Is Waste Management, Inc. (WM) the Best Waste Management Stock to Invest In Now?

From Yahoo Finance: 2025-03-29 18:47:00

The waste management industry is booming, with a market worth $1,293.70 billion in 2022 and a projected CAGR of 5.4% from 2023 to 2030. Strict laws are driving growth, with the collection segment holding over 62.0% market share in 2022.

Private equity and venture capital investments in waste management declined in 2024 as focus shifted to circular economy solutions. Global deals totaled $247.2 million, a sharp drop from $3.62 billion in 2023. The US, Canada, Europe, and Asia-Pacific saw varying investment amounts.

The UN projects a significant rise in municipal solid waste generation by 2050, with costs expected to quadruple without intervention. Waste management methods could reduce net expenses, while a circular economy could lead to a net gain. Action is needed to mitigate rising prices and environmental impact.

Waste Management, Inc. (WM) dominates the waste collection and disposal sector, boasting a strong market share and unrivaled landfill ownership. Recent acquisitions, including Stericycle for $7.2 billion, position the company for growth and success in the industry.

WM’s success is driven by its scale, effective capital allocation, and recession-proof revenues. The company consistently increases dividends, providing substantial returns to shareholders. Strong 2024 performance and anticipated free cash flow growth highlight WM’s financial strength and strategic investments.

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