WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
TSX:WCN • CA94106B1013
234.73 CAD
+3.05 (+1.32%)
Last: Feb 27, 2026, 07:00 PM
WCN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 industry peers in the Commercial Services & Supplies industry. While WCN has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, WCN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year WCN was profitable.
- In the past year WCN had a positive cash flow from operations.
- In the past 5 years WCN has always been profitable.
- WCN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of WCN (5.10%) is better than 83.33% of its industry peers.
- With a decent Return On Equity value of 13.06%, WCN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- WCN's Return On Invested Capital of 7.60% is amongst the best of the industry. WCN outperforms 83.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WCN is in line with the industry average of 5.85%.
- The last Return On Invested Capital (7.60%) for WCN is above the 3 year average (7.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 13.06% | ||
| ROIC | 7.6% |
ROA(3y)4.16%
ROA(5y)4.31%
ROE(3y)10.28%
ROE(5y)10.29%
ROIC(3y)7.41%
ROIC(5y)7%
1.3 Margins
- WCN has a better Profit Margin (11.37%) than 87.50% of its industry peers.
- WCN's Profit Margin has improved in the last couple of years.
- The Operating Margin of WCN (19.48%) is better than 95.83% of its industry peers.
- WCN's Operating Margin has improved in the last couple of years.
- WCN has a better Gross Margin (42.37%) than 79.17% of its industry peers.
- In the last couple of years the Gross Margin of WCN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.48% | ||
| PM (TTM) | 11.37% | ||
| GM | 42.37% |
OM growth 3Y3.01%
OM growth 5Y3.6%
PM growth 3Y-0.62%
PM growth 5Y24.78%
GM growth 3Y2.05%
GM growth 5Y1.25%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WCN is destroying value.
- WCN has less shares outstanding than it did 1 year ago.
- WCN has less shares outstanding than it did 5 years ago.
- WCN has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.08 indicates that WCN is not in any danger for bankruptcy at the moment.
- WCN has a Altman-Z score of 3.08. This is amongst the best in the industry. WCN outperforms 83.33% of its industry peers.
- WCN has a debt to FCF ratio of 7.23. This is a slightly negative value and a sign of low solvency as WCN would need 7.23 years to pay back of all of its debts.
- The Debt to FCF ratio of WCN (7.23) is better than 62.50% of its industry peers.
- A Debt/Equity ratio of 1.07 is on the high side and indicates that WCN has dependencies on debt financing.
- WCN has a Debt to Equity ratio (1.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.23 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.95
WACC7.97%
2.3 Liquidity
- A Current Ratio of 0.62 indicates that WCN may have some problems paying its short term obligations.
- The Current ratio of WCN (0.62) is worse than 70.83% of its industry peers.
- A Quick Ratio of 0.58 indicates that WCN may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.58, WCN is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.52% over the past year.
- Measured over the past years, WCN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.21% on average per year.
- Looking at the last year, WCN shows a small growth in Revenue. The Revenue has grown by 6.14% in the last year.
- WCN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.69% yearly.
EPS 1Y (TTM)7.52%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%11.21%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%5%
3.2 Future
- Based on estimates for the next years, WCN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.51% on average per year.
- Based on estimates for the next years, WCN will show a small growth in Revenue. The Revenue will grow by 6.27% on average per year.
EPS Next Y11.61%
EPS Next 2Y12.62%
EPS Next 3Y13.89%
EPS Next 5Y8.51%
Revenue Next Year5.38%
Revenue Next 2Y5.87%
Revenue Next 3Y6.21%
Revenue Next 5Y6.27%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 33.34, which means the current valuation is very expensive for WCN.
- Compared to the rest of the industry, the Price/Earnings ratio of WCN indicates a somewhat cheap valuation: WCN is cheaper than 66.67% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of WCN to the average of the S&P500 Index (27.13), we can say WCN is valued slightly more expensively.
- A Price/Forward Earnings ratio of 29.87 indicates a quite expensive valuation of WCN.
- The rest of the industry has a similar Price/Forward Earnings ratio as WCN.
- WCN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.34 | ||
| Fwd PE | 29.87 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WCN is on the same level as its industry peers.
- WCN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.04 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WCN does not grow enough to justify the current Price/Earnings ratio.
- WCN has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as WCN's earnings are expected to grow with 13.89% in the coming years.
PEG (NY)2.87
PEG (5Y)2.35
EPS Next 2Y12.62%
EPS Next 3Y13.89%
5. Dividend
5.1 Amount
- WCN has a yearly dividend return of 0.81%, which is pretty low.
- WCN's Dividend Yield is a higher than the industry average which is at 1.06.
- Compared to an average S&P500 Dividend Yield of 1.82, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
- The dividend of WCN is nicely growing with an annual growth rate of 11.37%!
- WCN has paid a dividend for at least 10 years, which is a reliable track record.
- As WCN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.37%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- WCN pays out 31.01% of its income as dividend. This is a sustainable payout ratio.
