WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WCN - CA94106B1013 - Common Stock
233.25 CAD
-0.22 (-0.09%)
WCN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 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. 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
Looking at the Return On Assets, with a value of 2.99%, WCN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
WCN has a Return On Equity of 7.69%. This is in the better half of the industry: WCN outperforms 66.67% of its industry peers.
WCN has a better Return On Invested Capital (7.55%) than 83.33% 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 Profit Margin of 6.65%. This is in the better half of the industry: WCN outperforms 79.17% 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 95.83% 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 79.17% of its industry peers.
WCN's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, WCN has about the same amount of shares outstanding.
The number of shares outstanding for WCN has been reduced compared to 5 years ago.
WCN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.07 indicates that WCN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.07, 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's Debt to FCF ratio of 6.99 is fine compared to the rest 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.
With a Debt to Equity ratio value of 1.07, WCN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.92
WACC8.21%
2.3 Liquidity
A Current Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
The Current ratio of WCN (0.67) is worse than 70.83% of its industry peers.
A Quick Ratio of 0.67 indicates that WCN may have some problems paying 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.
WCN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.90% yearly.
WCN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.58%.
WCN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.60% yearly.
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
The Earnings Per Share is expected to grow by 11.68% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.25% on average over the next years.
EPS Next Y8.43%
EPS Next 2Y9.61%
EPS Next 3Y11.01%
EPS Next 5Y11.68%
Revenue Next Year6.33%
Revenue Next 2Y6.05%
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
The Price/Earnings ratio is 33.51, which means the current valuation is very expensive for WCN.
WCN's Price/Earnings ratio is a bit cheaper when compared to the industry. WCN is cheaper than 62.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of WCN to the average of the S&P500 Index (27.00), we can say WCN is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 29.24, the valuation of WCN can be described as expensive.
WCN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WCN to the average of the S&P500 Index (23.70), we can say WCN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.51 | ||
| Fwd PE | 29.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WCN is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as WCN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.9 | ||
| EV/EBITDA | 17.1 |
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)3.97
PEG (5Y)2.82
EPS Next 2Y9.61%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
WCN has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 1.04, WCN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, WCN's dividend is way lower than the S&P500 average.
| 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
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 2Y9.61%
EPS Next 3Y11.01%
TSX:WCN (1/8/2026, 7:00:00 PM)
233.25
-0.22 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.12%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap59.72B
Revenue(TTM)9.35B
Net Income(TTM)622.05M
Analysts84.21
Price Target205.48 (-11.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.61
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)-28.68%
PT rev (3m)-27.53%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-1.11%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.51 | ||
| Fwd PE | 29.24 | ||
| P/S | 4.61 | ||
| P/FCF | 34.9 | ||
| P/OCF | 17.76 | ||
| P/B | 5.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.1 |
EPS(TTM)6.96
EY2.98%
EPS(NY)7.98
Fwd EY3.42%
FCF(TTM)6.68
FCFY2.87%
OCF(TTM)13.14
OCFY5.63%
SpS50.64
BVpS43.82
TBVpS-11.83
PEG (NY)3.97
PEG (5Y)2.82
Graham Number82.84
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 | 3.07 |
F-Score6
WACC8.21%
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 Y8.43%
EPS Next 2Y9.61%
EPS Next 3Y11.01%
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 2Y6.05%
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 3Y27.4%
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.
What is the valuation status of WASTE CONNECTIONS INC (WCN.CA) stock?
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 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 33.51 and the Price/Book (PB) ratio is 5.32.
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%.