WASTE CONNECTIONS INC (WCN.CA) Fundamental Analysis & Valuation
TSX:WCN • CA94106B1013
Current stock price
216.7 CAD
-1.06 (-0.49%)
Last:
This WCN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.10%, WCN belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
- The Return On Equity of WCN (13.06%) is better than 78.26% of its industry peers.
- WCN has a better Return On Invested Capital (7.60%) than 82.61% 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 6.08%.
- The 3 year average ROIC (7.41%) for WCN is below the current ROIC(7.60%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 11.37%, WCN belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- WCN's Profit Margin has improved in the last couple of years.
- WCN's Operating Margin of 19.48% is amongst the best of the industry. WCN outperforms 95.65% of its industry peers.
- WCN's Operating Margin has improved in the last couple of years.
- WCN has a better Gross Margin (42.37%) than 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 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.
- Compared to 1 year ago, WCN has less shares outstanding
- WCN has less shares outstanding than it did 5 years ago.
- WCN has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.89 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 2.89, 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.
- The Debt to FCF ratio of WCN (7.23) is better than 65.22% 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.
- 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 | 2.89 |
ROIC/WACC0.88
WACC8.68%
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.
- WCN has a worse Quick ratio (0.58) than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. WCN.CA Growth Analysis
3.1 Past
- WCN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.52%.
- Measured over the past years, WCN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.21% on average per year.
- WCN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.14%.
- Measured over the past years, WCN shows a quite strong growth in Revenue. The Revenue has been growing by 11.69% on average per year.
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.
- Based on estimates for the next years, WCN will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
EPS Next Y6.56%
EPS Next 2Y10.82%
EPS Next 3Y11.2%
EPS Next 5Y9.22%
Revenue Next Year5.2%
Revenue Next 2Y5.67%
Revenue Next 3Y5.81%
Revenue Next 5Y5.74%
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
- With a Price/Earnings ratio of 30.35, WCN can be considered very expensive at the moment.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 24.89, WCN is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 28.47, the valuation of WCN can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WCN is on the same level as its industry peers.
- WCN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 28.47 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.75 | ||
| EV/EBITDA | 15.84 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.63
PEG (5Y)2.14
EPS Next 2Y10.82%
EPS Next 3Y11.2%
5. WCN.CA Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.81%, WCN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.15, WCN pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.89, 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 paid a dividend for at least 10 years, which is 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 2Y10.82%
EPS Next 3Y11.2%
WCN.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:WCN (3/27/2026, 7:00:00 PM)
216.7
-1.06 (-0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-11 2026-02-11/amc
Earnings (Next)04-22 2026-04-22/amc
Inst Owners90.22%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap55.41B
Revenue(TTM)9.47B
Net Income(TTM)1.08B
Analysts83
Price Target278.88 (28.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.8
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)33.86%
PT rev (3m)35.73%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-4.93%
EPS NY rev (1m)-4.52%
EPS NY rev (3m)-4.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 28.47 | ||
| P/S | 4.22 | ||
| P/FCF | 32.75 | ||
| P/OCF | 16.55 | ||
| P/B | 4.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.84 |
EPS(TTM)7.14
EY3.29%
EPS(NY)7.61
Fwd EY3.51%
FCF(TTM)6.62
FCFY3.05%
OCF(TTM)13.1
OCFY6.04%
SpS51.36
BVpS44.73
TBVpS-11.68
PEG (NY)4.63
PEG (5Y)2.14
Graham Number84.77
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 | 2.89 |
F-Score6
WACC8.68%
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 Y6.56%
EPS Next 2Y10.82%
EPS Next 3Y11.2%
EPS Next 5Y9.22%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%5%
Revenue Next Year5.2%
Revenue Next 2Y5.67%
Revenue Next 3Y5.81%
Revenue Next 5Y5.74%
EBIT growth 1Y8.05%
EBIT growth 3Y12.78%
EBIT growth 5Y15.71%
EBIT Next Year80.66%
EBIT Next 3Y28.11%
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 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 30.35 and the Price/Book (PB) ratio is 4.84.
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%.