WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
TSX:WCN • CA94106B1013
234.73 CAD
+3.05 (+1.32%)
Last: Feb 27, 2026, 07:00 PM
WCN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 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. WCN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year WCN was profitable.
- WCN had a positive operating cash flow in the past year.
- Of the past 5 years WCN 4 years were profitable.
- WCN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 2.99%, WCN is doing good in the industry, outperforming 68.00% of the companies in the same industry.
- With a decent Return On Equity value of 7.69%, WCN is doing good in the industry, outperforming 68.00% of the companies in the same industry.
- WCN has a better Return On Invested Capital (7.55%) than 84.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WCN is in line with the industry average of 5.81%.
- 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 has a better Profit Margin (6.65%) than 80.00% of its industry peers.
- In the last couple of years the Profit Margin of WCN has declined.
- WCN's Operating Margin of 19.06% is amongst the best of the industry. WCN outperforms 96.00% of its industry peers.
- WCN's Operating Margin has improved in the last couple of years.
- The Gross Margin of WCN (42.10%) is better than 80.00% 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.
- WCN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 3.08 indicates that WCN is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.08, WCN belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
- The Debt to FCF ratio of WCN is 6.99, which is on the high side as it means it would take WCN, 6.99 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.99, WCN is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.07 is on the high side and indicates that WCN has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.07, WCN perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.94
WACC8.06%
2.3 Liquidity
- A Current Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
- WCN has a worse Current ratio (0.67) than 68.00% of its industry peers.
- A Quick Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.67, WCN is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- WCN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.52%.
- WCN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.21% yearly.
EPS 1Y (TTM)7.52%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%11.21%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
- WCN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.26% yearly.
EPS Next Y11.61%
EPS Next 2Y12.62%
EPS Next 3Y13.89%
EPS Next 5Y8.51%
Revenue Next Year5.78%
Revenue Next 2Y6.14%
Revenue Next 3Y7.08%
Revenue Next 5Y6.26%
3.3 Evolution
- The EPS 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
- Based on the Price/Earnings ratio of 33.34, 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 68.00% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.10. WCN is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 29.86, which means the current valuation is very expensive for WCN.
- WCN's Price/Forward Earnings ratio is in line with the industry average.
- WCN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.34 | ||
| Fwd PE | 29.86 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WCN.
- 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 | 35.6 | ||
| EV/EBITDA | 17.19 |
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.
- WCN's earnings are expected to grow with 13.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.87
PEG (5Y)2.35
EPS Next 2Y12.62%
EPS Next 3Y13.89%
5. Dividend
5.1 Amount
- WCN has a yearly dividend return of 0.81%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.02, WCN pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.80, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
- The dividend of WCN is nicely growing with an annual growth rate of 12.03%!
- 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)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.
- WCN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.24%
EPS Next 2Y12.62%
EPS Next 3Y13.89%
TSX:WCN (2/27/2026, 7:00:00 PM)
234.73
+3.05 (+1.32%)
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 Cap60.10B
Revenue(TTM)N/A
Net Income(TTM)622.05M
Analysts83
Price Target208.33 (-11.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.6
Dividend Growth(5Y)12.03%
DP52.24%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
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)1.39%
PT rev (3m)-27.69%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.34 | ||
| Fwd PE | 29.86 | ||
| P/S | 4.7 | ||
| P/FCF | 35.6 | ||
| P/OCF | 18.11 | ||
| P/B | 5.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.19 |
EPS(TTM)7.04
EY3%
EPS(NY)7.86
Fwd EY3.35%
FCF(TTM)6.59
FCFY2.81%
OCF(TTM)12.96
OCFY5.52%
SpS49.96
BVpS43.23
TBVpS-11.67
PEG (NY)2.87
PEG (5Y)2.35
Graham Number82.75
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 | 3.08 |
F-Score6
WACC8.06%
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)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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5%
Revenue Next Year5.78%
Revenue Next 2Y6.14%
Revenue Next 3Y7.08%
Revenue Next 5Y6.26%
EBIT growth 1Y4.81%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year77.97%
EBIT Next 3Y27.4%
EBIT Next 5Y19.26%
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 4 / 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 7 / 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 33.34 and the Price/Book (PB) ratio is 5.43.
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 52.24%.