WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
Canada - TSX:WCN - CA94106B1013 - Common Stock
238.55 CAD
-3.85 (-1.59%)
Overall WCN gets a fundamental rating of 5 out of 10. We evaluated WCN against 24 industry peers in the Commercial Services & Supplies industry. WCN has an excellent profitability rating, but there are concerns on its financial health. WCN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
1.2 Ratios
WCN's Return On Assets of 3.11% is fine compared to the rest of the industry. WCN outperforms 79.17% of its industry peers.
Looking at the Return On Equity, with a value of 7.71%, WCN is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
WCN's Return On Invested Capital of 7.49% is amongst the best of 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 7.08%.
The last Return On Invested Capital (7.49%) for WCN is above the 3 year average (7.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 7.71% | ||
| ROIC | 7.49% |
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 6.97%. This is in the better half of the industry: WCN outperforms 75.00% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
WCN has a better Operating Margin (19.12%) than 95.83% of its industry peers.
In the last couple of years the Operating Margin of WCN has grown nicely.
WCN has a better Gross Margin (42.03%) than 75.00% of its industry peers.
WCN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.12% | ||
| PM (TTM) | 6.97% | ||
| GM | 42.03% |
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 about the same amout of shares outstanding than it did 1 year ago.
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.
2.2 Solvency
WCN has an Altman-Z score of 3.14. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.14, WCN is doing good in the industry, outperforming 79.17% of the companies in the same industry.
The Debt to FCF ratio of WCN is 7.32, which is on the high side as it means it would take WCN, 7.32 years of fcf income to pay off all of its debts.
WCN has a Debt to FCF ratio (7.32) which is in line with its industry peers.
A Debt/Equity ratio of 1.00 indicates that WCN is somewhat dependend on debt financing.
WCN has a Debt to Equity ratio (1.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.93
WACC8.08%
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 66.67% of its industry peers.
A Quick Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
With a Quick ratio value of 0.67, WCN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.11% 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.65%.
Measured over the past years, WCN shows a quite strong growth in Revenue. The Revenue has been growing by 10.60% on average per year.
EPS 1Y (TTM)8.11%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%4.03%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%7.07%
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 11.36% on average per year.
Based on estimates for the next years, WCN will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
EPS Next Y7.69%
EPS Next 2Y10.63%
EPS Next 3Y11.52%
EPS Next 5Y11.36%
Revenue Next Year6.34%
Revenue Next 2Y6.64%
Revenue Next 3Y6.78%
Revenue Next 5Y7.45%
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
Based on the Price/Earnings ratio of 34.47, the valuation of WCN can be described as expensive.
62.50% of the companies in the same industry are more expensive than WCN, based on the Price/Earnings ratio.
WCN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.53.
Based on the Price/Forward Earnings ratio of 28.97, 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.
The average S&P500 Price/Forward Earnings ratio is at 23.04. WCN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 28.97 |
4.2 Price Multiples
WCN's Enterprise Value to EBITDA is on the same level as 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 | 38.29 | ||
| EV/EBITDA | 17.43 |
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.
The decent profitability rating of WCN may justify a higher PE ratio.
PEG (NY)4.48
PEG (5Y)2.9
EPS Next 2Y10.63%
EPS Next 3Y11.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, WCN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.38, WCN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.76, WCN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
49.38% of the earnings are spent on dividend by WCN. 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.
DP49.38%
EPS Next 2Y10.63%
EPS Next 3Y11.52%
TSX:WCN (10/15/2025, 7:00:00 PM)
238.55
-3.85 (-1.59%)
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 Cap61.33B
Analysts82.22
Price Target283.53 (18.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.64
Dividend Growth(5Y)12.03%
DP49.38%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.89%
Min EPS beat(2)1.76%
Max EPS beat(2)2.03%
EPS beat(4)3
Avg EPS beat(4)0.3%
Min EPS beat(4)-5.03%
Max EPS beat(4)2.46%
EPS beat(8)7
Avg EPS beat(8)1.43%
EPS beat(12)9
Avg EPS beat(12)1.43%
EPS beat(16)12
Avg EPS beat(16)1.43%
Revenue beat(2)0
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)0.84%
Revenue beat(8)2
Avg Revenue beat(8)-0.22%
Revenue beat(12)3
Avg Revenue beat(12)-0.28%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)-0.77%
PT rev (3m)-0.51%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-5.96%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-3.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 28.97 | ||
| P/S | 4.73 | ||
| P/FCF | 38.29 | ||
| P/OCF | 18.93 | ||
| P/B | 5.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.43 |
EPS(TTM)6.92
EY2.9%
EPS(NY)8.23
Fwd EY3.45%
FCF(TTM)6.23
FCFY2.61%
OCF(TTM)12.6
OCFY5.28%
SpS50.44
BVpS45.63
TBVpS-10.54
PEG (NY)4.48
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 7.71% | ||
| ROCE | 9.45% | ||
| ROIC | 7.49% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 16.88% | ||
| OM | 19.12% | ||
| PM (TTM) | 6.97% | ||
| GM | 42.03% | ||
| FCFM | 12.35% |
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%
ROICexcg growth 3Y4.71%
ROICexcg 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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 96.17% | ||
| Cap/Sales | 12.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.45% | ||
| Profit Quality | 177.13% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.14 |
F-Score5
WACC8.08%
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)8.11%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%4.03%
EPS Next Y7.69%
EPS Next 2Y10.63%
EPS Next 3Y11.52%
EPS Next 5Y11.36%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%7.07%
Revenue Next Year6.34%
Revenue Next 2Y6.64%
Revenue Next 3Y6.78%
Revenue Next 5Y7.45%
EBIT growth 1Y8.5%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year78.14%
EBIT Next 3Y28.33%
EBIT Next 5Y19.99%
FCF growth 1Y0.91%
FCF growth 3Y7.13%
FCF growth 5Y6.05%
OCF growth 1Y11.69%
OCF growth 3Y9.49%
OCF growth 5Y7.67%