WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WCN - CA94106B1013 - Common Stock
243.29 CAD
+0.03 (+0.01%)
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 scores excellent on profitability, but there are concerns on its financial health. WCN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WCN was profitable.
WCN had a positive operating cash flow in the past year.
In the past 5 years WCN has always been profitable.
Each year in the past 5 years WCN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WCN (2.99%) is better than 66.67% of its industry peers.
WCN's Return On Equity of 7.69% is fine compared to the rest of the industry. WCN outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.55%, WCN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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 6.19%.
The last Return On Invested Capital (7.55%) for WCN is above the 3 year average (7.10%), which is a sign of increasing profitability.
| 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
The Profit Margin of WCN (6.65%) is better than 79.17% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
WCN has a better Operating Margin (19.06%) 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 (42.10%) 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
WCN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WCN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, WCN has less shares outstanding
Compared to 1 year ago, WCN has a worse debt to assets ratio.
2.2 Solvency
WCN has an Altman-Z score of 3.19. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.19, WCN belongs to the best of the industry, outperforming 87.50% 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 62.50% of the companies in the same industry.
WCN has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
WCN has a Debt to Equity ratio (1.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.92
WACC8.22%
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.
WCN has a worse Current ratio (0.67) 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.
WCN's Quick ratio of 0.67 is on the low side compared to the rest of the industry. WCN is outperformed by 62.50% of its industry peers.
| 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 5.91%.
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%.
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)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.
WCN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.25% yearly.
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.
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. Valuation
4.1 Price/Earnings Ratio
WCN is valuated quite expensively with a Price/Earnings ratio of 35.41.
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 26.59, WCN is valued a bit more expensive.
The Price/Forward Earnings ratio is 30.88, which means the current valuation is very expensive for WCN.
WCN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, WCN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.41 | ||
| Fwd PE | 30.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WCN.
WCN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.87 | ||
| EV/EBITDA | 17.91 |
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)4.17
PEG (5Y)2.98
EPS Next 2Y9.63%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, WCN is not a good candidate for dividend investing.
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 1.87, 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 paid a dividend for at least 10 years, which is a reliable track record.
As WCN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)12.03%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
52.24% 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.
DP52.24%
EPS Next 2Y9.63%
EPS Next 3Y10.98%
TSX:WCN (12/24/2025, 7:00:00 PM)
243.29
+0.03 (+0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.17%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap62.29B
Revenue(TTM)9.35B
Net Income(TTM)622.05M
Analysts84.21
Price Target205.48 (-15.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend1.62
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)-28.68%
PT rev (3m)-28.09%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-1.36%
EPS NY rev (1m)0%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.41 | ||
| Fwd PE | 30.88 | ||
| P/S | 4.87 | ||
| P/FCF | 36.87 | ||
| P/OCF | 18.76 | ||
| P/B | 5.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.91 |
EPS(TTM)6.87
EY2.82%
EPS(NY)7.88
Fwd EY3.24%
FCF(TTM)6.6
FCFY2.71%
OCF(TTM)12.97
OCFY5.33%
SpS49.99
BVpS43.25
TBVpS-11.68
PEG (NY)4.17
PEG (5Y)2.98
Graham Number81.77
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 | 3.19 |
F-Score6
WACC8.22%
ROIC/WACC0.92
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 Year77.97%
EBIT Next 3Y27.39%
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%.