WASTE CONNECTIONS INC (WCN.CA) Fundamental Analysis & Valuation

TSX:WCN • CA94106B1013

Current stock price

215.83 CAD
-2.34 (-1.07%)
Last:

This WCN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. WCN.CA Profitability Analysis

1.1 Basic Checks

  • In the past year WCN was profitable.
  • In the past year WCN had a positive cash flow from operations.
  • 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.
WCN.CA Yearly Net Income VS EBIT VS OCF VS FCFWCN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

1.2 Ratios

  • WCN has a Return On Assets of 5.10%. This is amongst the best in the industry. WCN outperforms 82.61% of its industry peers.
  • Looking at the Return On Equity, with a value of 13.06%, WCN is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 7.60%, WCN belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
  • WCN had an Average Return On Invested Capital over the past 3 years of 7.41%. This is in line with the industry average of 6.33%.
  • The 3 year average ROIC (7.41%) for WCN is below the current ROIC(7.60%), indicating increased profibility in the last year.
Industry RankSector 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%
WCN.CA Yearly ROA, ROE, ROICWCN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • WCN has a Profit Margin of 11.37%. This is amongst the best in the industry. WCN outperforms 86.96% of its industry peers.
  • WCN's Profit Margin has improved in the last couple of years.
  • WCN has a better Operating Margin (19.48%) than 95.65% of its industry peers.
  • In the last couple of years the Operating Margin of WCN has grown nicely.
  • WCN's Gross Margin of 42.37% is fine compared to the rest 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 RankSector 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%
WCN.CA Yearly Profit, Operating, Gross MarginsWCN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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3

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.
  • Compared to 1 year ago, WCN has less shares outstanding
  • The number of shares outstanding for WCN has been reduced compared to 5 years ago.
  • The debt/assets ratio for WCN is higher compared to a year ago.
WCN.CA Yearly Shares OutstandingWCN.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
WCN.CA Yearly Total Debt VS Total AssetsWCN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • An Altman-Z score of 2.91 indicates that WCN is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.91, WCN belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
  • 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.
  • WCN's Debt to FCF ratio of 7.23 is fine compared to the rest of the industry. WCN outperforms 65.22% of its industry peers.
  • WCN has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.07, WCN perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 7.23
Altman-Z 2.91
ROIC/WACC0.88
WACC8.66%
WCN.CA Yearly LT Debt VS Equity VS FCFWCN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • WCN has a Current 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 has a worse Current ratio (0.62) than 65.22% of its industry peers.
  • A Quick Ratio of 0.58 indicates that WCN may have some problems paying its short term obligations.
  • The Quick ratio of WCN (0.58) is worse than 73.91% of its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.58
WCN.CA Yearly Current Assets VS Current LiabilitesWCN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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4

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.
  • 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 9.22% on average per year.
  • WCN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y6.88%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
EPS Next 5Y9.22%
Revenue Next Year5.17%
Revenue Next 2Y5.67%
Revenue Next 3Y6.04%
Revenue Next 5Y5.74%

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 decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WCN.CA Yearly Revenue VS EstimatesWCN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
WCN.CA Yearly EPS VS EstimatesWCN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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4

4. WCN.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 30.70, 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.
  • WCN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.71.
  • With a Price/Forward Earnings ratio of 28.71, WCN can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WCN is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of WCN to the average of the S&P500 Index (38.09), we can say WCN is valued slightly cheaper.
Industry RankSector Rank
PE 30.7
Fwd PE 28.71
WCN.CA Price Earnings VS Forward Price EarningsWCN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as WCN.
  • Based on the Price/Free Cash Flow ratio, WCN is valued a bit cheaper than 60.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF 33.02
EV/EBITDA 15.95
WCN.CA Per share dataWCN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

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)4.47
PEG (5Y)2.16
EPS Next 2Y10.67%
EPS Next 3Y11.45%

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5

5. WCN.CA Dividend Analysis

5.1 Amount

  • WCN has a yearly dividend return of 0.83%, which is pretty low.
  • WCN's Dividend Yield is a higher than the industry average which is at 1.09.
  • Compared to an average S&P500 Dividend Yield of 1.81, WCN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.83%

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 Years8
Div Non Decr Years8
WCN.CA Yearly Dividends per shareWCN.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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 2Y10.67%
EPS Next 3Y11.45%
WCN.CA Yearly Income VS Free CF VS DividendWCN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
WCN.CA Dividend Payout.WCN.CA Dividend Payout, showing the Payout Ratio.WCN.CA Dividend Payout.PayoutRetained Earnings

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WCN.CA Fundamentals: All Metrics, Ratios and Statistics

WASTE CONNECTIONS INC

TSX:WCN (4/21/2026, 7:00:00 PM)

215.83

-2.34 (-1.07%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-11
Earnings (Next)04-22
Inst Owners90.16%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap55.00B
Revenue(TTM)9.47B
Net Income(TTM)1.08B
Analysts83
Price Target278.88 (29.21%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.83%
Yearly Dividend1.78
Dividend Growth(5Y)11.37%
DP31.01%
Div Incr Years8
Div Non Decr Years8
Ex-Date02-25
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)36.34%
PT rev (3m)35.73%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-5.36%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-4.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.6%
Valuation
Industry RankSector Rank
PE 30.7
Fwd PE 28.71
P/S 4.25
P/FCF 33.02
P/OCF 16.68
P/B 4.88
P/tB N/A
EV/EBITDA 15.95
EPS(TTM)7.03
EY3.26%
EPS(NY)7.52
Fwd EY3.48%
FCF(TTM)6.54
FCFY3.03%
OCF(TTM)12.94
OCFY5.99%
SpS50.73
BVpS44.19
TBVpS-11.54
PEG (NY)4.47
PEG (5Y)2.16
Graham Number83.6001 (-61.27%)
Profitability
Industry RankSector 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 RankSector 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 2.91
F-Score6
WACC8.66%
ROIC/WACC0.88
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 Y6.88%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
EPS Next 5Y9.22%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%5%
Revenue Next Year5.17%
Revenue Next 2Y5.67%
Revenue Next 3Y6.04%
Revenue Next 5Y5.74%
EBIT growth 1Y8.05%
EBIT growth 3Y12.78%
EBIT growth 5Y15.71%
EBIT Next Year80.5%
EBIT Next 3Y28.36%
EBIT Next 5Y19.08%
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 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 31.01%.