Quality score · WM · Industrials

Is Waste Management, Inc. a quality business?

Waste Management, Inc. (WM) scored on five pillars from its reported financial statements, and ranked against 270 Industrials companies.

6.1/ 10
Solid quality
as of October 18, 2026
Profitability
6.7 Average
Solvency
4.2 Average
Growth
5.5 Average
Efficiency
6.0 Average
Predictability
8.0 Strong
Strongest pillar: Predictability · Weakest: Solvency

Waste Management, Inc. (WM) scores 6.1 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on predictability, and solvency is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Waste Management, Inc. have an economic moat?

Wide moat

Waste Management, Inc.’s returns on capital beat their cost in almost every measured year, by a clear margin: 4 of 5 indicators passed.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How Waste Management, Inc. scores

On the filings behind it, Waste Management, Inc. earns 6.1 out of 10 for business quality as of October 18, 2026. That is solid quality on our scale. A solid reading is a respectable business with clear strengths and at least one area that falls short of the best in its field. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.

Set against 270 Industrials companies, Waste Management, Inc. lands at the 62nd percentile, in the better half of its peers. The median across the group is 5.6, and the top quarter begins at 6.5, so Waste Management, Inc. is above the typical company here.

Pillar by pillar

Profitability

Profitability scores 6.7 out of 10, which reads as average. The median across 262 Industrials companies is 4.9, so Waste Management, Inc. is well above its peers on this pillar and ranks at the 75th percentile. Profitability in the middle of the range is neither a moat nor a warning: margins and returns look like those of an ordinary business in this line of work.

Solvency

On solvency, Waste Management, Inc. scores 4.2, an average reading. Its peers have a median of 7.1 across 241 Industrials companies, which places it well below them, at the 17th percentile. Leverage in the middle of the range is rarely a problem in good years, and it is worth watching how quickly it would tighten in a weak one.

Growth

Waste Management, Inc.’s growth score is 5.5 out of 10 (average). Against a median of 5.4 among 216 Industrials companies, that is in line with the group and the 51st percentile. Growth near the median is neither a reason to buy nor a concern, but it does mean the quality case rests more on the other pillars.

Efficiency

Efficiency scores 6.0 out of 10, which reads as average. The median across 264 Industrials companies is 6.2, so Waste Management, Inc. is in line with its peers on this pillar and ranks at the 44th percentile. An average efficiency reading suggests the business turns its assets and earnings into cash at roughly the rate its sector does.

Predictability

Waste Management, Inc.’s predictability score is 8.0 out of 10 (strong). Against a median of 5.0 among 267 Industrials companies, that is well above the group and the 93rd percentile. Steady results like these are what make a long term view of the business easier to hold.

Strongest and weakest pillar

This is a lopsided profile. Predictability scores 8.0 but solvency only 4.2, a gap of 3.8 points, so the overall hides a business that is excellent in one respect and weak in another. A predictability lead means consistency is the business’s strongest trait, which makes its other readings easier to trust. A solvency shortfall makes the business more exposed to rising rates and to a weak year.

What would move the score

Of everything that could lift Waste Management, Inc.’s score, solvency matters most. Bringing it up to the 7.1 median of Industrials companies would take the overall from 6.1 to roughly 6.7. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.

Waste Management, Inc. and similar companies

These are the Industrials companies closest to Waste Management, Inc. in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.

What each pillar measures

Profitability

6.7 / 10

How much profit the company generates from its capital and sales.

Solvency

4.2 / 10

The company’s ability to service debt and meet its obligations.

Growth

5.5 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

6.0 / 10

How well assets and earnings convert into cash and output.

Predictability

8.0 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Waste Management, Inc. a quality business?

On this reading Waste Management, Inc. scores 6.1 out of 10, which reads as solid quality. Its strongest pillar is predictability, its weakest is solvency. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Waste Management, Inc. compare with other Industrials companies?

Waste Management, Inc. ranks at the 62nd percentile of the 270 Industrials companies Lemma publishes a score for. The median there is 5.6 and the top quarter starts at 6.5, against Waste Management, Inc.’s 6.1.

What does the WM quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 18, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for WM are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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