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Waste Services Expertise Aids WM Amid High Debt & Low Liquidity
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Key Takeaways
WM benefits from strong infrastructure, asset network and essential services, driving steady growth.
WM's Stericycle acquisition and tech investments boosted income and expanded medical waste exposure.
WM faces high debt, weak liquidity and modest growth, limiting appeal for risk-seeking investors.
WM (WM - Free Report) is benefiting from its robust infrastructure and extensive asset network in the waste removal services industry. A stable industry that provides essential services is driving WM’s sustainable growth. Recent acquisitions and long-term shareholder-friendly policies are added advantages.
Meanwhile, the company’s high debt strains liquidity, while its modest growth limits appeal to growth-oriented investors.
How is WM Faring?
WM’s top-line growth is largely driven by its strong infrastructure and extensive asset network, comprising landfills, recycling facilities and waste-to-energy plants. The company provides collection, transfer, recycling, resource recovery and disposal services to residential, commercial, industrial and municipal customers. Its focus on sustainability initiatives, like converting landfill gas into renewable energy, aligns with global Environmental, Social and Governance trends, further boosting its revenue growth.
The essential nature of waste management services helps the company to gain steady returns with low volatility. Its focus on pricing and cost control further enables it to maintain healthy profit margins, making the company’s stock appealing to long-term investors and those seeking safety during market fluctuations.
WM also drives stable revenues and incremental growth through acquisitions and technology investments. The acquisition of Stericycle complements WM’s business platform in the robust and dynamically growing medical waste sector. The acquisition also helped the company to achieve a $245 million increase in income from operations in 2025.
WM has been consistent in rewarding its shareholders through dividend payments and generating shareholder value. It paid dividends of $1.1 billion, $1.1 billion, $1.2 billion and $1.3 billion in 2022, 2023, 2024 and 2025, respectively. This shows the company’s dedication to maintaining a positive impression of its stock in the market.
Meanwhile, the company operates in a stable industry with consistent demand, leading to steady but modest stock price movements. Consequently, momentum-seeking investors, willing to take high risks, will avoid the stock due to the low momentum. Currently, it has a Momentum Score of F.
The company has accumulated significant debt, attributed to past acquisitions and ongoing investments in renewable energy. As of Dec. 31, 2025, the company had current debt of $711 million and long-term debt of around $22.2 billion compared with cash and equivalents of $201 million. These acquisitions and investments have increased operational costs and affected the company’s capacity to pursue other opportunities, despite assisting in the company’s growth.
The company also faces a significant liquidity concern. At the end of the fourth quarter of 2025, the company reported a current ratio of 0.89, lower than the industry's average of 1. A current ratio below 1 often suggests that the company may not be well-positioned to meet its short-term obligations.
Recently, WM reported dismal fourth-quarter 2025 results. It earned an adjusted profit of $1.93 per share, which missed the Zacks Consensus Estimate by 1% but increased 13.5% from the year-ago quarter. Revenues of $6.3 billion came 1.2% short of the consensus estimate but rose 7.1% year over year.
FTI Consulting, Inc. (FCN - Free Report) reported impressive results for the fourth quarter of 2025.
FCN’s adjusted earnings per share of $1.78 beat the consensus mark by 39 cents and increased 14.1% from the year-ago quarter. FTI Consulting’s revenues of $990.7 million beat the Zacks Consensus Estimate of $911.4 million and rose 10.7% from the year-ago quarter.
IT’s adjusted earnings were $3.94 per share, which beat the Zacks Consensus Estimate by 12.6%. The metric decreased 27.7% from the year-ago quarter. Gartner’s total revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% on a year-over-year basis.
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Waste Services Expertise Aids WM Amid High Debt & Low Liquidity
Key Takeaways
WM (WM - Free Report) is benefiting from its robust infrastructure and extensive asset network in the waste removal services industry. A stable industry that provides essential services is driving WM’s sustainable growth. Recent acquisitions and long-term shareholder-friendly policies are added advantages.
Meanwhile, the company’s high debt strains liquidity, while its modest growth limits appeal to growth-oriented investors.
How is WM Faring?
WM’s top-line growth is largely driven by its strong infrastructure and extensive asset network, comprising landfills, recycling facilities and waste-to-energy plants. The company provides collection, transfer, recycling, resource recovery and disposal services to residential, commercial, industrial and municipal customers. Its focus on sustainability initiatives, like converting landfill gas into renewable energy, aligns with global Environmental, Social and Governance trends, further boosting its revenue growth.
The essential nature of waste management services helps the company to gain steady returns with low volatility. Its focus on pricing and cost control further enables it to maintain healthy profit margins, making the company’s stock appealing to long-term investors and those seeking safety during market fluctuations.
WM also drives stable revenues and incremental growth through acquisitions and technology investments. The acquisition of Stericycle complements WM’s business platform in the robust and dynamically growing medical waste sector. The acquisition also helped the company to achieve a $245 million increase in income from operations in 2025.
Waste Management, Inc. Revenue (TTM)
Waste Management, Inc. revenue-ttm | Waste Management, Inc. Quote
WM has been consistent in rewarding its shareholders through dividend payments and generating shareholder value. It paid dividends of $1.1 billion, $1.1 billion, $1.2 billion and $1.3 billion in 2022, 2023, 2024 and 2025, respectively. This shows the company’s dedication to maintaining a positive impression of its stock in the market.
Meanwhile, the company operates in a stable industry with consistent demand, leading to steady but modest stock price movements. Consequently, momentum-seeking investors, willing to take high risks, will avoid the stock due to the low momentum. Currently, it has a Momentum Score of F.
The company has accumulated significant debt, attributed to past acquisitions and ongoing investments in renewable energy. As of Dec. 31, 2025, the company had current debt of $711 million and long-term debt of around $22.2 billion compared with cash and equivalents of $201 million. These acquisitions and investments have increased operational costs and affected the company’s capacity to pursue other opportunities, despite assisting in the company’s growth.
The company also faces a significant liquidity concern. At the end of the fourth quarter of 2025, the company reported a current ratio of 0.89, lower than the industry's average of 1. A current ratio below 1 often suggests that the company may not be well-positioned to meet its short-term obligations.
Recently, WM reported dismal fourth-quarter 2025 results. It earned an adjusted profit of $1.93 per share, which missed the Zacks Consensus Estimate by 1% but increased 13.5% from the year-ago quarter. Revenues of $6.3 billion came 1.2% short of the consensus estimate but rose 7.1% year over year.
WM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots of Some Service Providers
FTI Consulting, Inc. (FCN - Free Report) reported impressive results for the fourth quarter of 2025.
FCN’s adjusted earnings per share of $1.78 beat the consensus mark by 39 cents and increased 14.1% from the year-ago quarter. FTI Consulting’s revenues of $990.7 million beat the Zacks Consensus Estimate of $911.4 million and rose 10.7% from the year-ago quarter.
Gartner, Inc. (IT - Free Report) posted impressive fourth-quarter 2025 results.
IT’s adjusted earnings were $3.94 per share, which beat the Zacks Consensus Estimate by 12.6%. The metric decreased 27.7% from the year-ago quarter. Gartner’s total revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% on a year-over-year basis.