WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCN - CA94106B1013 - Common Stock
167.11 USD
-0.52 (-0.31%)
167.11 USD
0 (0%)
Overall WCN gets a fundamental rating of 5 out of 10. We evaluated WCN against 80 industry peers in the Commercial Services & Supplies industry. WCN has an excellent profitability rating, but there are concerns on its financial health. WCN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WCN was profitable.
- 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
- Looking at the Return On Assets, with a value of 2.99%, WCN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- With a decent Return On Equity value of 7.69%, WCN is doing good in the industry, outperforming 65.00% of the companies in the same industry.
- WCN has a better Return On Invested Capital (7.55%) than 67.50% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WCN is below the industry average of 10.58%.
- The 3 year average ROIC (7.10%) for WCN is below the current ROIC(7.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 7.69% | ||
| ROIC | 7.55% |
ROA(3y)4.08%
ROA(5y)3.58%
ROE(3y)9.84%
ROE(5y)8.27%
ROIC(3y)7.1%
ROIC(5y)6.62%
1.3 Margins
- WCN's Profit Margin of 6.65% is fine compared to the rest of the industry. WCN outperforms 77.50% of its industry peers.
- In the last couple of years the Profit Margin of WCN has declined.
- WCN's Operating Margin of 19.06% is amongst the best of the industry. WCN outperforms 91.25% of its industry peers.
- WCN's Operating Margin has improved in the last couple of years.
- The Gross Margin of WCN (42.10%) is better than 76.25% of its industry peers.
- WCN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.06% | ||
| PM (TTM) | 6.65% | ||
| GM | 42.1% |
OM growth 3Y2.81%
OM growth 5Y2.48%
PM growth 3Y-11.67%
PM growth 5Y-8.02%
GM growth 3Y0.97%
GM growth 5Y0.56%
2. Health
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 remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, WCN has less shares outstanding
- Compared to 1 year ago, WCN has a worse debt to assets ratio.
2.2 Solvency
- WCN has an Altman-Z score of 3.06. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
- WCN has a better Altman-Z score (3.06) than 67.50% of its industry peers.
- WCN has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as WCN would need 6.99 years to pay back of all of its debts.
- WCN has a better Debt to FCF ratio (6.99) than 67.50% of its industry peers.
- WCN has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
- WCN has a Debt to Equity ratio of 1.07. This is in the lower half of the industry: WCN underperforms 71.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.94
WACC8.04%
2.3 Liquidity
- A Current Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
- With a Current ratio value of 0.67, WCN is not doing good in the industry: 86.25% of the companies in the same industry are doing better.
- A Quick Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
- WCN has a Quick ratio of 0.67. This is amonst the worse of the industry: WCN underperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.91% 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 11.90% yearly.
- WCN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.58%.
- The Revenue has been growing by 10.60% on average over the past years. This is quite good.
EPS 1Y (TTM)5.91%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%6.67%
Revenue 1Y (TTM)7.58%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%5.13%
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 9.98% yearly.
- The Revenue is expected to grow by 6.76% on average over the next years.
EPS Next Y8.43%
EPS Next 2Y9.61%
EPS Next 3Y11.01%
EPS Next 5Y9.98%
Revenue Next Year6.33%
Revenue Next 2Y6.05%
Revenue Next 3Y6.2%
Revenue Next 5Y6.76%
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 stable.
- 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. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 33.29 indicates a quite expensive valuation of WCN.
- WCN's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.38. WCN is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 29.04, WCN can be considered very expensive at the moment.
- WCN's Price/Forward Earnings is on the same level as the industry average.
- WCN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.29 | ||
| Fwd PE | 29.04 |
4.2 Price Multiples
- WCN's Enterprise Value to EBITDA ratio is in line with the industry average.
- WCN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.66 | ||
| EV/EBITDA | 17 |
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 decent profitability rating of WCN may justify a higher PE ratio.
PEG (NY)3.95
PEG (5Y)2.8
EPS Next 2Y9.61%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
- WCN has a yearly dividend return of 0.78%, which is pretty low.
- WCN's Dividend Yield is a higher than the industry average which is at 0.83.
- Compared to an average S&P500 Dividend Yield of 1.85, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
- The dividend of WCN is nicely growing with an annual growth rate of 12.03%!
- 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 last 3 years.
