WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WCN - CA94106B1013 - Common Stock
248.52 CAD
+0.06 (+0.02%)
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 belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, WCN is valued expensive at the moment.
1. Profitability
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
Looking at the Return On Assets, with a value of 2.99%, WCN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
WCN has a better Return On Equity (7.69%) than 66.67% of its industry peers.
WCN has a Return On Invested Capital of 7.55%. This is amongst the best in 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 6.91%.
The 3 year average ROIC (7.10%) for WCN is below the current ROIC(7.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 7.69% | ||
| ROIC | 7.55% |
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 6.65% is fine compared to the rest of the industry. WCN outperforms 75.00% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
The Operating Margin of WCN (19.06%) is better than 95.83% of its industry peers.
WCN's Operating Margin has improved in the last couple of years.
WCN has a Gross Margin of 42.10%. This is in the better half of the industry: WCN outperforms 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 | 19.06% | ||
| PM (TTM) | 6.65% | ||
| GM | 42.1% |
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.
Compared to 5 years ago, WCN has less shares outstanding
Compared to 1 year ago, WCN has a worse debt to assets ratio.
2.2 Solvency
WCN has an Altman-Z score of 3.18. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.18, WCN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
WCN has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as WCN would need 6.99 years to pay back of all of its debts.
WCN has a better Debt to FCF ratio (6.99) 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.
Looking at the Debt to Equity ratio, with a value of 1.07, WCN is in line with its industry, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.94
WACC8.07%
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.
WCN's Current ratio of 0.67 is on the low side compared to the rest of the industry. WCN is outperformed by 75.00% of its industry peers.
WCN has a Quick 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.
WCN has a Quick ratio of 0.67. This is in the lower half of the industry: WCN underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.91% 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 11.90% yearly.
WCN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.58%.
WCN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.60% yearly.
EPS 1Y (TTM)5.91%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%6.67%
Revenue 1Y (TTM)7.58%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%5.13%
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 11.68% yearly.
Based on estimates for the next years, WCN will show a small growth in Revenue. The Revenue will grow by 7.25% on average per year.
EPS Next Y8.5%
EPS Next 2Y9.63%
EPS Next 3Y10.98%
EPS Next 5Y11.68%
Revenue Next Year6.33%
Revenue Next 2Y6.07%
Revenue Next 3Y6.2%
Revenue Next 5Y7.25%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 35.15, which means the current valuation is very expensive for WCN.
Compared to the rest of the industry, the Price/Earnings ratio of WCN is on the same level as its industry peers.
WCN is valuated rather expensively when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 30.64, which means the current valuation is very expensive for WCN.
The rest of the industry has a similar Price/Forward Earnings ratio as WCN.
When comparing the Price/Forward Earnings ratio of WCN to the average of the S&P500 Index (36.12), we can say WCN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.15 | ||
| Fwd PE | 30.64 |
4.2 Price Multiples
WCN's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WCN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.74 | ||
| EV/EBITDA | 17.85 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.14
PEG (5Y)2.95
EPS Next 2Y9.63%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
WCN has a yearly dividend return of 0.77%, which is pretty low.
WCN's Dividend Yield is a higher than the industry average which is at 2.39.
With a Dividend Yield of 0.77, WCN pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
On average, the dividend of WCN grows each year by 12.03%, 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)12.03%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
WCN pays out 52.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of WCN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.24%
EPS Next 2Y9.63%
EPS Next 3Y10.98%
TSX:WCN (11/27/2025, 7:00:00 PM)
248.52
+0.06 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.89%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap63.90B
Revenue(TTM)9.35B
Net Income(TTM)622.05M
Analysts84.21
Price Target288.12 (15.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend1.65
Dividend Growth(5Y)12.03%
DP52.24%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.57%
Min EPS beat(2)2.03%
Max EPS beat(2)3.11%
EPS beat(4)3
Avg EPS beat(4)0.47%
Min EPS beat(4)-5.03%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)1.66%
EPS beat(12)9
Avg EPS beat(12)1.16%
EPS beat(16)12
Avg EPS beat(16)1.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)-0.25%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)3
Avg Revenue beat(12)-0.28%
Revenue beat(16)6
Avg Revenue beat(16)-0.06%
PT rev (1m)1.62%
PT rev (3m)0.84%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0.75%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.15 | ||
| Fwd PE | 30.64 | ||
| P/S | 4.85 | ||
| P/FCF | 36.74 | ||
| P/OCF | 18.7 | ||
| P/B | 5.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.85 |
EPS(TTM)7.07
EY2.84%
EPS(NY)8.11
Fwd EY3.26%
FCF(TTM)6.76
FCFY2.72%
OCF(TTM)13.29
OCFY5.35%
SpS51.25
BVpS44.34
TBVpS-11.98
PEG (NY)4.14
PEG (5Y)2.95
Graham Number83.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 7.69% | ||
| ROCE | 9.54% | ||
| ROIC | 7.55% | ||
| ROICexc | 7.6% | ||
| ROICexgc | 17.01% | ||
| OM | 19.06% | ||
| PM (TTM) | 6.65% | ||
| GM | 42.1% | ||
| FCFM | 13.2% |
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%
ROICexgc growth 3Y4.71%
ROICexgc 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-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 96.51% | ||
| Cap/Sales | 12.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.4% | ||
| Profit Quality | 198.46% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.18 |
F-Score6
WACC8.07%
ROIC/WACC0.94
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)5.91%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%6.67%
EPS Next Y8.5%
EPS Next 2Y9.63%
EPS Next 3Y10.98%
EPS Next 5Y11.68%
Revenue 1Y (TTM)7.58%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%5.13%
Revenue Next Year6.33%
Revenue Next 2Y6.07%
Revenue Next 3Y6.2%
Revenue Next 5Y7.25%
EBIT growth 1Y4.81%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year78.14%
EBIT Next 3Y28.33%
EBIT Next 5Y19.66%
FCF growth 1Y4.33%
FCF growth 3Y7.13%
FCF growth 5Y6.05%
OCF growth 1Y15.9%
OCF growth 3Y9.49%
OCF growth 5Y7.67%
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.
Can you provide the valuation status for WASTE CONNECTIONS INC?
ChartMill assigns a valuation rating of 2 / 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 7 / 10.
What is the financial health of WASTE CONNECTIONS INC (WCN.CA) stock?
The financial health rating of WASTE CONNECTIONS INC (WCN.CA) is 3 / 10.
Is the dividend of WASTE CONNECTIONS INC sustainable?
The dividend rating of WASTE CONNECTIONS INC (WCN.CA) is 5 / 10 and the dividend payout ratio is 52.24%.