WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WCN - CA94106B1013 - Common Stock
241.9 CAD
-1.25 (-0.51%)
We assign a fundamental rating of 5 out of 10 to WCN. WCN was compared to 24 industry peers in the Commercial Services & Supplies industry. While WCN has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, WCN is valued expensive at the moment.
1. Profitability
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
With a decent Return On Assets value of 2.99%, WCN is doing good in the industry, outperforming 66.67% 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 66.67% of the companies in the same industry.
The Return On Invested Capital of WCN (7.55%) is better than 83.33% of its industry peers.
WCN had an Average Return On Invested Capital over the past 3 years of 7.10%. This is in line with the industry average of 6.20%.
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 Profit Margin of 6.65%. This is in the better half of the industry: WCN outperforms 79.17% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.06%, WCN belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
In the last couple of years the Operating Margin of WCN has grown nicely.
WCN has a better Gross Margin (42.10%) than 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WCN is destroying value.
The number of shares outstanding for WCN remains at a similar level compared to 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 3.13 indicates that WCN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.13, 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 Debt to FCF ratio of 6.99. This is in the better half of the industry: WCN outperforms 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.
The Debt to Equity ratio of WCN (1.07) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.93
WACC8.16%
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.
The Current ratio of WCN (0.67) is worse than 70.83% 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.
The Quick ratio of WCN (0.67) is worse than 62.50% 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.
Measured over the past years, WCN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.90% on average per year.
WCN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.58%.
The Revenue has been growing by 10.60% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 7.25% on average over the next years.
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
WCN is valuated quite expensively with a Price/Earnings ratio of 34.51.
Compared to the rest of the industry, the Price/Earnings ratio of WCN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.46, WCN is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 30.07, the valuation of WCN can be described as expensive.
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 (36.10), we can say WCN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.51 | ||
| Fwd PE | 30.07 |
4.2 Price Multiples
WCN's Enterprise Value to EBITDA is on the same level as the industry average.
WCN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.91 | ||
| EV/EBITDA | 17.51 |
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.
PEG (NY)4.06
PEG (5Y)2.9
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.
Compared to an average industry Dividend Yield of 2.25, WCN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, WCN's dividend is way lower than the S&P500 average.
| 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 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 2Y9.63%
EPS Next 3Y10.98%
TSX:WCN (12/4/2025, 7:00:00 PM)
241.9
-1.25 (-0.51%)
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 Cap61.93B
Revenue(TTM)9.35B
Net Income(TTM)622.05M
Analysts84.21
Price Target288.12 (19.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend1.64
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)0.03%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0.75%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.51 | ||
| Fwd PE | 30.07 | ||
| P/S | 4.74 | ||
| P/FCF | 35.91 | ||
| P/OCF | 18.27 | ||
| P/B | 5.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.51 |
EPS(TTM)7.01
EY2.9%
EPS(NY)8.04
Fwd EY3.33%
FCF(TTM)6.74
FCFY2.78%
OCF(TTM)13.24
OCFY5.47%
SpS51.05
BVpS44.17
TBVpS-11.93
PEG (NY)4.06
PEG (5Y)2.9
Graham Number83.46
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 | 3.13 |
F-Score6
WACC8.16%
ROIC/WACC0.93
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%.