FCF Yield

WM’s current free cash flow yield of 2.9% means that for every $100 invested in the stock, the company generates $2.90 in free cash flow (cash left after capital spending) each year—a measure of how much cash the business returns to shareholders relative to its price.

Compared to its sector, this yield sits well below the sector median of 4.2%, placing WM in the 33rd percentile, meaning two-thirds of peers offer a higher cash return. The metric has been decreasing over the last eight quarters, with a quarter-over-quarter decline of 3.3% from 3.0% in the prior period; no year-over-year change is available. The combination of a below-median yield and a downward trend suggests the stock is becoming less attractive from a cash-return perspective, pointing to higher valuation or softer cash generation—factors that raise investment risk rather than present a clear opportunity. This weakening FCF yield supports the overall NEUTRAL verdict, as it neither confirms a compelling bargain nor signals a severe deterioration that would justify a bearish call.

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