Profitability Analysis To Overcome Risk: Waste Management, Inc. (NYSE:WM)

Waste Management, Inc. (NYSE:WM) under comprehensive financial analysis presented as an active mover. Shares slightly up 0.59% to trade at $73.54 in recent trading session. The firm has floated short ration of 1.20%, hold to candle to sentiment indicator of Short Ratio, which was 3.48.

Limelight under Ratio Analysis

Waste Management, Inc. (NYSE:WM) has noticeable price to earnings growth ratio of 2.67, which find it more attractive on the other stock that has lower PEG and vice versa. The firm price to earnings ratio calculated as 27.76. The co stands at price to sale ratio of 2.38 that signifies the value placed on each dollar of a firm’s sales or incomes; it is most relevant ratio to compare companies in similar sector. It has price to book ratio of 6.12, which gauges the market price of a share over its book value.

Analysts Rating

Finally, analysts shed their light over the WM price targets; maintaining price high target of 81 while at average the price target was 73.27 in contrast with the current price of 73.54. The price targets are usually acts as the boosters or blasters in the performance of stock. A higher price target would definitely provide confidence to investors during the trading action, consideration given by Wall Street Journal.

So does the rankings given by analysts; let us highlight rankings table and we had 6 analysts recommending BUY ratings for current month and for previous month 7 stands on similar situation; while 7 for the current month as compared to 6 analysts recommending for HOLD from the pool for previous month. While 2 out of pool consider it as Sell for current month. For the overall, consensus ratings were for Overweight.

Profitability Analysis

Waste Management, Inc. (NYSE:WM) need to consider for profitability analysis, the firm has profit margin of positive 8.70% to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin calculated as 45.60% and 16.80% respectively. WM has returns on investment of 11.30%. The returns on assets were 5.70% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 22.40%, which is measuring profitability by disclosing how much profit generates by WM with the shareholders’ money.

The firm attains analyst recommendation of 2.30 on scale of 1-5. The co has price volatility of 0.98% for a week and 0.98% for a month. Narrow down focus to firm performance, its weekly performance was 0.74% and monthly performance was 3.68%. The stock price of WM is moving up from its 20 days moving average with 1.28% and isolated positively from 50 days moving average with 3.96%.

Waste Management, Inc. (NYSE:WM) current ratio calculated as 0.90, this value is acceptable if it lies in 1.3% to 3%. But it varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 0.80, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 1.76, sometimes it remain same with long term debt to equity ratio.


About Gerard Bergeron

Gerard Bergeron covers Bio-pharmacy or healthcare sector Press Releases news updates. He has extensive three year of experience in content writing as freelance writer. He performs analysis of Healthcare Companies and provides worthy information for investor community. He is an experienced writer with a precise grasp of the English language and a clear, compelling writing style.

Leave a Reply

Your email address will not be published. Required fields are marked *