Dividend Growth(5Y)12.03%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- WCN pays out 52.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of WCN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.24%
EPS Next 2Y9.61%
EPS Next 3Y11.01%
167.11
-0.52 (-0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners89.12%
Inst Owner Change-0.09%
Ins Owners0.11%
Ins Owner Change-1.66%
Market Cap42.78B
Revenue(TTM)9.35B
Net Income(TTM)622.05M
Analysts84.21
Price Target148.01 (-11.43%)
Short Float %0.94%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Yearly Dividend1.17
Dividend Growth(5Y)12.03%
DP52.24%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.57%
Min EPS beat(2)2.03%
Max EPS beat(2)3.11%
EPS beat(4)3
Avg EPS beat(4)0.47%
Min EPS beat(4)-5.03%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)1.66%
EPS beat(12)9
Avg EPS beat(12)1.16%
EPS beat(16)12
Avg EPS beat(16)1.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)-0.25%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)3
Avg Revenue beat(12)-0.28%
Revenue beat(16)6
Avg Revenue beat(16)-0.06%
PT rev (1m)0.58%
PT rev (3m)-27.31%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-0.86%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.29 | ||
| Fwd PE | 29.04 | ||
| P/S | 4.57 | ||
| P/FCF | 34.66 | ||
| P/OCF | 17.63 | ||
| P/B | 5.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17 |
EPS(TTM)5.02
EY3%
EPS(NY)5.75
Fwd EY3.44%
FCF(TTM)4.82
FCFY2.89%
OCF(TTM)9.48
OCFY5.67%
SpS36.54
BVpS31.61
TBVpS-8.54
PEG (NY)3.95
PEG (5Y)2.8
Graham Number59.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 7.69% | ||
| ROCE | 9.54% | ||
| ROIC | 7.55% | ||
| ROICexc | 7.6% | ||
| ROICexgc | 17.01% | ||
| OM | 19.06% | ||
| PM (TTM) | 6.65% | ||
| GM | 42.1% | ||
| FCFM | 13.2% |
ROA(3y)4.08%
ROA(5y)3.58%
ROE(3y)9.84%
ROE(5y)8.27%
ROIC(3y)7.1%
ROIC(5y)6.62%
ROICexc(3y)7.13%
ROICexc(5y)6.71%
ROICexgc(3y)16.04%
ROICexgc(5y)15.16%
ROCE(3y)8.97%
ROCE(5y)8.36%
ROICexgc growth 3Y4.71%
ROICexgc growth 5Y6.27%
ROICexc growth 3Y5.49%
ROICexc growth 5Y5.39%
OM growth 3Y2.81%
OM growth 5Y2.48%
PM growth 3Y-11.67%
PM growth 5Y-8.02%
GM growth 3Y0.97%
GM growth 5Y0.56%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 96.51% | ||
| Cap/Sales | 12.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.4% | ||
| Profit Quality | 198.46% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.06 |
F-Score6
WACC8.04%
ROIC/WACC0.94
Cap/Depr(3y)94.39%
Cap/Depr(5y)92.61%
Cap/Sales(3y)12.05%
Cap/Sales(5y)12.09%
Profit Quality(3y)159.7%
Profit Quality(5y)199.37%
High Growth Momentum
Growth
EPS 1Y (TTM)5.91%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%6.67%
EPS Next Y8.43%
EPS Next 2Y9.61%
EPS Next 3Y11.01%
EPS Next 5Y9.98%
Revenue 1Y (TTM)7.58%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%5.13%
Revenue Next Year6.33%
Revenue Next 2Y6.05%
Revenue Next 3Y6.2%
Revenue Next 5Y6.76%
EBIT growth 1Y4.81%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year77.97%
EBIT Next 3Y27.4%
EBIT Next 5Y19.22%
FCF growth 1Y4.33%
FCF growth 3Y7.13%
FCF growth 5Y6.05%
OCF growth 1Y15.9%
OCF growth 3Y9.49%
OCF growth 5Y7.67%
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 2 / 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 7 / 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 33.29 and the Price/Book (PB) ratio is 5.29.
Can you provide the dividend sustainability for WCN stock?
The dividend rating of WASTE CONNECTIONS INC (WCN) is 4 / 10 and the dividend payout ratio is 52.24%.