Waste Management Inc. (NYSE:WM) shares traded lower over the last trading session, losing -0.65% on 05/26/21. The shares fell to a low of $139.515 before closing at $139.77. Intraday shares traded counted 1.2 million, which was 36.0% higher than its 30-day average trading volume of 1.87M. WM’s previous close was $140.69 while the outstanding shares total 422.90M. The firm has a beta of 0.80, a 12-month trailing P/E ratio of 38.24, and a growth ratio of 2.95. The stock’s Relative Strength Index (RSI) is 54.66, with weekly volatility at 0.97% and ATR at 1.81. The WM stock’s 52-week price range has touched low of $100.45 and a $144.54 high.
Investors have identified the Waste Management company Waste Management Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $58.76 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Waste Management Inc. (WM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For WM, the company has in raw cash 476.0 million on their books with 244.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 3.33 billion total, with 3.29 billion as their total liabilities.
WM were able to record 850.0 million as free cash flow during the 07/28/2021 quarter of the year, this saw their quarterly net cash flow reduce by -42.0 million. In cash movements, the company had a total of 1.12 billion as operating cash flow.
Potential earnings growth for Waste Management Inc. (WM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/28/2021 quarter of the year, Waste Management Inc. recorded a total of 4.11 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 9.31% coming in sequential stages and their sales for the 07/28/2021 quarter increasing by 1.09%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.51 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.6 billion. This allows shareholders to hold on to 422.90M with the recently reported earning now reading 1.00 cents per share. This is a figure that compared to analyst’s prediction for their 07/28/2021 (1.06 cents a share).
Having a look at the company’s valuation, the company is expected to record 5.33 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on WM sounds very interesting.
Is the stock of WM attractive?
In related news, Pres, Chief Executive Officer, Fish James C Jr sold 1 shares of the company’s stock in a transaction that recorded on May 17. The sale was performed at an average price of 141.48, for a total value of 92. As the sale deal closes, the Sr. VP-Chief Customer Officer, Watson Michael J. now sold 4,430 shares of the company’s stock, valued at 622,635. Also, EVP, Corp Development & CLO, Boettcher Charles C sold 2,891 shares of the company’s stock in a deal that was recorded on Mar 29. The shares were price at an average price of 130.00 per share, with a total market value of 375,830. Following this completion of acquisition, the EVP, Corp Development & CLO, Boettcher Charles C now holds 2,891 shares of the company’s stock, valued at 361,375. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
7 out of 19 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on Waste Management Inc.. 1 analysts has assigned a Sell rating on the WM stock. The 12-month mean consensus price target for the company’s shares has been set at $144.93.