Morningstar Rating

Stock Research and Analysis

by Barbara Noverini

Bulls Say

Operating leverage could lead to higher operating margins for Waste Management as improving volumes flow through a more streamlined fixed cost base.
Given a healthy dividend yield of nearly 4% to our fair value estimate, patient investors who get paid to wait will benefit as pricing and volumes in the company's core business improve through strategic execution.
Waste Management's ability to generate cash has given the company ample opportunity to reinvest capital toward solutions that can address the entire waste stream. Read more 

Bears Say

Economic conditions continue to place pressure on customers, possibly creating a price ceiling that even Waste Management cannot surpass despite pricing programs.
Volumes continue to lag, causing concern that competitors could be gaining market share.
As a higher-margin business, waste brokerage for national accounts may face the same level of intense competition plaguing the other areas of the business. Should the Oakleaf acquisition fail to generate material volume improvement, it could end up being a distracting investment. Read more 

Management

CEO and president David Steiner has been with Waste Management since 2003, having progressed to his current role from his initial position as EVP/CFO. Steiner’s rhetoric has always included a staunch commitment to pricing, and management bonuses have   Read more 

Profile

Waste Management is the largest integrated waste services provider in the U.S., operating 269 active landfills and 297 transfer stations. The company's Wheelabrator segment   Read more 

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