WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
Canada - TSX:WCN - CA94106B1013 - Common Stock
242.07 CAD
-1.77 (-0.73%)
Overall WCN gets a fundamental rating of 5 out of 10. We evaluated WCN against 24 industry peers in the Commercial Services & Supplies industry. While WCN has a great profitability rating, there are quite some 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.
WCN had a positive operating cash flow in the past year.
WCN had positive earnings in each of the past 5 years.
In the past 5 years WCN always reported a positive cash flow from operatings.
1.2 Ratios
WCN's Return On Assets of 3.11% is fine compared to the rest of the industry. WCN outperforms 79.17% of its industry peers.
WCN has a better Return On Equity (7.71%) than 70.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.49%, WCN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WCN is in line with the industry average of 7.32%.
The last Return On Invested Capital (7.49%) for WCN is above the 3 year average (7.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 7.71% | ||
| ROIC | 7.49% |
ROA(3y)4.08%
ROA(5y)3.58%
ROE(3y)9.84%
ROE(5y)8.27%
ROIC(3y)7.1%
ROIC(5y)6.62%
1.3 Margins
WCN's Profit Margin of 6.97% is fine compared to the rest of the industry. WCN outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of WCN has declined.
Looking at the Operating Margin, with a value of 19.12%, WCN belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
In the last couple of years the Operating Margin of WCN has grown nicely.
With a decent Gross Margin value of 42.03%, WCN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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 | 19.12% | ||
| PM (TTM) | 6.97% | ||
| GM | 42.03% |
OM growth 3Y2.81%
OM growth 5Y2.48%
PM growth 3Y-11.67%
PM growth 5Y-8.02%
GM growth 3Y0.97%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WCN is destroying value.
Compared to 1 year ago, WCN has about the same amount of shares outstanding.
WCN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WCN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.21 indicates that WCN is not in any danger for bankruptcy at the moment.
WCN's Altman-Z score of 3.21 is amongst the best of the industry. WCN outperforms 83.33% of its industry peers.
WCN has a debt to FCF ratio of 7.32. This is a slightly negative value and a sign of low solvency as WCN would need 7.32 years to pay back of all of its debts.
WCN has a Debt to FCF ratio (7.32) which is in line with its industry peers.
A Debt/Equity ratio of 1.00 indicates that WCN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.00, WCN is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.92
WACC8.13%
2.3 Liquidity
WCN has a Current Ratio of 0.67. This is a bad value and indicates that WCN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.67, WCN is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
WCN has a Quick ratio of 0.67. This is in the lower half of the industry: WCN underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
WCN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
Measured over the past years, WCN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.90% on average per year.
The Revenue has grown by 9.65% in the past year. This is quite good.
Measured over the past years, WCN shows a quite strong growth in Revenue. The Revenue has been growing by 10.60% on average per year.
EPS 1Y (TTM)8.11%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%4.03%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%7.07%
3.2 Future
WCN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.90% yearly.
Based on estimates for the next years, WCN will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.
EPS Next Y7.72%
EPS Next 2Y10.85%
EPS Next 3Y11.52%
EPS Next 5Y11.9%
Revenue Next Year6.38%
Revenue Next 2Y6.7%
Revenue Next 3Y6.92%
Revenue Next 5Y7.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WCN is valuated quite expensively with a Price/Earnings ratio of 35.55.
WCN's Price/Earnings ratio is a bit cheaper when compared to the industry. WCN is cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. WCN is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 29.76, the valuation of WCN can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WCN is on the same level as its industry peers.
WCN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 29.76 |
4.2 Price Multiples
WCN's Enterprise Value to EBITDA is on the same level as the industry average.
WCN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.49 | ||
| EV/EBITDA | 17.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WCN may justify a higher PE ratio.
PEG (NY)4.6
PEG (5Y)2.99
EPS Next 2Y10.85%
EPS Next 3Y11.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, WCN is not a good candidate for dividend investing.
WCN's Dividend Yield is a higher than the industry average which is at 2.34.
