WMI Stock Report
2-Year Price History
Recent Price
(7/2 4:15PM)
-2.2%
$27.40
52-Week Price
$22.10 - $36.73
Market Capitalization
$13.5 Billion
Most Recent Dividend
$1.08
Ockham's Rating
Rating specific information requires Premium Access.
Buy Now or
Take the Tour.
WMI 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 WMI 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 1.42x and 1.04x respectively.
Utilizing this range we can see that WMI’s current Price to Sales per share ratio of 0.99x is significantly below its average levels historically. In fact, with a current price of $27.40, WMI is a full 20% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for WMI.
WMI Cash Earnings
As the old saying goes, "Cash is King!" However, we prefer to capture a few other items within our analysis to identify "cash earnings". Nevertheless, an analysis of Cash Earnings is absolutely pivotal to assessing a company's value, and currently WMI is below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for WMI to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 7.98 and a 5.79 low over the same period.
At its current price of $27.40, the Price to Cash Earnings ratio of 6.00 per share for WMI 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 WMI must continue on its generation to improve our overall outlook for the stock.
WMI 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 WMI against the historic high and low levels over an available data range. Because WMI has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In WMI’s case, the estimated annual dividend is $1.16 producing a current dividend yield of 4.23%. The highest dividend yield from WMI in recent history was 5.25% while the lowest dividend yield was 0.00%. It's hard not to notice that WMI pays a current dividend yield that is 61.14% above the historical median. This peaks our interest since our analysis is looks favorably upon dividend yields that are greater than the historical median.
The latest TV Media Discussion
“…Gardening and lawn care up 20% year over year. We like state street, bb&t. Banks that raised money that didn't need to. And wmi, WASTE MANAGEMENT, an accidental high yielder that you have to own before the must own date, may 27th. …” …more details…
“…I feel comfortable for you if you missed that wave because the it's a 4.2% yielder. You've got to buy it by the must own date of may 27th to get that great yield. And it's wmi. WASTE MANAGEMENT. I think it's a keeper. >> announcer: next -- try to keep up with cramer as he takes your calls rapid-fire in an all new "lightning round." …” …more details…
“…Deal not long ago because it cost too much. That was so smart. It would have hurt shareholders. He's our kind of guy. Actually cares about how his WASTE MANAGEMENT is raising it's in a great position to make some inexpensive acquisition. And best of all, it's got an accidentally high yield of 4.2%. Plus as long as you buy the trading on wednesday, may 27th, …” …more details…
“…250 million acquiring medical waste companies over the next I like this. Now is a great time to be a since even after we've moved up significantly from the bottom in early march stock prices are still very far off their old and WASTE MANAGEMENT can probably get away with paying much less for these acquisitions than it would have had to a year or two ago. We know david steiner, the company's very pro-shareholder ceo, walked away from a larger …” …more details…
“…Their dividends tend to be olivier in "marathon man" like. Sow don't need to break out the moef cain or clover oil to brace yourself for dividend cuts. WASTE MANAGEMENT's no different. Its annual payout of $1.16 should eat up about 53% of WASTE MANAGEMENT's estimated $2.19 earnings per share for 2010. Hey, that's tons of protection. The dividend should take up less than half the earnings but WASTE MANAGEMENT comes pretty close and should generate more than enough free cash flow to pay the dividend 2.3 times over in 2009. So we're feeling real you know why we like WASTE MANAGEMENT's dividend. But how about the business? How's that going? WASTE MANAGEMENT's doing pretty well even in a recession. Trash. But prices are up 2.6% across the company, and total collection is up 4%, even though the volumes have decreased by …” …more details…
“…Stock and still collect the you must own it by this date. And the must own date happens to be the date before the ex date, which the company will announce when it declares its dividend. Now, we know that WASTE MANAGEMENT's ex date is may that's a week from thursday. So the must own date is may 27th. I need you in ahead of that to get the dividend. Now, one of the best things …” …more details…
“…Long-term u.S. Treasuries before taxes and considerably more after you give the irs its due as the tax rate on dividends is just 15%. Speaking of WASTE MANAGEMENT's dividend, the next quarterly payout is coming up in a month on ajune 19th. That's a 29-cent a share dividend right in your pocket as long as you own the pocket at the right time. …” …more details…
