Waste Management Intrinsic Value Calculation – WASTE MANAGEMENT Reports Strong 2nd Quarter Financials for 2023 Fiscal Year
August 24, 2023
🌧️Earnings Overview
WASTE MANAGEMENT ($NYSE:WM) announced their financial results for the second quarter of fiscal year 2023 on June 30 2023. Total revenue for the period was USD 5119.0 million, a 1.8% increase from the same quarter in the previous year. Net income rose to USD 615.0 million, representing a 4.8% increase compared to the same quarter of the preceding year.
Price History
This marked the fourth consecutive quarter of growth and solidified WASTE MANAGEMENT’s status as one of the leading waste management companies in the world. This increase is an indication of the efficiency and cost-cutting measures that the company has implemented in the past few years. In addition to these impressive financials, WASTE MANAGEMENT also announced that it had acquired a new waste management facility in the Midwest. This acquisition is expected to increase the company’s market share in this region and further solidify its presence in the industry.
Overall, investors were pleased with WASTE MANAGEMENT’s financial performance for the second quarter. The company has demonstrated strong growth and appears to be well-positioned for future success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Waste Management. More…
| Total Revenues | Net Income | Net Margin |
| 20.02k | 2.29k | 11.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Waste Management. More…
| Operations | Investing | Financing |
| 4.3k | -3.3k | -1.73k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Waste Management. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 31.61k | 24.69k | 16.98 |
Key Ratios Snapshot
Some of the financial key ratios for Waste Management are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.9% | 10.8% | 17.1% |
| FCF Margin | ROE | ROA |
| 7.5% | 31.2% | 6.8% |
Analysis – Waste Management Intrinsic Value Calculation
At GoodWhale, we have conducted an extensive analysis of WASTE MANAGEMENT‘s fundamentals, and based on our proprietary Valuation Line, we have determined that the fair value of WASTE MANAGEMENT share is around $168.2. Currently, WASTE MANAGEMENT stock is trading at $171.8, which is a fair price but is slightly overvalued by 2.2%. We believe that investors should keep this in mind when making their decisions. More…
Peers
It has many competitors, including Republic Services Inc, Waste Connections Inc, and Macau Capital Investments Inc.
– Republic Services Inc ($NYSE:RSG)
Republic Services is an American trash and recycling company. It is the second largest provider of residential and commercial trash and recycling services in the United States. The company’s revenue for 2020 was $9.75 billion. The company’s ROE for 2020 was 13.97%.
– Waste Connections Inc ($NYSE:WCN)
Waste Connections Inc is a provider of waste management services in North America. The company has a market cap of 34.1B as of 2022 and a return on equity of 9.38%. Waste Connections Inc provides waste collection, transfer, disposal and recycling services to residential, commercial, industrial and governmental customers.
Summary
Net income was also up 4.8% year-over-year to $615 million, driven by growth in the core collection and disposal businesses, as well as recycling and waste-to-energy revenue. Management remained focused on their strategy of capital investments and acquisitions within their sectors, and the company’s outlook remains positive. Investors should take note of WM’s strong financial performance and their commitment to expanding their operations.
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