With a Dividend Yield of 0.73, WCN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of WCN is nicely growing with an annual growth rate of 12.03%!
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)12.03%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
WCN pays out 49.38% of its income as dividend. This is a bit on the high side, but may be sustainable.
WCN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.38%
EPS Next 2Y10.85%
EPS Next 3Y11.52%
TSX:WCN (9/15/2025, 7:00:00 PM)
242.07
-1.77 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.49%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap62.24B
Analysts81.18
Price Target285.73 (18.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend1.62
Dividend Growth(5Y)12.03%
DP49.38%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.89%
Min EPS beat(2)1.76%
Max EPS beat(2)2.03%
EPS beat(4)3
Avg EPS beat(4)0.3%
Min EPS beat(4)-5.03%
Max EPS beat(4)2.46%
EPS beat(8)7
Avg EPS beat(8)1.43%
EPS beat(12)9
Avg EPS beat(12)1.43%
EPS beat(16)12
Avg EPS beat(16)1.43%
Revenue beat(2)0
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)0.84%
Revenue beat(8)2
Avg Revenue beat(8)-0.22%
Revenue beat(12)3
Avg Revenue beat(12)-0.28%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)0%
PT rev (3m)0.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)-3.21%
EPS NY rev (3m)-3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 29.76 | ||
| P/S | 4.88 | ||
| P/FCF | 39.49 | ||
| P/OCF | 19.52 | ||
| P/B | 5.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.88 |
EPS(TTM)6.81
EY2.81%
EPS(NY)8.13
Fwd EY3.36%
FCF(TTM)6.13
FCFY2.53%
OCF(TTM)12.4
OCFY5.12%
SpS49.64
BVpS44.91
TBVpS-10.37
PEG (NY)4.6
PEG (5Y)2.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 7.71% | ||
| ROCE | 9.45% | ||
| ROIC | 7.49% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 16.88% | ||
| OM | 19.12% | ||
| PM (TTM) | 6.97% | ||
| GM | 42.03% | ||
| FCFM | 12.35% |
ROA(3y)4.08%
ROA(5y)3.58%
ROE(3y)9.84%
ROE(5y)8.27%
ROIC(3y)7.1%
ROIC(5y)6.62%
ROICexc(3y)7.13%
ROICexc(5y)6.71%
ROICexgc(3y)16.04%
ROICexgc(5y)15.16%
ROCE(3y)8.97%
ROCE(5y)8.36%
ROICexcg growth 3Y4.71%
ROICexcg growth 5Y6.27%
ROICexc growth 3Y5.49%
ROICexc growth 5Y5.39%
OM growth 3Y2.81%
OM growth 5Y2.48%
PM growth 3Y-11.67%
PM growth 5Y-8.02%
GM growth 3Y0.97%
GM growth 5Y0.56%
F-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 96.17% | ||
| Cap/Sales | 12.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.45% | ||
| Profit Quality | 177.13% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.21 |
F-Score5
WACC8.13%
ROIC/WACC0.92
Cap/Depr(3y)94.39%
Cap/Depr(5y)92.61%
Cap/Sales(3y)12.05%
Cap/Sales(5y)12.09%
Profit Quality(3y)159.7%
Profit Quality(5y)199.37%
High Growth Momentum
Growth
EPS 1Y (TTM)8.11%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%4.03%
EPS Next Y7.72%
EPS Next 2Y10.85%
EPS Next 3Y11.52%
EPS Next 5Y11.9%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%7.07%
Revenue Next Year6.38%
Revenue Next 2Y6.7%
Revenue Next 3Y6.92%
Revenue Next 5Y7.57%
EBIT growth 1Y8.5%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year80.4%
EBIT Next 3Y29.5%
EBIT Next 5Y19.74%
FCF growth 1Y0.91%
FCF growth 3Y7.13%
FCF growth 5Y6.05%
OCF growth 1Y11.69%
OCF growth 3Y9.49%
OCF growth 5Y7.67%