WASTE CONNECTIONS INC (WCN.CA) Fundamental Analysis & Valuation

TSX:WCN • CA94106B1013

Current stock price

231.14 CAD
+4.94 (+2.18%)
Last:

This WCN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. WCN.CA Profitability Analysis

1.1 Basic Checks

  • In the past year WCN was profitable.
  • In the past year WCN had a positive cash flow from operations.
  • In the past 5 years WCN has always been profitable.
  • Each year in the past 5 years WCN had a positive operating cash flow.
WCN.CA Yearly Net Income VS EBIT VS OCF VS FCFWCN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

1.2 Ratios

  • WCN has a better Return On Assets (5.10%) than 82.61% of its industry peers.
  • The Return On Equity of WCN (13.06%) is better than 78.26% of its industry peers.
  • The Return On Invested Capital of WCN (7.60%) is better than 82.61% of its industry peers.
  • 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 6.08%.
  • The 3 year average ROIC (7.41%) for WCN is below the current ROIC(7.60%), indicating increased profibility in the last year.
Industry RankSector 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%
WCN.CA Yearly ROA, ROE, ROICWCN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • With an excellent Profit Margin value of 11.37%, WCN belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
  • 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 95.65% of its industry peers.
  • WCN's Operating Margin has improved in the last couple of years.
  • WCN has a Gross Margin of 42.37%. This is in the better half of the industry: WCN outperforms 73.91% 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 RankSector 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%
WCN.CA Yearly Profit, Operating, Gross MarginsWCN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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4

2. WCN.CA Health Analysis

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.
  • The number of shares outstanding for WCN has been reduced compared to 1 year ago.
  • Compared to 5 years ago, WCN has less shares outstanding
  • The debt/assets ratio for WCN is higher compared to a year ago.
WCN.CA Yearly Shares OutstandingWCN.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
WCN.CA Yearly Total Debt VS Total AssetsWCN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • WCN has an Altman-Z score of 3.01. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.01, WCN belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
  • 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.
  • WCN has a Debt to FCF ratio of 7.23. This is in the better half of the industry: WCN outperforms 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.
  • WCN has a Debt to Equity ratio of 1.07. This is comparable to the rest of the industry: WCN outperforms 52.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 7.23
Altman-Z 3.01
ROIC/WACC0.87
WACC8.71%
WCN.CA Yearly LT Debt VS Equity VS FCFWCN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.62 indicates that WCN may have some problems paying 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 65.22% of its industry peers.
  • A Quick Ratio of 0.58 indicates that WCN may have some problems paying its short term obligations.
  • WCN's Quick ratio of 0.58 is on the low side compared to the rest of the industry. WCN is outperformed by 69.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.58
WCN.CA Yearly Current Assets VS Current LiabilitesWCN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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4

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

  • WCN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.22% yearly.
  • WCN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y6.56%
EPS Next 2Y10.82%
EPS Next 3Y11.2%
EPS Next 5Y9.22%
Revenue Next Year5.17%
Revenue Next 2Y5.67%
Revenue Next 3Y6.04%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WCN.CA Yearly Revenue VS EstimatesWCN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
WCN.CA Yearly EPS VS EstimatesWCN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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3

4. WCN.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 32.28 indicates a quite expensive valuation of WCN.
  • Based on the Price/Earnings ratio, WCN is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
  • WCN is valuated rather expensively when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
  • WCN is valuated quite expensively with a Price/Forward Earnings ratio of 30.28.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WCN.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, WCN is valued a bit more expensive.
Industry RankSector Rank
PE 32.28
Fwd PE 30.28
WCN.CA Price Earnings VS Forward Price EarningsWCN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
  • WCN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WCN is cheaper than 60.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF 34.84
EV/EBITDA 16.66
WCN.CA Per share dataWCN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

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.
  • WCN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.92
PEG (5Y)2.27
EPS Next 2Y10.82%
EPS Next 3Y11.2%

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5

5. WCN.CA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.84%, WCN is not a good candidate for dividend investing.
  • WCN's Dividend Yield is a higher than the industry average which is at 1.15.
  • With a Dividend Yield of 0.84, WCN pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.84%

5.2 History

  • The dividend of WCN is nicely growing with an annual growth rate of 11.37%!
  • 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 Years8
Div Non Decr Years8
WCN.CA Yearly Dividends per shareWCN.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • WCN pays out 31.01% of its income as dividend. This is a 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 Yearly Income VS Free CF VS DividendWCN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
WCN.CA Dividend Payout.WCN.CA Dividend Payout, showing the Payout Ratio.WCN.CA Dividend Payout.PayoutRetained Earnings

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WCN.CA Fundamentals: All Metrics, Ratios and Statistics

WASTE CONNECTIONS INC

TSX:WCN (4/2/2026, 7:00:00 PM)

231.14

+4.94 (+2.18%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-11
Earnings (Next)04-22
Inst Owners90.22%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap59.10B
Revenue(TTM)9.47B
Net Income(TTM)1.08B
Analysts83
Price Target278.88 (20.65%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.84%
Yearly Dividend1.81
Dividend Growth(5Y)11.37%
DP31.01%
Div Incr Years8
Div Non Decr Years8
Ex-Date02-25
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)0.01%
EPS NQ rev (3m)-5.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.64%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.6%
Valuation
Industry RankSector Rank
PE 32.28
Fwd PE 30.28
P/S 4.49
P/FCF 34.84
P/OCF 17.6
P/B 5.15
P/tB N/A
EV/EBITDA 16.66
EPS(TTM)7.16
EY3.1%
EPS(NY)7.63
Fwd EY3.3%
FCF(TTM)6.64
FCFY2.87%
OCF(TTM)13.13
OCFY5.68%
SpS51.5
BVpS44.85
TBVpS-11.71
PEG (NY)4.92
PEG (5Y)2.27
Graham Number85.01
Profitability
Industry RankSector 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 RankSector 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 3.01
F-Score6
WACC8.71%
ROIC/WACC0.87
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 Year5.17%
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 Year80.66%
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 3 / 10 to WASTE CONNECTIONS INC (WCN.CA). This can be considered as Overvalued.


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 4 / 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%.