WASTE CONNECTIONS INC (WCN.CA) Fundamental Analysis & Valuation
TSX:WCN • CA94106B1013
Current stock price
219 CAD
-4.98 (-2.22%)
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.
- Each year in the past 5 years WCN has been profitable.
- WCN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of WCN (4.98%) is better than 82.61% of its industry peers.
- WCN has a Return On Equity of 13.09%. This is in the better half of the industry: WCN outperforms 78.26% of its industry peers.
- The Return On Invested Capital of WCN (7.69%) 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 6.34%.
- The last Return On Invested Capital (7.69%) for WCN is above the 3 year average (7.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 13.09% | ||
| ROIC | 7.69% |
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
- The Profit Margin of WCN (10.97%) is better than 86.96% of its industry peers.
- WCN's Profit Margin has improved in the last couple of years.
- The Operating Margin of WCN (19.58%) is better than 95.65% of its industry peers.
- In the last couple of years the Operating Margin of WCN has grown nicely.
- The Gross Margin of WCN (42.50%) is better than 73.91% of its industry peers.
- WCN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.58% | ||
| PM (TTM) | 10.97% | ||
| GM | 42.5% |
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.
- The number of shares outstanding for WCN has been reduced compared to 1 year ago.
- The number of shares outstanding for WCN has been reduced compared to 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 2.97. 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 2.97, WCN belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
- WCN has a debt to FCF ratio of 7.99. This is a slightly negative value and a sign of low solvency as WCN would need 7.99 years to pay back of all of its debts.
- WCN's Debt to FCF ratio of 7.99 is fine compared to the rest of the industry. WCN outperforms 60.87% of its industry peers.
- A Debt/Equity ratio of 1.13 is on the high side and indicates that WCN has dependencies on debt financing.
- WCN has a Debt to Equity ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 7.99 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.89
WACC8.63%
2.3 Liquidity
- WCN has a Current Ratio of 0.69. 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 0.69. This is in the lower half of the industry: WCN underperforms 65.22% of its industry peers.
- A Quick Ratio of 0.69 indicates that WCN may have some problems paying its short term obligations.
- WCN has a worse Quick ratio (0.69) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
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 7.58%.
- 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.
- The Revenue has been growing slightly by 5.89% in the past year.
- The Revenue has been growing by 11.69% on average over the past years. This is quite good.
EPS 1Y (TTM)7.58%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%8.85%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%6.39%
3.2 Future
- The Earnings Per Share is expected to grow by 10.60% 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 5.99% on average per year.
EPS Next Y6.88%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
EPS Next 5Y10.6%
Revenue Next Year5.17%
Revenue Next 2Y5.67%
Revenue Next 3Y6.04%
Revenue Next 5Y5.99%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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. WCN.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 30.50, which means the current valuation is very expensive for WCN.
- 65.22% of the companies in the same industry are more expensive than WCN, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of WCN to the average of the S&P500 Index (26.64), we can say WCN is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 25.40, the valuation of WCN can be described as expensive.
- WCN's Price/Forward Earnings is on the same level as the industry average.
- WCN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.5 | ||
| Fwd PE | 25.4 |
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.
- 60.87% of the companies in the same industry are more expensive than WCN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.83 | ||
| EV/EBITDA | 16.16 |
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)4.44
PEG (5Y)2.15
EPS Next 2Y10.67%
EPS Next 3Y11.45%
5. WCN.CA Dividend Analysis
5.1 Amount
- WCN has a yearly dividend return of 0.79%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.09, WCN pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
- The dividend of WCN is nicely growing with an annual growth rate of 11.37%!
- WCN has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
- 32.35% 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.
DP32.35%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
WCN.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:WCN (5/1/2026, 7:00:00 PM)
219
-4.98 (-2.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Industry Strength21.74
Industry Growth10.56
Earnings (Last)04-22 2026-04-22/amc
Earnings (Next)07-21 2026-07-21/amc
Inst Owners90.16%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap55.81B
Revenue(TTM)9.61B
Net Income(TTM)1.05B
Analysts83
Price Target278.88 (27.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend1.78
Dividend Growth(5Y)11.37%
DP32.35%
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)1.23%
Min EPS beat(2)-0.31%
Max EPS beat(2)2.78%
EPS beat(4)3
Avg EPS beat(4)1.9%
Min EPS beat(4)-0.31%
Max EPS beat(4)3.11%
EPS beat(8)6
Avg EPS beat(8)1.46%
EPS beat(12)9
Avg EPS beat(12)1.39%
EPS beat(16)12
Avg EPS beat(16)1.67%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)-0.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.23%
Revenue beat(12)2
Avg Revenue beat(12)-0.33%
Revenue beat(16)4
Avg Revenue beat(16)-0.3%
PT rev (1m)36.34%
PT rev (3m)35.73%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-3.54%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-4.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.5 | ||
| Fwd PE | 25.4 | ||
| P/S | 4.25 | ||
| P/FCF | 35.83 | ||
| P/OCF | 16.89 | ||
| P/B | 5.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.16 |
EPS(TTM)7.18
EY3.28%
EPS(NY)8.62
Fwd EY3.94%
FCF(TTM)6.11
FCFY2.79%
OCF(TTM)12.97
OCFY5.92%
SpS51.54
BVpS43.21
TBVpS-12.43
PEG (NY)4.44
PEG (5Y)2.15
Graham Number83.5532 (-61.85%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 13.09% | ||
| ROCE | 9.81% | ||
| ROIC | 7.69% | ||
| ROICexc | 7.73% | ||
| ROICexgc | 16.96% | ||
| OM | 19.58% | ||
| PM (TTM) | 10.97% | ||
| GM | 42.5% | ||
| FCFM | 11.86% |
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-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 7.99 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 101.72% | ||
| Cap/Sales | 13.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.05% | ||
| Profit Quality | 108.08% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.97 |
F-Score7
WACC8.63%
ROIC/WACC0.89
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 5Y10.6%
Revenue 1Y (TTM)5.89%
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 5Y5.99%
EBIT growth 1Y8.23%
EBIT growth 3Y12.78%
EBIT growth 5Y15.71%
EBIT Next Year80.5%
EBIT Next 3Y28.36%
EBIT Next 5Y19.2%
FCF growth 1Y-8.58%
FCF growth 3Y3.2%
FCF growth 5Y10.39%
OCF growth 1Y11.19%
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 32.35%.