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 over 3% of 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

Operational challenges and a depressed pricing environment have persistently challenged recycling economics recently, calling into question the longer-term attractiveness of this business.
Volumes continue to lag, causing concern that competitors could be gaining market share.
Declines in U.S. drilling activity due to weakened oil prices may challenge the fast-growing energy-services side of Waste Management’s business. 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 252 active landfills, 298 transfer stations, and 126 materials recovery facilities.  Read more 

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