Description
Created
Mar 26, 2025 4:51 PM
URL
Circular Economy Involvement
Largest waste services company in the U.S. with significant recycling operations and landfill gas-to-energy projects.
Company Name
Waste Management
Cover Image
Industry/Subsector
EEnvironmental Services – Waste & Recycling
Investment Thesis
Steady, recession-resilient growth; strong cash flows; expanding recycling and renewable energy business.
Market CapitalizationMarket Capitalization
Multi-selectMarket Capitalization
Recent Financial Performance
$22.1B revenue (FY latest), $2.75B net income, 12% net margin, ROE ~34%.
Stock
Ticker
WM
- Industry/Subsector: Environmental Services – Waste & Recycling
- Market Capitalization: ~$92 billion
- Circular Economy Involvement: Waste Management is the largest waste services company in the U.S., known for trash collection and landfill operations. Crucially, it has also built a reputation in recycling – processing paper, plastic, glass, and metals – and landfill gas-to-energy projects, aligning its business with circular economy principles. WM handles millions of tons of recyclables annually and invests in recycling facilities and technologies to recover value from waste.
- Recent Financial Performance: In 2024, WM generated $22.1 billion in revenue (up 8% year-over-year) with $2.75 billion in net income. Net profit margin improved to 12%, and return on equity (ROE) is robust (~34% trailing). The company has a leveraged balance sheet (debt/equity ~2.8), but its cash flows are stable and interest coverage is healthy.
- Investment Thesis: Waste Management offers steady, recession-resilient growth and cash generation from essential services. Its expanding recycling and renewable energy initiatives provide additional revenue streams and align with sustainability trends. The company’s consistent earnings (often exceeding expectations) support a reliable dividend and share buybacks. As municipalities and businesses strive for zero-waste goals, WM’s scale and infrastructure position it to turn sustainability into profit, making it a solid long-term holding for both financial and ESG-oriented investors.