NYSE:WM
$34.10
(3/18 4:00PM)
+0.4%
| Open | $34.04 |
Mkt Cap | $16.6 Billion |
| High | $34.19 |
52Wk High | $35.00 |
| Low | $33.95 |
52Wk Low | $25.05 |
| Volume | 1.8 Million |
Avg Vol 10D | 1.9 Million |
Ockham's Rating/Recommendation Summary
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WM Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at WM through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.70x and 1.23x respectively.
Utilizing this range we can see that WM’s current Price to Sales per share ratio of 1.38x is below its historical average only slightly. So, while not a huge positive for our analysis, we do feel it is worth noting that WM does look a bit undervalued on a Price to Sales basis, all other factors being equal. However, if the Price to Sales ratio drops further, Ockham Research is likely to become more bullish on this stock.
WM Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of WM, Ockham views their current Cash Earnings as below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for WM, the current level of Cash Earnings compared to its historical levels helps identify where WM is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 9.38 and a historical low Cash Earnings per share ratio of 6.76, an investor can relate where value becomes optimal.
At its current price of $33.42, the Price to Cash Earnings ratio of 7.53 per share for WM is relatively attractive. At current profitability levels, a drop in share price would only improve our future expectations. Again, Cash Earnings is an incredibly valuable metric, and management at WM must continue on its generation to improve our overall outlook for the stock.
WM Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from WM against the historic high and low levels over an available data range. Because WM has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In WM’s case, the estimated annual dividend is $1.26 producing a current dividend yield of 3.77%. The highest dividend yield from WM in recent history was 5.25% while the lowest dividend yield was 0.00%. It's hard not to notice that WM pays a current dividend yield that is 43.62% above the historical median. This peaks our interest since our analysis looks favorably upon dividend yields that are greater than the historical median.
Analysts' Take on Waste Management, Incorporated Mentioned on Closing Bell
Wall Street analysts can have a huge affect on stocks, and today Closing Bell talked about an analysts' opinion in relation to WM.
Waste Management, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of WM, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… " nuclear services provider energy solutions selected to provide WASTE MANAGEMENT systems for new reactors being built in china. In terms of the deal were not disclosed. …”
Waste Management, Incorporated Was Talked About by Power Lunch
The latest news from Power Lunch on WM is available through Ockham's news analytics platform RazorWire.
Waste Management, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of WM, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… Why is there a WASTE MANAGEMENT, inc. If it's done best by the locale? > > may be circumstances where garbage is an example it can be done for certain towns where it's better ... …”
News on WM From the Pundits on Street Smart With Carol Massar and Matt Miller
The latest news on Street Smart With Carol Massar and Matt Miller in regards to WM came through on RazorWire recently.
Waste Management, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of WM, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… he owns WASTE MANAGEMENT. There are hedge funds that piggyback warren buffett. There is a hedge fund that manages about 4 billion. They own berkshire hathaway and republic. …”
Holding WM Stock? See What Is Being Discussed on Street Smart With Carol Massar and Matt Miller
As always, the latest news on WM is available to Ockham clients through RazorWire, and it was mentioned recently on Street Smart With Carol Massar and Matt Miller.
The Ockham valuation currently has a Fairly Valued stance on WM because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. In comparison to the other stocks that we follow, Waste Management, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… "new york post, call -- ," de will invest in WASTE MANAGEMENT. Gates currently has a 14. 7% stake. Warren buffett has doubled his holdings to 8 million shares. …”
News Breaking on Waste Management, Incorporated on Street Signs
As always, the latest news on WM is available to Ockham clients through RazorWire, and it was mentioned recently on Street Signs.
Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; WM has received less coverage from the financial media in business television and blogs. Waste Management, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… Bow warren buffett and bill gates are the largest services the second biggest WASTE MANAGEMENT firm in the world. > > so, what is the theme here? …”
Waste Management, Incorporated Talked About Near M&A Discussion on Closing Bell
RazorWire captured a discussion on Closing Bell that contained talk of M&A activity and WM was mentioned as well.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WM has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Waste Management, Incorporated will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on WM.
“… acquisition of schering plow. WASTE MANAGEMENT made $315 million, beating wall street estimates. The nation's largest trash …”
Bullish/Bearish: Sentiment and WM Discussed on Countdown to the Closing Bell
It is always benefitial to understand the market's sentiment for a particular stock, and Countdown to the Closing Bell talked about some aspects of sentiment for WM recently.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Waste Management, Incorporated has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on WM because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… Great sqoeshdful we're having the good fund men tals out of barclays and WASTE MANAGEMENT and all the other companies reporting in earning. Terrific and wonderful. …”
Stay Current on WM's News on Fox Business
As always, the latest news on WM is available to Ockham clients through RazorWire, and it was mentioned recently on Fox Business.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WM has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on WM. The Motley Fool CAPS data suggests that investors believe Waste Management, Incorporated will beat the market in the foreseeable future.
“… We've been getting terrific earnings coming out of outfits like WASTE MANAGEMENT and barclays, you can go on and on and on, it seems about 75% of the companies reporting are ... …”
Fox Business Brings News Related to Waste Management, Incorporated
The latest news on Fox Business in regards to WM came through on RazorWire recently.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WM has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Waste Management, Incorporated will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on WM.
“… You borrowed a little cash from grandma, but this is a tough business, WASTE MANAGEMENT, sidney. > > absolutely. Liz: you were in your 20s at the time when you started this, ... …”
Cost Structure at Waste Management, Incorporated Discussed on Squawk On The Street
The best run companies in the world always have their costs in check. Recently, WM was mentioned in regards to costs on Squawk On The Street.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WM has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on WM. The Motley Fool CAPS data suggests that investors believe Waste Management, Incorporated will beat the market in the foreseeable future.
“… Glovebox app free at geico.Com. >>> WASTE MANAGEMENT is up. Cost cutting to 12 cent a share …”