Waste Management Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$748.00 | Wfwp | Pjmhlksb |
WM's Strong Operating Performance Continues; Company Maintains Full-Year Guidance
Wide-moat WM reported third-quarter results that were mostly in line with our expectations. Overall, the company delivered strong results, which featured 9% year-over-year revenue growth, 50 basis points of adjusted EBITDA margin expansion to 28.6%, and 24% adjusted EPS growth to $1.56. Management maintained its full-year guidance for about 10% revenue growth and a 28.1% adjusted EBITDA margin (at the midpoint of guidance). We project that WM will modestly exceed these targets. We’ve increased our fair value estimate by about 1% to $129 per share primarily due to the time value of money since our last update.