WASTE CONNECTIONS INC (WCN.CA) Fundamental Analysis & Valuation
TSX:WCN • CA94106B1013
Current stock price
213.71 CAD
-2.12 (-0.98%)
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.
- WCN had a positive operating cash flow in the past year.
- 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 has a Return On Assets of 5.10%. This is amongst the best in the industry. WCN outperforms 82.61% of its industry peers.
- With a decent Return On Equity value of 13.06%, WCN is doing good in the industry, outperforming 78.26% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.60%, WCN belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
- WCN had an Average Return On Invested Capital over the past 3 years of 7.41%. This is in line with the industry average of 6.33%.
- 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
- WCN has a better Profit Margin (11.37%) than 86.96% of its industry peers.
- In the last couple of years the Profit Margin of WCN has grown nicely.
- WCN has a Operating Margin of 19.48%. This is amongst the best in the industry. WCN outperforms 95.65% of its industry peers.
- WCN's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 42.37%, WCN is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
- WCN's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 1 year ago, WCN has a worse debt to assets ratio.
2.2 Solvency
- WCN has an Altman-Z score of 2.89. This is not the best score and indicates that WCN is in the grey zone with still 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.
- WCN has a better Debt to FCF ratio (7.23) 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.
- 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 | 7.23 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.88
WACC8.67%
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 Current ratio of 0.62. This is in the lower half of the industry: WCN underperforms 65.22% of its industry peers.
- WCN has a Quick 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 Quick ratio of 0.58. This is in the lower half of the industry: WCN underperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. WCN.CA Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 7.58% 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 14.21% yearly.
- Looking at the last year, WCN shows a small growth in Revenue. The Revenue has grown by 6.14% in the last year.
- WCN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.69% yearly.
EPS 1Y (TTM)7.58%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%8.85%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%6.39%
3.2 Future
- The Earnings Per Share is expected to grow by 9.22% on average over the next years. This is quite good.
- 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 Y6.88%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
EPS Next 5Y9.22%
Revenue Next Year5.17%
Revenue Next 2Y5.67%
Revenue Next 3Y6.04%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. WCN.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 29.81, WCN can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, WCN is valued a bit cheaper than 65.22% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.47. WCN is around the same levels.
- WCN is valuated rather expensively with a Price/Forward Earnings ratio of 24.79.
- WCN's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 22.62. WCN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.81 | ||
| Fwd PE | 24.79 |
4.2 Price Multiples
- WCN's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, WCN is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.68 | ||
| EV/EBITDA | 15.81 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- WCN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.34
PEG (5Y)2.1
EPS Next 2Y10.67%
EPS Next 3Y11.45%
5. WCN.CA Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.83%, WCN is not a good candidate for dividend investing.
- WCN's Dividend Yield is a higher than the industry average which is at 1.09.
- With a Dividend Yield of 0.83, WCN pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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.
- As WCN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.37%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
- 31.01% of the earnings are spent on dividend by WCN. This is a low number and 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 2Y10.67%
EPS Next 3Y11.45%
WCN.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:WCN (4/22/2026, 7:00:00 PM)
213.71
-2.12 (-0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)04-22 2026-04-22/amc
Earnings (Next)N/A N/A
Inst Owners90.16%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap54.46B
Revenue(TTM)9.47B
Net Income(TTM)1.08B
Analysts83
Price Target278.88 (30.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend1.78
Dividend Growth(5Y)11.37%
DP31.01%
Div Incr Years8
Div Non Decr Years8
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)36.34%
PT rev (3m)35.73%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-5.36%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-4.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.81 | ||
| Fwd PE | 24.79 | ||
| P/S | 4.21 | ||
| P/FCF | 32.68 | ||
| P/OCF | 16.51 | ||
| P/B | 4.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.81 |
EPS(TTM)7.17
EY3.36%
EPS(NY)8.62
Fwd EY4.03%
FCF(TTM)6.54
FCFY3.06%
OCF(TTM)12.94
OCFY6.06%
SpS50.76
BVpS44.21
TBVpS-11.55
PEG (NY)4.34
PEG (5Y)2.1
Graham Number84.456 (-60.48%)
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
WACC8.67%
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)7.58%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%8.85%
EPS Next Y6.88%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
EPS Next 5Y9.22%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%6.39%
Revenue Next Year5.17%
Revenue Next 2Y5.67%
Revenue Next 3Y6.04%
Revenue Next 5Y5.74%
EBIT growth 1Y8.05%
EBIT growth 3Y12.78%
EBIT growth 5Y15.71%
EBIT Next Year80.5%
EBIT Next 3Y28.36%
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 4 / 10 to WASTE CONNECTIONS INC (WCN.CA). This can be considered as Fairly Valued.
How profitable is WASTE CONNECTIONS INC (WCN.CA) stock?
WASTE CONNECTIONS INC (WCN.CA) has a profitability rating of 8 / 10.
How financially healthy is WASTE CONNECTIONS INC?
The financial health rating of WASTE CONNECTIONS INC (WCN.CA) is 3 / 10.
How sustainable is the dividend of WASTE CONNECTIONS INC (WCN.CA) stock?
The dividend rating of WASTE CONNECTIONS INC (WCN.CA) is 5 / 10 and the dividend payout ratio is 31.01%.