“…Shrinks as the share price increases and the yield rises as the share price falls. When a stock with a so-so dividend falls far enough that the yield crosses above 4%, and right now WASTE MANAGEMENT yields 4.2%, in our book it becomes an xanltly high yielder. It's accidental because WASTE MANAGEMENT didn't get such a high yield by raising its dividend endlessly. Those are intentionally high yielders. Rather, its yield grew large because the stock fell. At its 52-week high WASTE MANAGEMENT only yielded, well, a little bit less than 3%. Not puny but not big enough to recommend. Now, though, we have a chance to buy a company with genuine double-digit long-term earnings …” …more details…
“…We're believers in began. After last week's sell-off, though, we got some great accidental high yielders worth noticing, and they are not to be take WASTE MANAGEMENT. Wmi. The largest trash collection and disposal company in america. Which is up 10.3% since I last recommended it at $25.25 on march 18th. …” …more details…
“…Are you ready, skee-daddy in I want to start with lynn in >> caller: hi, cramer. You're so fun to watch. Tell me about WASTE MANAGEMENT. >> boy, you didn't waste any -- that's no small talk. You went right to the objective. And i'll tell you, you won my heart. Ba-boom ba-boom. WASTE MANAGEMENT yields more than 4%, which frankly is david steiner is a great ceo. He's working, making money hand over fist. I want to buy right here. Wmi. Formerly wmx during the heyday in the '80s. How about scott in iowa? Scott. Scottie. >> caller: yeah, jim. …” …more details…
“…If you excluded the charge, however, the maker of camel cigarettes beat estimates. Reynolds american shares today gained 2%. >>> WASTE MANAGEMENT, nation's largest crash collector, reported a 36% drop in first quarter net income to $155 million because of a slowdown in its recycling business. Better than what wall street was …” …more details…
“…When you talk about beating up, as you know, y you have to have leverage, so, if somebody's out there selling you you know, sneakers, you've got a lot of suppliers, t-shirts, a lot of when it comes to WASTE MANAGEMENT, only a couple of people can do it. >> brian: and intel. Intel an interesting name because we know semiconductors and processors aren't going the problem is sales are slowing …” …more details…
“…Kind of thing that corporations when they're faced with tougher times look to cut back on service and say, how can we beat our service providers down on price and margin? Is that going to impact WASTE MANAGEMENT? >> well, if you look at both waste and republic, they both managed to move through price increases, over the past year and again, the most recent quarter, volumes n are down, but …” …more details…
“…Garbage. >> and we produce it and need to pay to haul it away and not going to be fancy technology to come in and obviate the need to have waste removal. If you look at WASTE MANAGEMENT, republic services group, these companies haven't performed as well this year, providing an in and add to our positions, nice cash flows, nice dividend yields, I don't think that …” …more details…
“…Con ed, when it went to 34, I rerere rerecommended it. Hcp, it doesn't do that well. We have health care, utility, a WASTE MANAGEMENT company, a phone company and a tanker, all which have great yields. I would say alleluia! That man knows how to play. …” …more details…
“…If you want to own a tanker company, it's that one. At&t, randall stevenson always fantastic yield. WASTE MANAGEMENT, mr. Steiner, is there a better ceo in terms of the shareholder? Great dividend. The company is making a very, very big turn. He came on this show and told us very good stocks. …” …more details…
“…>> caller: here are my five. T, ed, nat, wmi. My last stock is hcp. Aim …” …more details…
“…Is a necessity, not a-- not a consumer discretionary item. >> dagen: well, ralph you've >> and lastly the firm has been-- >> you've owned 0 those stocks for a while now and just looking at the performance in WASTE MANAGEMENT this year is down about 20, 21%. Looking at the portfolio, you've outperformed. >> but it held up, it it did quite well in '08. >> dagen: right, and is that-- my question was what helped your …” …more details…
“…Growth stock, but at six times ebitda, we think it's a very steady business here in a rough economic environment. Additionally, we like trash. We own WASTE MANAGEMENT, which held up very well in '08 and then has had a pretty harsh correction here in '09. Again, it's about six times ebitda, which has rising cash …” …more details…
“…The maintaining the capital discipline, maintaining a strong balance sheet we think is more important than sharing buybacks. So when we got out of the market in midyear last year with the republic deal, we have yet to get back in. >> excellent. Thank you david steiner, ceo of WASTE MANAGEMENT. >> caller: thank you, jim. >> okay, I run a charitable I was looking for more juice, more economics' sensitivity, all day, because the staples are and I said you know what, I have …” …more details…
