WASTE CONNECTIONS INC (WCN.CA) Fundamental Analysis & Valuation
TSX:WCN • CA94106B1013
Current stock price
220.28 CAD
-6.61 (-2.91%)
Last:
This WCN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. WCN.CA Profitability Analysis
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.
- Each year in the past 5 years WCN had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of WCN (4.98%) is better than 82.61% of its industry peers.
- Looking at the Return On Equity, with a value of 13.09%, WCN is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.69%, WCN belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for WCN is in line with the industry average of 6.34%.
- The 3 year average ROIC (7.41%) for WCN is below the current ROIC(7.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 13.09% | ||
| ROIC | 7.69% |
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
- Looking at the Profit Margin, with a value of 10.97%, WCN belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
- In the last couple of years the Profit Margin of WCN has grown nicely.
- With an excellent Operating Margin value of 19.58%, WCN belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
- WCN's Operating Margin has improved in the last couple of years.
- WCN has a Gross Margin of 42.50%. This is in the better half of the industry: WCN outperforms 73.91% 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 | 19.58% | ||
| PM (TTM) | 10.97% | ||
| GM | 42.5% |
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. WCN.CA Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WCN is destroying value.
- The number of shares outstanding for WCN has been reduced compared to 1 year ago.
- 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
- WCN has an Altman-Z score of 2.95. This is not the best score and indicates that WCN is in the grey zone with still only limited risk for bankruptcy at the moment.
- WCN's Altman-Z score of 2.95 is amongst the best of the industry. WCN outperforms 86.96% of its industry peers.
- WCN has a debt to FCF ratio of 7.99. This is a slightly negative value and a sign of low solvency as WCN would need 7.99 years to pay back of all of its debts.
- WCN has a better Debt to FCF ratio (7.99) than 60.87% of its industry peers.
- WCN has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
- WCN has a Debt to Equity ratio (1.13) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 7.99 | ||
| Altman-Z | 2.95 |
ROIC/WACC0.9
WACC8.58%
2.3 Liquidity
- A Current Ratio of 0.69 indicates that WCN may have some problems paying its short term obligations.
- WCN's Current ratio of 0.69 is on the low side compared to the rest of the industry. WCN is outperformed by 65.22% of its industry peers.
- A Quick Ratio of 0.69 indicates that WCN may have some problems paying its short term obligations.
- The Quick ratio of WCN (0.69) is worse than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. WCN.CA Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 7.58% over the past year.
- WCN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.21% yearly.
- The Revenue has been growing slightly by 5.89% in the past 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)7.58%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%8.85%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%6.39%
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 10.60% on average per year.
- WCN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.99% yearly.
EPS Next Y6.88%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
EPS Next 5Y10.6%
Revenue Next Year5.17%
Revenue Next 2Y5.67%
Revenue Next 3Y6.04%
Revenue Next 5Y5.99%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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. WCN.CA Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.85, the valuation of WCN can be described as expensive.
- Based on the Price/Earnings ratio, WCN is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.91, WCN is valued at the same level.
- Based on the Price/Forward Earnings ratio of 25.68, the valuation of WCN can be described as expensive.
- WCN's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, WCN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 25.68 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WCN.
- WCN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WCN is cheaper than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.22 | ||
| EV/EBITDA | 16.02 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- WCN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.49
PEG (5Y)2.17
EPS Next 2Y10.67%
EPS Next 3Y11.45%
5. WCN.CA Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.79%, WCN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.09, WCN pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.79, WCN pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
- On average, the dividend of WCN grows each year by 11.37%, which is quite nice.
- 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 Years8
Div Non Decr Years8
5.3 Sustainability
- WCN pays out 32.35% 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.
DP32.35%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
WCN.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:WCN (4/27/2026, 7:00:00 PM)
220.28
-6.61 (-2.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)04-22 2026-04-22/amc
Earnings (Next)07-21 2026-07-21/amc
Inst Owners90.16%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap56.14B
Revenue(TTM)9.61B
Net Income(TTM)1.05B
Analysts83
Price Target278.88 (26.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend1.78
Dividend Growth(5Y)11.37%
DP32.35%
Div Incr Years8
Div Non Decr Years8
Ex-Date02-25 2026-02-25 (0.35)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.23%
Min EPS beat(2)-0.31%
Max EPS beat(2)2.78%
EPS beat(4)3
Avg EPS beat(4)1.9%
Min EPS beat(4)-0.31%
Max EPS beat(4)3.11%
EPS beat(8)6
Avg EPS beat(8)1.46%
EPS beat(12)9
Avg EPS beat(12)1.39%
EPS beat(16)12
Avg EPS beat(16)1.67%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)-0.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.23%
Revenue beat(12)2
Avg Revenue beat(12)-0.33%
Revenue beat(16)4
Avg Revenue beat(16)-0.3%
PT rev (1m)36.34%
PT rev (3m)35.73%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-3.54%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-4.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 25.68 | ||
| P/S | 4.3 | ||
| P/FCF | 36.22 | ||
| P/OCF | 17.07 | ||
| P/B | 5.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.02 |
EPS(TTM)7.14
EY3.24%
EPS(NY)8.58
Fwd EY3.89%
FCF(TTM)6.08
FCFY2.76%
OCF(TTM)12.9
OCFY5.86%
SpS51.28
BVpS43
TBVpS-12.36
PEG (NY)4.49
PEG (5Y)2.17
Graham Number83.1143 (-62.27%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 13.09% | ||
| ROCE | 9.81% | ||
| ROIC | 7.69% | ||
| ROICexc | 7.73% | ||
| ROICexgc | 16.96% | ||
| OM | 19.58% | ||
| PM (TTM) | 10.97% | ||
| GM | 42.5% | ||
| FCFM | 11.86% |
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-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 7.99 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 101.72% | ||
| Cap/Sales | 13.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.05% | ||
| Profit Quality | 108.08% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.95 |
F-Score7
WACC8.58%
ROIC/WACC0.9
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)7.58%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%8.85%
EPS Next Y6.88%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
EPS Next 5Y10.6%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%6.39%
Revenue Next Year5.17%
Revenue Next 2Y5.67%
Revenue Next 3Y6.04%
Revenue Next 5Y5.99%
EBIT growth 1Y8.23%
EBIT growth 3Y12.78%
EBIT growth 5Y15.71%
EBIT Next Year80.5%
EBIT Next 3Y28.36%
EBIT Next 5Y19.2%
FCF growth 1Y-8.58%
FCF growth 3Y3.2%
FCF growth 5Y10.39%
OCF growth 1Y11.19%
OCF growth 3Y6.08%
OCF growth 5Y11.38%
WASTE CONNECTIONS INC / WCN.CA Fundamental Analysis 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 4 / 10 to WASTE CONNECTIONS INC (WCN.CA). This can be considered as Fairly Valued.
How profitable is WASTE CONNECTIONS INC (WCN.CA) stock?
WASTE CONNECTIONS INC (WCN.CA) has a profitability rating of 8 / 10.
How financially healthy is WASTE CONNECTIONS INC?
The financial health rating of WASTE CONNECTIONS INC (WCN.CA) is 3 / 10.
How sustainable is the dividend of WASTE CONNECTIONS INC (WCN.CA) stock?
The dividend rating of WASTE CONNECTIONS INC (WCN.CA) is 5 / 10 and the dividend payout ratio is 32.35%.