Waste Management, Inc. (WM) — Free Cash Flow Yield
Industrials
Waste Management, Inc., through its subsidiaries, provides environmental solutions to residential, commercial, industrial, and municipal customers in the United States, Canada, Western Europe, and internationally. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, recovery facility, or disposal site; owns and operates transfer stations; and owns, develops, and operates landfill gas-to-energy facilities that produce renewable electricity and renewable natural gas. It also operates materials processing and commodities recycling services, including cardboard, paper, glass, metals, plastics, construction and demolition materials, and other recycling commodities are recovered for resale or redirected for other purposes; markets and resells recycling commodities; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company collects recyclable food and yard waste, as well as markets and sells mulch, compost, soil amendments, and renewable energy; offers remediation and construction, and industrial waste services; and manages and markets fly ash. Further, it provides Regulated Waste and Compliance Services (RWCS), which offers compliance programs, as well as collection, processing, and disposal of regulated and specialized waste, including medical, pharmaceutical, and hazardous waste; and Secure Information Destruction (SID) services that include the collection of personal and confidential information for secure destruction and recycling of sorted office paper. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was founded in 1968 and is based in Houston, Texas.
| Metric | Value |
|---|---|
| FCF Yield | 3.1% |
| Industrials Sector Avg FCF Yield | 3.8% |
| Annual Free Cash Flow | $2.8B |
| Market Cap | $89.8B |
| P/E Ratio | 59.3x |
Waste Management, Inc.'s FCF yield of 3.1% is below the Industrials sector average (3.8%).
Frequently Asked Questions
What is Waste Management, Inc.'s (WM) free cash flow yield?
Waste Management, Inc.'s (WM) free cash flow yield is 3.1%. That is below the Industrials sector average (3.8%).
Is WM's free cash flow yield good?
At 3.1%, WM's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does Waste Management, Inc. generate?
Waste Management, Inc. generated $2.8B in free cash flow, against a market cap of $89.8B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →