WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCN - CA94106B1013 - Common Stock
176.55 USD
-0.48 (-0.27%)
176.94 USD
+0.39 (+0.22%)
Taking everything into account, WCN scores 5 out of 10 in our fundamental rating. WCN was compared to 82 industry peers in the Commercial Services & Supplies industry. While WCN has a great profitability rating, there are quite some 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
WCN had positive earnings in the past year.
In the past year WCN had a positive cash flow from operations.
Each year in the past 5 years WCN has been profitable.
In the past 5 years WCN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.99%, WCN is in line with its industry, outperforming 59.76% of the companies in the same industry.
The Return On Equity of WCN (7.69%) is better than 62.20% of its industry peers.
WCN has a Return On Invested Capital of 7.55%. This is in the better half of the industry: WCN outperforms 65.85% of its industry peers.
WCN had an Average Return On Invested Capital over the past 3 years of 7.10%. This is below the industry average of 10.51%.
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 75.61% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
WCN has a better Operating Margin (19.06%) than 92.68% of its industry peers.
In the last couple of years the Operating Margin of WCN has grown nicely.
Looking at the Gross Margin, with a value of 42.10%, WCN is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
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
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 about the same amount of shares outstanding.
WCN has less shares outstanding than it did 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 3.18. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WCN (3.18) is better than 67.07% 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's Debt to FCF ratio of 6.99 is fine compared to the rest of the industry. WCN outperforms 63.41% 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 in the lower half of the industry: WCN underperforms 71.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.96
WACC7.89%
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: 86.59% of the companies in the same industry are doing better.
WCN has a Quick Ratio of 0.67. This is a bad value and indicates that WCN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.67, WCN is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
WCN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.91%.
The Earnings Per Share has been growing by 11.90% on average over the past years. This is quite good.
WCN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.58%.
WCN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.60% yearly.
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 11.68% yearly.
WCN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.25% yearly.
EPS Next Y8.5%
EPS Next 2Y9.63%
EPS Next 3Y10.98%
EPS Next 5Y11.68%
Revenue Next Year6.33%
Revenue Next 2Y6.07%
Revenue Next 3Y6.2%
Revenue Next 5Y7.25%
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
With a Price/Earnings ratio of 35.17, WCN can be considered very expensive at the moment.
WCN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, WCN is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 30.67, the valuation of WCN can be described as expensive.
WCN's Price/Forward Earnings ratio is in line with the industry average.
WCN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 30.67 |
4.2 Price Multiples
WCN's Enterprise Value to EBITDA is on the same level as the industry average.
WCN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.77 | ||
| EV/EBITDA | 17.9 |
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)4.14
PEG (5Y)2.96
EPS Next 2Y9.63%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, WCN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.61, WCN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.77, WCN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
The dividend of WCN is nicely growing with an annual growth rate of 12.03%!
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)12.03%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
52.24% of the earnings are spent on dividend by WCN. 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 2Y9.63%
EPS Next 3Y10.98%
176.55
-0.48 (-0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.89%
Inst Owner Change-3.42%
Ins Owners0.11%
Ins Owner Change-1.74%
Market Cap45.20B
Revenue(TTM)9.35B
Net Income(TTM)622.05M
Analysts84.21
Price Target205.1 (16.17%)
Short Float %0.76%
Short Ratio1.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend1.17
Dividend Growth(5Y)12.03%
DP52.24%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)0.73%
PT rev (3m)-0.32%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0.75%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 30.67 | ||
| P/S | 4.85 | ||
| P/FCF | 36.77 | ||
| P/OCF | 18.71 | ||
| P/B | 5.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.9 |
EPS(TTM)5.02
EY2.84%
EPS(NY)5.76
Fwd EY3.26%
FCF(TTM)4.8
FCFY2.72%
OCF(TTM)9.44
OCFY5.34%
SpS36.38
BVpS31.48
TBVpS-8.5
PEG (NY)4.14
PEG (5Y)2.96
Graham Number59.63
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 | 3.18 |
F-Score6
WACC7.89%
ROIC/WACC0.96
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 Y8.5%
EPS Next 2Y9.63%
EPS Next 3Y10.98%
EPS Next 5Y11.68%
Revenue 1Y (TTM)7.58%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%5.13%
Revenue Next Year6.33%
Revenue Next 2Y6.07%
Revenue Next 3Y6.2%
Revenue Next 5Y7.25%
EBIT growth 1Y4.81%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year78.14%
EBIT Next 3Y28.33%
EBIT Next 5Y19.66%
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.
Can you provide the valuation status for WASTE CONNECTIONS INC?
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 is the financial health of WASTE CONNECTIONS INC (WCN) stock?
The financial health rating of WASTE CONNECTIONS INC (WCN) is 3 / 10.
Is the dividend of WASTE CONNECTIONS INC sustainable?
The dividend rating of WASTE CONNECTIONS INC (WCN) is 4 / 10 and the dividend payout ratio is 52.24%.