WM changes
Pick any two versions below to diff them.
- Price
- $208.83 → $226.86(+8.6%)
- Discount
- 5.1% → -3.1%(−8.2 pts)
- Risks
- Healthcare Solutions, the segment built from the 2024 Stericycle acquisition, has revenue below plan. Its revenue was $1,252 million in the first half of 2026, down from $1,265 million a year earlier, while management had guided to about 3% growth for 2026. Management says the synergies are on track for more than $300 million by the end of 2027, but the segment needs revenue growth to meet its plan. WM already trades close to its estimated fair value, about a 5% discount. This leaves little room for error. If growth or margins disappoint, the stock has less of a cushion than a more deeply discounted pick would. Recycling profit depends on prices for paper, plastic, and other recovered materials that WM does not control. Management estimates that a $10-per-ton move in the blended single-stream recycled-commodity price changes operating EBITDA by about $27 million. WM is going through two senior leadership changes close together. CFO David Reed started in November 2025, and CEO Jim Fish is retiring, with John Morris taking over in January 2027. Two transitions this close together add execution risk. New state rules on PFAS chemicals in landfills, plus rising fuel and labor costs, could raise WM's operating expenses faster than its pricing can offset them.