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Waste Management - AI Stock Analysis
Analysis generated July 29, 2024
Waste Management, Inc. (NYSE: WM) is the leading provider of comprehensive waste management environmental services in North America. The company provides services to residential, commercial, industrial, and municipal customers in the United States and Canada. Waste Management’s offerings include collection, recycling, resource recovery, and disposal services. The company is known for its commitment to sustainability and innovation in waste management solutions.
Fundamental Analysis
Revenue: For the last quarter, Waste Management reported revenue of $5.4 billion. This represents an increase of 4.41% compared to the previous quarter and a 5.43% increase compared to the same quarter last year. This consistent growth in revenue is a positive indicator of the company’s ability to generate increased sales over time.
Net Income: The company posted a net income of $680 million in the last quarter. Although this is a 3.95% decrease from the previous quarter, it shows a substantial 10.57% increase when compared to the same quarter last year. This year-over-year growth in net income is encouraging despite the quarterly decline, pointing to overall financial health.
EBITDA: Waste Management reported an EBITDA of $0 for the last quarter, implying a 100% decrease compared to both the previous quarter and the same quarter last year. This is a significant concern as it suggests issues in profitability and operating efficiency.
P/E Ratio: The current price-to-earnings (P/E) ratio stands at 31.36. This high P/E ratio could indicate that the stock is potentially overvalued, which might lead investors to adopt a cautious or bearish outlook.
Technical Analysis
Current Stock Price: Waste Management's stock is currently priced at $196.96, reflecting a decrease of 7.68% compared to a month ago. However, the stock price has increased by 22.81% compared to a year ago, suggesting a strong long-term trend despite the recent decline.
Simple Moving Average (SMA): The current SMA10 is 209.29, which is lower than the previous SMA10 of 211.88. This downward shift in the short-term moving average indicates a potential bearish trend in price movement.
Relative Strength Index (RSI): The RSI is currently at 42.2, suggesting neutral market conditions. An RSI value below 30 typically indicates oversold conditions, while above 70 suggests overbought conditions.
Alternative Data Analysis
Job Postings and Employee Sentiment: Waste Management has 838 open positions, reflecting a 10% decrease over the last few months. This decline may indicate efforts to cut costs or improve margins, which could be a concern for growth prospects.
Customer Acquisition: Waste Management’s webpage receives approximately 3.8 million visitors, with a 7% increase over the last few months. Additionally, the company's mobile applications are downloaded by around 260 users daily, reflecting a 22% increase. These bullish trends indicate potential growth in customer base and engagement.
Customer Engagement: Waste Management has 61,000 followers on Instagram and 49,000 followers on Twitter, with no meaningful changes recently. Social media engagement appears stagnant.
AI Score: According to AltIndex, Waste Management’s AI score is 55, suggesting a hold signal based on a comprehensive analysis of fundamental, technical, and alternative data.
Conclusion and Recommendation
Waste Management exhibits positive revenue and net income growth on a year-over-year basis, signaling a strong upward trend in financial performance. However, the complete loss of EBITDA remains a critical concern. The high P/E ratio may indicate potential overvaluation, requiring careful consideration by investors.
Technically, the stock has experienced short-term bearish trends, reflected in the decrease in stock price and SMA10 shifts. However, the long-term price increase is a positive indicator.
From an alternative data standpoint, the decrease in job postings suggests cost control measures, while increased webpage visitors and app downloads point to potential customer growth. Stagnant social media engagement is less clear in how it affects overall performance, though it might impact brand presence and customer communication channels.
Overall, given the mixed signals from fundamental and technical analyses, and the alternative data trends, the recommendation aligns with the AI score of 55 - a hold signal. Investors should monitor the company’s next earnings report closely, especially for improvements in profitability and operating efficiency.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.