WM – Market expectations are for Uniform ROA to improve, but management may be concerned about their free cash flow, acquisitions, and EBITDA

• Waste Management, Inc. (WM:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 34.3x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about their free cash flow, acquisition integration, and EBITDA
• Specifically, management may lack confidence in their ability to sustain recent free cash flow improvements, and they may be concerned about the pace of their ADS integration. Furthermore, they may be exaggerating the value their opening platform provides to customers, and they may lack confidence in their ability to sustain recent EBITDA improvements in their recycling segment