (EPS), but sales went up 26% year over year.
But investors didn’t seem to mind that the company didn’t meet expectations because the shares of the company barely moved after the earnings report. This is probably because investors are optimistic about the company’s future and its revenue has grown from the previous year.
Even though the company has a market cap of $62 billion and trades at a P/E ratio of 28x, which isn’t the cheapest valuation out there, investors are still very confident in it.