158K Reasons To Be Bullish On Waste Management Stock

SEAN MENKE, Board Member at Waste Management (NYSE:WM), disclosed an insider purchase on July 16, based on a new SEC filing.

What Happened: MENKE's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, involves purchasing 696 shares of Waste Management. The total transaction value is $158,301.

The latest update on Thursday morning shows Waste Management shares down by 0.31%, trading at $225.16.

Get to Know Waste Management Better

WM ranks as the largest integrated provider of traditional solid waste and medical waste services in the United States, operating 262 active landfills, about 506 solid and medical waste transfer stations, and 105 recycling facilities. The company serves residential, commercial, industrial, and medical end markets and is also a leading recycler in North America.

A Deep Dive into Waste Management's Financials

Revenue Growth: Waste Management's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 16.65%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Analyzing Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 39.4%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Waste Management's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.58.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.76, caution is advised due to increased financial risk.

Market Valuation:

• Price to Earnings (P/E) Ratio: Waste Management's P/E ratio of 34.02 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.98 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Waste Management's EV/EBITDA ratio at 17.65 suggests potential undervaluation, falling below industry averages.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Understanding the Significance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Understanding Crucial Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Waste Management's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.