Analysis for WM

📈 Growth & Financial Trajectory

Waste Management has a steady 8-quarter trajectory. Revenue climbs from about $5.16B in 2024 Q1 to $6.23B in 2026 Q1, roughly +21%. Net income attributable to parent moves from about $708M to $723M over the period, with a mid-2025 dip before resuming strength. This path signals scale without a dramatic margin expansion, delivering durable cash flow rather than outsized earnings leaps.

This progression suggests resilient top-line growth with earnings largely sustaining through quarterly fluctuations, aided by stable demand and cost discipline.

💰 Margins & Cash Flow

• Gross Margin around 40-41% and Operating Margin around 17-18% across the period, indicating durable profitability.
• Operating cash flow remains robust, about $1.5B per quarter on average, with investing cash flows typically negative around -$0.7B to -$1.0B as capex and acquisitions weigh on free cash generation.

🛡️ Balance Sheet & Liquidity

• Total assets near $45B, liabilities near $35.7B, and equity around $10.0B.
• Current assets vs current liabilities yields a near 0.93x current ratio, signaling adequate liquidity but limited short-term cushion. Leverage remains elevated due to substantial long-term debt, yet cash flows support serviceability.

⚠️ Key Drivers & Risks

• Drivers: steady waste-collection volumes, regulated pricing, municipal demand.
• Risks: high leverage and cyclic exposure; valuation sensitivity to interest rates and capex cycles.