“…A good yield. 4.6%, it seems, solid, secure. But I don't know anymore. I am asking everybody about I want to worry. Every day you've got to start I worry and worry each day. Talk to WASTE MANAGEMENT ceo david steiner and see how things are going. Mr. Steiner, welcome back to "mad money." >> caller: hey, jim, thanks for having me again. All right, david, these volume declines, I don't know if the -- when I used to trade browning -- a WASTE MANAGEMENT, they always told me no such thing as volume declines in waste. That they would always go up year after year. How bad is it out there? >> caller: you know, jim, obviously, we've got affected by when you take a look at our …” …more details…
“…Poorer I guess they buy fewer thing and ultimately produce at same time the company increased pricing by 2.8% in less know that the 3.3% increase in 2007. Not a great sign. Given that the WASTE MANAGEMENT is facing less competition, it's the biggest dog in the junkyard. Began a restructuring program to consolidate its field operations, real-line corporate staff, and eliminate certain pay …” …more details…
“…Does tony sparano feel the same pain that we are feeling? The largest disposal company in you think that a company like this would be immune to the vistatudes of the economy. That's not what we're seeing. I've liked WASTE MANAGEMENT as a secular growth story for a long time, but company's been hit with lower volumes and a deceleration in pricing. …” …more details…
“…Cramer gives you his take on houts.E.C. Chair can fix the financial fiasco. >>> plus, trash or treasure? Cramer goes head-to-head with WASTE MANAGEMENT ceo david steiner to find out if his stock is ready to pick up. >>> and later, the wizard of wall street kicks it into high gear to give your stocks their …” …more details…
“…Favorite lion from the eagles. Jack and del rio who I think are hit me. Getting some advice from kris cox. My pick is wmi. It's been sold off real bad the last couple of weeks. >> let's buy some wmi. Is a great man. He's returned a lot of capital shareholders. Let me just double check. I think that yield is close 5%. The man has comour show …” …more details…
“…Can gas fi waste coal but we can gas ifiy it, too. I'm not being critical of refiner, but they can't do that. >> john rich, the president of WASTE MANAGEMENT processing, one of the benefit ris of the alternative energy push in the obama stimulus package. Up next, we have energy news. …” …more details…
“…>> i'm like being that. What's up. >> caller: i've been hiding in garbage, but it's getting they missed the quarter. >> why don't I send you over to waste, wmi. Mine has a 5% yield that just downgraded the other day by a prominent analyst. We had stein or the show. 5% yield with the company that has pretty consistent earnings. …” …more details…
“…The analyst says the studio could get a big revenue boost from its first 3d film "monsters versus aliens." WASTE MANAGEMENT cutting its price target from $27 to $34 because declines from commercial and industrial customers may back with more of the "closing bell" up next. Hocolate chips [ laughs ]what's technology'srole here? …” …more details…
“…Up and show you some of the banks to be watching. WASTE MANAGEMENT is using the resources...At our disposal to create enough green energy... To power over one million homes. From everyday collection to environmental protection, think green. Think WASTE MANAGEMENT. …” …more details…
“…We're just kind of wandering around here. It's options expiration week, bit. Don't go away. WASTE MANAGEMENT is using the resources...At our disposal to create to power from everyday collection to environmental protection, think green. …” …more details…
“…Owner, steve ross, is a great I like him a lot, and I think our fans will appreciate his enthusiasm about bringing a championship back home. >> hey, wayne, was WASTE MANAGEMENT union? When we were at WASTE MANAGEMENT, we had the privilege of dessert filing more unions than any company ever in the history, and as we acquired a lot of companies around the united states, they were union, …” …more details…
“…Hour, wayne -- founder of the h. Wayne h -- it's great to see you, wayne. >> i'm great, joe. >> i'm well, thank you. >> you grew WASTE MANAGEMENT. You grew blockbuster. And on and on and on. So many different companies that we can't go into them all. You may not be quite as active as you used to be, but you talk …” …more details…
“…This thing while we figure out the big thing which is the banks. >> that's tarp ii. We talk about that later. >> here's a look at what's still ahead today on "bulls and >> WASTE MANAGEMENT. We are drilling into the massive stimulus bill. Why some are outraged at what they are finding. Will this cost tax payers …” …more details…
“…As we have been promising you, the head of the president's new christina romer, first here on cnbc. WASTE MANAGEMENT is using the resources...At our disposal to create enough green energy... To power over one million homes. From everyday collection think green. …” …more details…
“…It sounds like we have got it ironically. Connell: alexis we do have some breaking news but it is not the coke earnings yet. WASTE MANAGEMENT earnings, the big trash hauling company, that appears to be a little bit ex items 49 cents per share. The expectation was for 48 cents per share. Wmi is the ticker on WASTE MANAGEMENT. The stock is not trading yet in the premarket, but it is down by% over that one-year time frame. While we wait for that coke number, let me give you the revlon figure I will look that …” …more details…