- WCN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.01%
EPS Next 2Y12.62%
EPS Next 3Y13.89%
TSX:WCN (2/27/2026, 7:00:00 PM)
234.73
+3.05 (+1.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-11 2026-02-11/amc
Earnings (Next)04-21 2026-04-21/amc
Inst Owners89.12%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap60.10B
Revenue(TTM)9.47B
Net Income(TTM)1.08B
Analysts83
Price Target204.55 (-12.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.78
Dividend Growth(5Y)11.37%
DP31.01%
Div Incr Years7
Div Non Decr Years7
Ex-Date02-25 2026-02-25 (0.35)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-0.31%
Max EPS beat(2)3.11%
EPS beat(4)3
Avg EPS beat(4)1.65%
Min EPS beat(4)-0.31%
Max EPS beat(4)3.11%
EPS beat(8)6
Avg EPS beat(8)1.47%
EPS beat(12)9
Avg EPS beat(12)1.17%
EPS beat(16)11
Avg EPS beat(16)1.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)-0.45%
Revenue beat(8)2
Avg Revenue beat(8)-0.2%
Revenue beat(12)2
Avg Revenue beat(12)-0.36%
Revenue beat(16)5
Avg Revenue beat(16)-0.21%
PT rev (1m)-0.45%
PT rev (3m)-29.01%
EPS NQ rev (1m)-5.12%
EPS NQ rev (3m)-5.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.34 | ||
| Fwd PE | 29.87 | ||
| P/S | 4.64 | ||
| P/FCF | 36.04 | ||
| P/OCF | 18.21 | ||
| P/B | 5.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.14 |
EPS(TTM)7.04
EY3%
EPS(NY)7.86
Fwd EY3.35%
FCF(TTM)6.51
FCFY2.77%
OCF(TTM)12.89
OCFY5.49%
SpS50.55
BVpS44.03
TBVpS-11.5
PEG (NY)2.87
PEG (5Y)2.35
Graham Number83.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 13.06% | ||
| ROCE | 9.7% | ||
| ROIC | 7.6% | ||
| ROICexc | 7.62% | ||
| ROICexgc | 16.88% | ||
| OM | 19.48% | ||
| PM (TTM) | 11.37% | ||
| GM | 42.37% | ||
| FCFM | 12.88% |
ROA(3y)4.16%
ROA(5y)4.31%
ROE(3y)10.28%
ROE(5y)10.29%
ROIC(3y)7.41%
ROIC(5y)7%
ROICexc(3y)7.44%
ROICexc(5y)7.03%
ROICexgc(3y)16.68%
ROICexgc(5y)15.84%
ROCE(3y)9.46%
ROCE(5y)8.93%
ROICexgc growth 3Y5.3%
ROICexgc growth 5Y5.84%
ROICexc growth 3Y5.56%
ROICexc growth 5Y6.23%
OM growth 3Y3.01%
OM growth 5Y3.6%
PM growth 3Y-0.62%
PM growth 5Y24.78%
GM growth 3Y2.05%
GM growth 5Y1.25%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.23 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 96.94% | ||
| Cap/Sales | 12.62% | ||
| Interest Coverage | 5.98 | ||
| Cash Conversion | 78.48% | ||
| Profit Quality | 113.3% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 3.08 |
F-Score6
WACC7.97%
ROIC/WACC0.95
Cap/Depr(3y)93.59%
Cap/Depr(5y)94.33%
Cap/Sales(3y)12.03%
Cap/Sales(5y)12.17%
Profit Quality(3y)153.2%
Profit Quality(5y)149.35%
High Growth Momentum
Growth
EPS 1Y (TTM)7.52%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%11.21%
EPS Next Y11.61%
EPS Next 2Y12.62%
EPS Next 3Y13.89%
EPS Next 5Y8.51%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%5%
Revenue Next Year5.38%
Revenue Next 2Y5.87%
Revenue Next 3Y6.21%
Revenue Next 5Y6.27%
EBIT growth 1Y8.05%
EBIT growth 3Y12.78%
EBIT growth 5Y15.71%
EBIT Next Year80.5%
EBIT Next 3Y28.11%
EBIT Next 5Y19.54%
FCF growth 1Y3.99%
FCF growth 3Y3.2%
FCF growth 5Y10.39%
OCF growth 1Y8.31%
OCF growth 3Y6.08%
OCF growth 5Y11.38%
WASTE CONNECTIONS INC / WCN.CA FAQ
What is the ChartMill fundamental rating of WASTE CONNECTIONS INC (WCN.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WCN.CA.
What is the valuation status of WASTE CONNECTIONS INC (WCN.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to WASTE CONNECTIONS INC (WCN.CA). This can be considered as Overvalued.
What is the profitability of WCN stock?
WASTE CONNECTIONS INC (WCN.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of WASTE CONNECTIONS INC (WCN.CA) stock?
The Price/Earnings (PE) ratio for WASTE CONNECTIONS INC (WCN.CA) is 33.34 and the Price/Book (PB) ratio is 5.33.
Can you provide the dividend sustainability for WCN stock?
The dividend rating of WASTE CONNECTIONS INC (WCN.CA) is 5 / 10 and the dividend payout ratio is 31.01%.