Waste Management Inc. (WM) exhibits 40.4% gross margins and 13.7% return on invested capital within Utilities (Environmental Services), balanced against a 20.2x enterprise multiple and 4.8% implied options volatility.
Sustained 40.4% gross profitability converts into 17.1% operating margin and 13.7% ROIC, outpacing sector cost of capital.
ROIC: 13.7% // GM: 40.4%YoY revenue trajectory of +14.2% paired with 5.35% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +14.2% // FCF YLD: 5.35%Altman Z-Score of 2.91 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 2.91 // F-SCORE: 6/9Trading at 33.9x trailing P/E (28.5x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 33.9x // EV/EBITDA: 20.2xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $233.45 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Environmental Services require continuous execution to defend 10.7% net margins.
NET MARGIN: 10.7% // D/E: 1.51x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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