Business Analysis of Waste Management

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Waste Management

WASTE MANAGEMENT

Business Overview

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns, develops, and operates landfill gas-to-energy facilities in the United States, as well as owns and operates transfer stations. As of December 31, 2016, the company owned or operated 95 MRFs; and 243 solid waste landfills and 5 secure hazardous waste landfills, as well as 310 transfer stations. It also provides materials processing and commodities recycling services; recycling brokerage services that comprise managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company offers construction and remediation services; services associated with the disposal of fly ash, and residue generated from the combustion of coal and other fuel stocks; in-plant services, such as full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations. Further, it provides portable self-storage, long distance moving, and fluorescent lamp recycling services; portable restroom services under the Port-o-Let name; and street and parking lot sweeping services, as well as holds interests in oil and gas producing properties. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is headquartered in Houston, Texas.

Waste Management

Waste Management


R&P Rank: 203
Sector: Industrial Support Services
Industry:Environmental Services
H.Q Location:Texas
Website: www.wm.com
Company Address:
1001 FANNIN STREET, STE 4000, HOUSTON TX 77002
Ph:713-512-6200

Business Analysis of Waste Management

The Industrial Support Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Waste Management compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Waste Management to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Waste Management with an interactive chart.

  1. Revenue Growth: Waste Management reported a revenue growth of 5.0% year-on-year during 2016. Environmental Services Industry grew at 1.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Waste Management spent 62.4% of its total revenues on COGS. Environmental Services industry average (COGS share of revenue) in the same period was 60.0%
  3. R&D share of Revenues: Waste Management R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Waste Management spent 10.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Environmental Services industry average SG&A spending in the same period was 18.6%
  5. Inventory share of Revenues: As a percentage of revenue, Waste Management spent 0.7% of its total revenues on Inventories. Environmental Services industry average Inventory spending in the same period was 3.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Waste Management invested 5.9% of its total revenues on Accounts Payable (A/P) Environmental Services industry average Accounts Payable investment in the same period was 6.7%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Waste Management invested 15.7% of its total revenues on Accounts Receivable (A/R). Environmental Services industry average Accounts Receivable investment in the same period was 15.9%
  8. PP&E share of Revenues: As a percentage of revenue, Waste Management invested 80.5% of its total revenues on Property, Plants, and Equipments (PP&E). Environmental Services industry average PPE investment in the same period was 57.8%
  9. Intangibles share of Revenues: As a percentage of revenue, Waste Management invested 50.0% of its total revenues on Intangibles. Environmental Services industry average Intangibles investment in the same period was 79.7%
  10. Net Margins: Waste Management Net Margins in the year 2016 were 8.7%. Environmental Services industry average Net Margins in the same period were 6.7%

Sector and Industry Association of Waste Management

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Waste Management is associated with Industrials Sector Group, Industrial Support Services Sector, and Environmental Services Industry.

Industrial Support Services sector is comprised of the following industries: Business Services; Consulting Services, Training and Professional Services; Staffing & Outsourcing Services; Environmental Services. The definitions for each of the industries is as follows:

  • Business Services industry includes providers of non financial services to a wide range of industrial enterprises and governments. This industry includes providers of uniform companies, Staffing and Outsourcing companies, office cleaning services, and companies that install, service and monitor alarm and security systems.
  • Consulting Services, Training and Professional Services industry includes companies that offer management consulting services to both public and Governmental agencies.
  • Staffing & Outsourcing Services industry includes companies providing contract, temporary, as well as permanent staff to clients with specific employment requirements. These companies also provide payroll and human resources outsourcing solutions for small and medium-sized businesses.
  • Environmental Services industry includes companies that provide consulting and services for pollution reduction and control, recycling, waste-to-energy conversion, and hazardous waste management.

Industry Ranking of Waste Management

With $13.6 billion revenues, Waste Management ranked number 1 of all the companies in the US Environmental Services industry. There were a total of 16 public companies in the US Environmental Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Environmental Services industry by revenues during 2016 were:

  1. Waste Management ($13.6 billion)
  2. Ecolab ($13.2 billion)
  3. Republic Services ($9.4 billion)
  4. Stericycle ($3.6 billion)
  5. Clean Harbors ($2.8 billion)
  6. Advanced Disposal Services ($1.4 billion)
  7. Casella Waste Systems ($565 million)
  8. Calgon Carbon ($514.2 million)
  9. US Ecology ($477.7 million)
  10. CECO Environmental ($417 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Waste Managementand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of waste-management

Ecolab (ECL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Ecolab Inc. with $13 billion revenues in the year 2016 was the number 2 Environmental Services company. Read this report to know the top competitors of Ecolab and identify growth and cost optimization opportunities of Ecolab

Republic Services (RSG) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Republic Services, Inc. with $9 billion revenues in the year 2016 was the number 3 Environmental Services company. Read this report to know the top competitors of Republic Services and identify growth and cost optimization opportunities of Republic Services

Stericycle (SRCL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Stericycle Inc with $4 billion revenues in the year 2016 was the number 4 Environmental Services company. Read this report to know the top competitors of Stericycle and identify growth and cost optimization opportunities of Stericycle

Clean Harbors (CLH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Clean Harbors Inc with $3 billion revenues in the year 2016 was the number 5 Environmental Services company. Read this report to know the top competitors of Clean Harbors and identify growth and cost optimization opportunities of Clean Harbors

Advanced Disposal Services (ADSW) Business Analysis – Analyze Historical Performance, Strategic...

Advanced Disposal Services, Inc. with $1 billion revenues in the year 2016 was the number 6 Environmental Services company. Read this report to know the top competitors of Advanced Disposal Services and identify growth and cost optimization opportunities of Advanced Disposal Services

Casella Waste Systems (CWST) Business Analysis – Analyze Historical Performance, Strategic...

Casella Waste Systems Inc with $565 million revenues in the year 2016 was the number 7 Environmental Services company. Read this report to know the top competitors of Casella Waste Systems and identify growth and cost optimization opportunities of Casella Waste Systems

Revenues Analysis

Waste Management (WM) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Waste Management Inc (WM) from 2012 to 2016. Waste Management generated a total of $13.6 billion revenues during 2016. Waste Management reported a revenue growth of 5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Waste Management (WM) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Waste Management Inc (WM) from 2002 to 2016. Waste Management generated a total of $13.6 billion revenues during 2016. Waste Management reported a revenue growth of 5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Waste Management (WM) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Waste Management Inc (WM) revenue growth with Environmental Services industry growth during the last five years from 2012 to 2016. Waste Management reported a revenue growth of 5% year-over-year during 2016. The Environmental Services industry growth was 1.4% year-over-year during 2016. Waste Management growth was faster than the industry during 2016.

Profit Analysis