WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
USA - NYSE:WCN - CA94106B1013 - Common Stock
168.63 USD
+1.24 (+0.74%)
168.63 USD
0 (0%)
WCN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. WCN scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, WCN is valued expensive at the moment.
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.
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
The Return On Assets of WCN (2.99%) is better than 60.98% of its industry peers.
With a decent Return On Equity value of 7.69%, WCN is doing good in the industry, outperforming 62.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.55%, WCN is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
WCN had an Average Return On Invested Capital over the past 3 years of 7.10%. This is below the industry average of 10.52%.
The last Return On Invested Capital (7.55%) for WCN is above the 3 year average (7.10%), which is a sign of increasing profitability.
| 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
The Profit Margin of WCN (6.65%) is better than 75.61% of its industry peers.
In the last couple of years the Profit Margin of WCN has declined.
The Operating Margin of WCN (19.06%) is better than 92.68% of its industry peers.
WCN's Operating Margin has improved in the last couple of years.
WCN's Gross Margin of 42.10% is fine compared to the rest of the industry. WCN outperforms 73.17% 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.
Compared to 1 year ago, WCN has about the same amount of shares outstanding.
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
An Altman-Z score of 3.07 indicates that WCN is not in any danger for bankruptcy at the moment.
WCN has a better Altman-Z score (3.07) than 65.85% 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 62.20% 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.
The Debt to Equity ratio of WCN (1.07) is worse than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.95
WACC7.94%
2.3 Liquidity
A Current Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
The Current ratio of WCN (0.67) is worse than 86.59% of its industry peers.
A Quick Ratio of 0.67 indicates that WCN may have some problems paying 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
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.
The Revenue has been growing slightly by 7.58% in the past year.
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
The Earnings Per Share is expected to grow by 11.68% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.25% on average over the next years.
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.
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
WCN is valuated quite expensively with a Price/Earnings ratio of 33.59.
WCN's Price/Earnings ratio is in line with the industry average.
WCN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 29.29 indicates a quite expensive valuation of WCN.
WCN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WCN to the average of the S&P500 Index (34.59), we can say WCN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.59 | ||
| Fwd PE | 29.29 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.12 | ||
| EV/EBITDA | 17.08 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.95
PEG (5Y)2.82
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 2.55, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
On average, the dividend of WCN grows each year by 12.03%, which is quite nice.
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 2Y9.63%
EPS Next 3Y10.98%
168.63
+1.24 (+0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.89%
Inst Owner Change-1.77%
Ins Owners0.11%
Ins Owner Change-1.83%
Market Cap43.36B
Revenue(TTM)9.35B
Net Income(TTM)622.05M
Analysts84.21
Price Target206.71 (22.58%)
Short Float %0.58%
Short Ratio1.31
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)1.52%
PT rev (3m)-0.59%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-2.52%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.59 | ||
| Fwd PE | 29.29 | ||
| P/S | 4.64 | ||
| P/FCF | 35.12 | ||
| P/OCF | 17.87 | ||
| P/B | 5.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.08 |
EPS(TTM)5.02
EY2.98%
EPS(NY)5.76
Fwd EY3.41%
FCF(TTM)4.8
FCFY2.85%
OCF(TTM)9.44
OCFY5.6%
SpS36.38
BVpS31.48
TBVpS-8.5
PEG (NY)3.95
PEG (5Y)2.82
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 | 3.07 |
F-Score6
WACC7.94%
ROIC/WACC0.95
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%.