Is WASTE MANAGEMENT INC (WM) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 23.1% / 30% | 0.2% / 30% | 4.1% / 30% | 1.07% / 5% | ✓ HALAL |
| DJIM | 23.1% / 33% | 0.2% / 33% | 4.1% / 33% | 1.07% / 5% | ✓ HALAL |
| MSCI | 50.0% / 33% | 0.4% / 33% | 8.8% / 33% | 1.07% / 5% | ✗ NOT HALAL |
| S&P | 23.1% / 33% | 0.2% / 33% | 4.1% / 33% | 1.07% / 5% | ✓ HALAL |
| FTSE | 50.0% / 33% | 0.4% / 33% | 8.8% / 50% | 1.07% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 40.4% | |
| Operating Margin | 20.0% | |
| Net Margin | 10.7% | |
| Return on Equity (ROE) | 29.7% | |
| Return on Assets (ROA) | 6.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $6.0B |
| Free Cash Flow | $2.8B |
| Total Debt | $22.9B |
| Debt-to-Equity | 239.4 |
| Current Ratio | 0.9 |
| Total Assets | $45.8B |
Price & Trading
| Last Close | $226.51 |
| 50-Day MA | $231.82 |
| 200-Day MA | $223.18 |
| Avg Volume | 2.2M |
| Beta | 0.5 |
|
52-Week Range
$194.11
| |
About WASTE MANAGEMENT INC (WM)
Waste Management, Inc., through its subsidiaries, provides environmental solutions to residential, commercial, industrial, and municipal customers in the United States, Canada, Western Europe, and internationally. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, recovery facility, or disposal site; owns and operates transfer stations; and owns, develops, and operates landfill gas-to-energy facilities that produce renewable electricity and renewable natural gas. It also operates materials processing and commodities recycling services, including cardboard, paper, glass, metals, plastics, construction and demolition materials, and other recycling commodities are recovered for resale or redirected for other purposes; markets and resells recycling commodities; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company collects recyclable food and yard waste, as well as markets and sells mulch, compost, soil amendments, and renewable energy; offers remediation and construction, and industrial waste services; and manages and markets fly ash. Further, it provides Regulated Waste and Compliance Services (RWCS), which offers compliance programs, as well as collection, processing, and disposal of regulated and specialized waste, including medical, pharmaceutical, and hazardous waste; and Secure Information Destruction (SID) services that include the collection of personal and confidential information for secure destruction and recycling of sorted office paper. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was founded in 1968 and is based in Houston, Texas.
Purification Calculator
As a halal stock with 1.07% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is WASTE MANAGEMENT INC (WM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), WASTE MANAGEMENT INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is WASTE MANAGEMENT INC's debt ratio?
WASTE MANAGEMENT INC's debt ratio is 23.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 50.0%.
Does WASTE MANAGEMENT INC require dividend purification?
Yes, WASTE MANAGEMENT INC has an impermissible income ratio of 1.07%, which means 1.07% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are WASTE MANAGEMENT INC's key financial metrics?
WASTE MANAGEMENT INC has a market capitalization of $90.8B, trailing P/E ratio of 33.5, and revenue of $25.2B. The company maintains a gross margin of 40.4% and a net margin of 10.7%. Return on equity stands at 29.7%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.