WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
NYSE:WCN • CA94106B1013
163.62 USD
-2.44 (-1.47%)
At close: Feb 20, 2026
163.62 USD
0 (0%)
After Hours: 2/20/2026, 8:10:21 PM
We assign a fundamental rating of 5 out of 10 to WCN. WCN was compared to 80 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. WCN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
- Each year in the past 5 years WCN had a positive operating cash flow.
1.2 Ratios
- WCN has a Return On Assets of 5.10%. This is in the better half of the industry: WCN outperforms 72.50% of its industry peers.
- WCN has a better Return On Equity (13.06%) than 71.25% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.60%, WCN is in the better half of the industry, outperforming 70.00% 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 below the industry average of 10.56%.
- The last Return On Invested Capital (7.60%) for WCN is above the 3 year average (7.41%), which is a sign of increasing profitability.
| 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 88.75% of its industry peers.
- In the last couple of years the Profit Margin of WCN has grown nicely.
- WCN has a better Operating Margin (19.48%) than 92.50% of its industry peers.
- In the last couple of years the Operating Margin of WCN has grown nicely.
- The Gross Margin of WCN (42.37%) is better than 76.25% 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 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. 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 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
- An Altman-Z score of 3.01 indicates that WCN is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.01, WCN is doing good in the industry, outperforming 63.75% 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 68.75% 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 worse Debt to Equity ratio (1.07) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.23 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.98
WACC7.74%
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 88.75% 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 amonst the worse of the industry: WCN underperforms 86.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- WCN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.52%.
- The Earnings Per Share has been growing by 14.21% on average over the past years. This is quite good.
- Looking at the last year, WCN shows a small growth in Revenue. The Revenue has grown by 6.14% in the last year.
- Measured over the past years, WCN shows a quite strong growth in Revenue. The Revenue has been growing by 11.69% on average per year.
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 8.51% on average per year.
- Based on estimates for the next years, WCN will show a small growth in Revenue. The Revenue will grow by 6.27% on average per year.
EPS Next Y11.61%
EPS Next 2Y12.62%
EPS Next 3Y13.89%
EPS Next 5Y8.51%
Revenue Next Year5.38%
Revenue Next 2Y5.87%
Revenue Next 3Y6.21%
Revenue Next 5Y6.27%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 31.77, WCN can be considered very expensive at the moment.
- WCN's Price/Earnings ratio is in line with the industry average.
- WCN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.99.
- WCN is valuated quite expensively with a Price/Forward Earnings ratio of 28.47.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WCN indicates a somewhat cheap valuation: WCN is cheaper than 61.25% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. WCN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.77 | ||
| Fwd PE | 28.47 |
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 | 34.34 | ||
| EV/EBITDA | 16.67 |
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 excellent profitability rating of WCN may justify a higher PE ratio.
- WCN's earnings are expected to grow with 13.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.74
PEG (5Y)2.24
EPS Next 2Y12.62%
EPS Next 3Y13.89%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.81%, WCN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.80, WCN pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.81, WCN pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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 last 3 years.
Dividend Growth(5Y)11.37%
Div Incr Years3
Div Non Decr Years3
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 2Y12.62%
EPS Next 3Y13.89%
163.62
-2.44 (-1.47%)
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 Owners89.12%
Inst Owner Change1.38%
Ins Owners0.11%
Ins Owner Change-1%
Market Cap41.89B
Revenue(TTM)9.47B
Net Income(TTM)1.08B
Analysts83
Price Target152.34 (-6.89%)
Short Float %0.9%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.3
Dividend Growth(5Y)11.37%
DP31.01%
Div Incr Years3
Div Non Decr Years3
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)2.27%
PT rev (3m)-25.82%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.77 | ||
| Fwd PE | 28.47 | ||
| P/S | 4.42 | ||
| P/FCF | 34.34 | ||
| P/OCF | 17.35 | ||
| P/B | 5.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.67 |
EPS(TTM)5.15
EY3.15%
EPS(NY)5.75
Fwd EY3.51%
FCF(TTM)4.76
FCFY2.91%
OCF(TTM)9.43
OCFY5.76%
SpS36.98
BVpS32.21
TBVpS-8.41
PEG (NY)2.74
PEG (5Y)2.24
Graham Number61.09
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 | 3.01 |
F-Score6
WACC7.74%
ROIC/WACC0.98
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 Y11.61%
EPS Next 2Y12.62%
EPS Next 3Y13.89%
EPS Next 5Y8.51%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%5%
Revenue Next Year5.38%
Revenue Next 2Y5.87%
Revenue Next 3Y6.21%
Revenue Next 5Y6.27%
EBIT growth 1Y8.05%
EBIT growth 3Y12.78%
EBIT growth 5Y15.71%
EBIT Next Year81.87%
EBIT Next 3Y29.59%
EBIT Next 5Y19.58%
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 FAQ
What is the ChartMill fundamental rating of WASTE CONNECTIONS INC (WCN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WCN.
What is the valuation status of WASTE CONNECTIONS INC (WCN) stock?
ChartMill assigns a valuation rating of 3 / 10 to WASTE CONNECTIONS INC (WCN). This can be considered as Overvalued.
What is the profitability of WCN stock?
WASTE CONNECTIONS INC (WCN) has a profitability rating of 8 / 10.
What are the PE and PB ratios of WASTE CONNECTIONS INC (WCN) stock?
The Price/Earnings (PE) ratio for WASTE CONNECTIONS INC (WCN) is 31.77 and the Price/Book (PB) ratio is 5.08.
Can you provide the dividend sustainability for WCN stock?
The dividend rating of WASTE CONNECTIONS INC (WCN) is 5 / 10 and the dividend payout ratio is 31.01%.