WASTE CONNECTIONS INC (WCN.CA) Fundamental Analysis & Valuation
TSX:WCN • CA94106B1013
Current stock price
228.56 CAD
+1.05 (+0.46%)
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.
- WCN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WCN has a Return On Assets of 5.10%. This is amongst the best in the industry. WCN outperforms 83.33% of its industry peers.
- WCN has a better Return On Equity (13.06%) than 79.17% of its industry peers.
- With an excellent Return On Invested Capital value of 7.60%, WCN belongs to the best 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 7.41%. This is in line with the industry average of 5.84%.
- 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 Profit Margin of 11.37%. This is amongst the best in the industry. WCN outperforms 87.50% of its industry peers.
- WCN's Profit Margin has improved in the last couple of years.
- WCN has a Operating Margin of 19.48%. This is amongst the best in 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 (42.37%) 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 | 19.48% | ||
| 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
- WCN has an Altman-Z score of 3.03. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
- WCN has a Altman-Z score of 3.03. This is amongst the best in the industry. WCN outperforms 83.33% of its industry peers.
- The Debt to FCF ratio of WCN is 7.23, which is on the high side as it means it would take WCN, 7.23 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.23, WCN is in the better half of the industry, outperforming 66.67% 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.
- 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 | 3.03 |
ROIC/WACC0.93
WACC8.2%
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's Current ratio of 0.62 is on the low side compared to the rest of the industry. WCN is outperformed by 66.67% 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 Quick ratio of 0.58. This is in the lower half of the industry: WCN underperforms 66.67% 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.
- Looking at the last year, WCN shows a small growth in Revenue. The Revenue has grown by 6.14% in the last year.
- The Revenue has been growing by 11.69% on average over the past years. This is quite good.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- Based on the Price/Earnings ratio of 32.65, the valuation of WCN can be described as expensive.
- 66.67% of the companies in the same industry are more expensive than WCN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 25.70, WCN is valued a bit more expensive.
- A Price/Forward Earnings ratio of 30.62 indicates a quite expensive valuation of WCN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WCN is on the same level as its industry peers.
- WCN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.65 | ||
| Fwd PE | 30.62 |
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 | 35.22 | ||
| EV/EBITDA | 16.75 |
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 excellent profitability rating of WCN may justify a higher PE ratio.
PEG (NY)4.98
PEG (5Y)2.3
EPS Next 2Y10.82%
EPS Next 3Y11.2%
5. WCN.CA Dividend Analysis
5.1 Amount
- WCN has a yearly dividend return of 0.81%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.10, 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 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)11.37%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 31.01% of the earnings are spent on dividend by WCN. This is a low number and sustainable payout ratio.
- WCN's earnings are growing slower than its dividend. 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 (3/13/2026, 7:00:00 PM)
228.56
+1.05 (+0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-11 2026-02-11/amc
Earnings (Next)04-21 2026-04-21/amc
Inst Owners90.22%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap58.44B
Revenue(TTM)9.47B
Net Income(TTM)1.08B
Analysts83
Price Target204.55 (-10.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.78
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)-1.82%
PT rev (3m)-0.45%
EPS NQ rev (1m)-5.12%
EPS NQ rev (3m)-5.16%
EPS NY rev (1m)-4.52%
EPS NY rev (3m)-4.68%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.65 | ||
| Fwd PE | 30.62 | ||
| P/S | 4.54 | ||
| P/FCF | 35.22 | ||
| P/OCF | 17.8 | ||
| P/B | 5.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.75 |
EPS(TTM)7
EY3.06%
EPS(NY)7.46
Fwd EY3.27%
FCF(TTM)6.49
FCFY2.84%
OCF(TTM)12.84
OCFY5.62%
SpS50.36
BVpS43.86
TBVpS-11.45
PEG (NY)4.98
PEG (5Y)2.3
Graham Number83.12
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 | 3.03 |
F-Score6
WACC8.2%
ROIC/WACC0.93
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 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 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 32.65 and the Price/Book (PB) ratio is 5.21.
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%.