WASTE CONNECTIONS INC (WCN.CA) Fundamental Analysis & Valuation
TSX:WCN • CA94106B1013
235.98 CAD
-0.73 (-0.31%)
Last: Mar 3, 2026, 07:00 PM
This WCN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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. WCN has an excellent profitability rating, but there are some minor concerns on its financial health. WCN is quite expensive at the moment. It does show a decent growth rate.
1. WCN.CA Profitability Analysis
1.1 Basic Checks
- WCN had positive earnings in the past year.
- 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
- With an excellent Return On Assets value of 5.10%, WCN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 13.06%, WCN is in the better half of 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 Profit Margin of 11.37%. This is amongst the best in the industry. WCN outperforms 87.50% of its industry peers.
- In the last couple of years the Profit Margin of WCN has grown nicely.
- WCN's Operating Margin of 19.48% is amongst the best of the industry. WCN outperforms 95.83% of its industry peers.
- In the last couple of years the Operating Margin of WCN has grown nicely.
- WCN has a Gross Margin of 42.37%. This is in the better half of the industry: WCN outperforms 79.17% of its industry peers.
- WCN's Gross Margin has been stable in the last couple of years.
| 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. WCN.CA Health Analysis
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.
- Compared to 5 years ago, WCN has less shares outstanding
- WCN has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.10 indicates that WCN is not in any danger for bankruptcy at the moment.
- WCN has a Altman-Z score of 3.10. 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.
- Looking at the Debt to FCF ratio, with a value of 7.23, WCN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- WCN has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
- WCN has a Debt to Equity ratio (1.07) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.23 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.95
WACC8.04%
2.3 Liquidity
- A Current Ratio of 0.62 indicates that WCN may have some problems paying its short term obligations.
- With a Current ratio value of 0.62, WCN is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
- WCN has a Quick Ratio of 0.62. This is a bad value and indicates that WCN is not financially healthy enough and could expect problems in meeting its short term obligations.
- WCN's Quick ratio of 0.58 is on the low side compared to the rest of the industry. WCN is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. WCN.CA Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 7.52% over the past year.
- The Earnings Per Share has been growing by 14.21% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 6.14% 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)7.52%
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
- WCN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.51% yearly.
- 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. WCN.CA Valuation Analysis
4.1 Price/Earnings Ratio
- WCN is valuated quite expensively with a Price/Earnings ratio of 33.52.
- Based on the Price/Earnings ratio, WCN is valued a bit cheaper than 66.67% of the companies in the same industry.
- WCN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.83.
- A Price/Forward Earnings ratio of 30.03 indicates a quite expensive valuation of WCN.
- WCN's Price/Forward Earnings is on the same level as the industry average.
- WCN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.52 | ||
| Fwd PE | 30.03 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.24 | ||
| EV/EBITDA | 17.26 |
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.
- The excellent profitability rating of WCN 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)2.89
PEG (5Y)2.36
EPS Next 2Y12.62%
EPS Next 3Y13.89%
5. WCN.CA Dividend Analysis
5.1 Amount
- WCN has a yearly dividend return of 0.81%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.06, WCN pays a bit more dividend than its industry peers.
- 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
- On average, the dividend of WCN grows each year by 11.37%, which is quite nice.
- WCN has been paying a dividend for at least 10 years, so it has a reliable track record.
- WCN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
- The dividend of WCN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.01%
EPS Next 2Y12.62%
EPS Next 3Y13.89%
WCN.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:WCN (3/3/2026, 7:00:00 PM)
235.98
-0.73 (-0.31%)
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 Cap60.42B
Revenue(TTM)9.47B
Net Income(TTM)1.08B
Analysts83
Price Target204.55 (-13.32%)
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 | 33.52 | ||
| Fwd PE | 30.03 | ||
| P/S | 4.67 | ||
| P/FCF | 36.24 | ||
| P/OCF | 18.31 | ||
| P/B | 5.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.26 |
EPS(TTM)7.04
EY2.98%
EPS(NY)7.86
Fwd EY3.33%
FCF(TTM)6.51
FCFY2.76%
OCF(TTM)12.89
OCFY5.46%
SpS50.55
BVpS44.03
TBVpS-11.5
PEG (NY)2.89
PEG (5Y)2.36
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 | 3.1 |
F-Score6
WACC8.04%
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 33.52 and the Price/Book (PB) ratio is 5.36.
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%.