WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WCN • CA94106B1013
167.6 USD
+0.37 (+0.22%)
At close: Jan 30, 2026
167.6 USD
0 (0%)
After Hours: 1/30/2026, 8:24:10 PM
Taking everything into account, WCN scores 5 out of 10 in our fundamental rating. WCN was compared to 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.
- In the past year WCN had a positive cash flow from operations.
- In the past 5 years WCN has always been profitable.
- In the past 5 years WCN always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of WCN (2.99%) is better than 62.50% of its industry peers.
- WCN has a better Return On Equity (7.69%) than 65.00% 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 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 10.57%.
- 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 has a Profit Margin of 6.65%. This is in the better half of the industry: WCN outperforms 76.25% of its industry peers.
- WCN's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 19.06%, WCN belongs to the top of the industry, outperforming 91.25% of the companies in the same industry.
- In the last couple of years the Operating Margin of WCN has grown nicely.
- WCN has a Gross Margin of 42.10%. This is in the better half of the industry: WCN outperforms 75.00% 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.
- WCN has about the same amout of shares outstanding than it did 1 year ago.
- 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 3.06 indicates that WCN is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.06, WCN is doing good in the industry, outperforming 68.75% of the companies in the same industry.
- The Debt to FCF ratio of WCN is 6.99, which is on the high side as it means it would take WCN, 6.99 years of fcf income to pay off all of its debts.
- WCN's Debt to FCF ratio of 6.99 is fine compared to the rest of the industry. WCN outperforms 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
WACC8.06%
2.3 Liquidity
- WCN has a Current 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.
- WCN's Current ratio of 0.67 is on the low side compared to the rest of the industry. WCN is outperformed by 87.50% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 0.67, WCN is doing worse than 81.25% of the companies in the same industry.
| 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.
- Measured over the past years, WCN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.90% on average per year.
- The Revenue has been growing slightly by 7.58% in the past year.
- Measured over the past years, WCN shows a quite strong growth in Revenue. The Revenue has been growing by 10.60% on average per year.
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 Y8.39%
EPS Next 2Y9.54%
EPS Next 3Y10.89%
EPS Next 5Y9.98%
Revenue Next Year6.33%
Revenue Next 2Y6.05%
Revenue Next 3Y6.2%
Revenue Next 5Y6.76%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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. Valuation
4.1 Price/Earnings Ratio
- WCN is valuated quite expensively with a Price/Earnings ratio of 33.39.
- 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 28.32.
- With a Price/Forward Earnings ratio of 29.16, WCN can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WCN is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. WCN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 29.16 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.76 | ||
| EV/EBITDA | 17.04 |
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)3.98
PEG (5Y)2.81
EPS Next 2Y9.54%
EPS Next 3Y10.89%
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 0.83, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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.
- WCN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.24%
EPS Next 2Y9.54%
EPS Next 3Y10.89%
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 33.39 and the Price/Book (PB) ratio is 5.3.
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%.