WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
USA - NYSE:WCN - CA94106B1013 - Common Stock
174.275 USD
+0.69 (+0.4%)
Overall WCN gets a fundamental rating of 5 out of 10. We evaluated WCN against 84 industry peers in the Commercial Services & Supplies industry. WCN has an excellent profitability rating, 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.
WCN had a positive operating cash flow in the past year.
WCN had positive earnings in each of the past 5 years.
Each year in the past 5 years WCN had a positive operating cash flow.
1.2 Ratios
WCN's Return On Assets of 3.11% is fine compared to the rest of the industry. WCN outperforms 63.10% of its industry peers.
The Return On Equity of WCN (7.71%) is better than 64.29% of its industry peers.
With a decent Return On Invested Capital value of 7.49%, WCN is doing good in the industry, outperforming 65.48% 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 10.60%.
The last Return On Invested Capital (7.49%) for WCN is above the 3 year average (7.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 7.71% | ||
| ROIC | 7.49% |
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
With a decent Profit Margin value of 6.97%, WCN is doing good in the industry, outperforming 76.19% of the companies in the same industry.
WCN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.12%, WCN belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of WCN has grown nicely.
With a decent Gross Margin value of 42.03%, WCN is doing good in the industry, outperforming 72.62% of the companies in the same industry.
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 | 19.12% | ||
| PM (TTM) | 6.97% | ||
| GM | 42.03% |
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.
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
An Altman-Z score of 3.19 indicates that WCN is not in any danger for bankruptcy at the moment.
WCN has a Altman-Z score of 3.19. This is in the better half of the industry: WCN outperforms 63.10% of its industry peers.
The Debt to FCF ratio of WCN is 7.32, which is on the high side as it means it would take WCN, 7.32 years of fcf income to pay off all of its debts.
WCN's Debt to FCF ratio of 7.32 is fine compared to the rest of the industry. WCN outperforms 63.10% of its industry peers.
WCN has a Debt/Equity ratio of 1.00. This is a neutral value indicating WCN is somewhat dependend on debt financing.
WCN has a worse Debt to Equity ratio (1.00) than 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.93
WACC8.05%
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.
Looking at the Current ratio, with a value of 0.67, WCN is doing worse than 86.90% of the companies in the same industry.
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: 83.33% 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 grown by an nice 8.11% 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 grown by 9.65% in the past year. This is quite good.
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)8.11%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%4.03%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%7.07%
3.2 Future
The Earnings Per Share is expected to grow by 11.90% on average over the next years. This is quite good.
WCN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.57% yearly.
EPS Next Y7.72%
EPS Next 2Y10.85%
EPS Next 3Y11.52%
EPS Next 5Y11.9%
Revenue Next Year6.38%
Revenue Next 2Y6.7%
Revenue Next 3Y6.92%
Revenue Next 5Y7.57%
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.
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
A Price/Earnings ratio of 35.35 indicates a quite expensive valuation of WCN.
Compared to the rest of the industry, the Price/Earnings ratio of WCN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.20, WCN is valued a bit more expensive.
The Price/Forward Earnings ratio is 29.61, which means the current valuation is very expensive for WCN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WCN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WCN to the average of the S&P500 Index (22.71), we can say WCN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.35 | ||
| Fwd PE | 29.61 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WCN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.29 | ||
| EV/EBITDA | 17.75 |
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)4.58
PEG (5Y)2.97
EPS Next 2Y10.85%
EPS Next 3Y11.52%
5. Dividend
5.1 Amount
WCN has a yearly dividend return of 0.73%, which is pretty low.
WCN's Dividend Yield is a higher than the industry average which is at 2.27.
Compared to an average S&P500 Dividend Yield of 2.38, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
On average, the dividend of WCN grows each year by 12.03%, which is quite nice.
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
WCN pays out 49.38% 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.
DP49.38%
EPS Next 2Y10.85%
EPS Next 3Y11.52%
NYSE:WCN (9/17/2025, 11:10:09 AM)
174.275
+0.69 (+0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.49%
Inst Owner Change0.33%
Ins Owners0.15%
Ins Owner Change-1.01%
Market Cap44.81B
Analysts81.18
Price Target206.46 (18.47%)
Short Float %0.86%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend1.17
Dividend Growth(5Y)12.03%
DP49.38%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.89%
Min EPS beat(2)1.76%
Max EPS beat(2)2.03%
EPS beat(4)3
Avg EPS beat(4)0.3%
Min EPS beat(4)-5.03%
Max EPS beat(4)2.46%
EPS beat(8)7
Avg EPS beat(8)1.43%
EPS beat(12)9
Avg EPS beat(12)1.43%
EPS beat(16)12
Avg EPS beat(16)1.43%
Revenue beat(2)0
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)0.84%
Revenue beat(8)2
Avg Revenue beat(8)-0.22%
Revenue beat(12)3
Avg Revenue beat(12)-0.28%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)-0.71%
PT rev (3m)-0.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)-3.21%
EPS NY rev (3m)-3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.35 | ||
| Fwd PE | 29.61 | ||
| P/S | 4.85 | ||
| P/FCF | 39.29 | ||
| P/OCF | 19.42 | ||
| P/B | 5.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.75 |
EPS(TTM)4.93
EY2.83%
EPS(NY)5.89
Fwd EY3.38%
FCF(TTM)4.44
FCFY2.55%
OCF(TTM)8.97
OCFY5.15%
SpS35.91
BVpS32.49
TBVpS-7.5
PEG (NY)4.58
PEG (5Y)2.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 7.71% | ||
| ROCE | 9.45% | ||
| ROIC | 7.49% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 16.88% | ||
| OM | 19.12% | ||
| PM (TTM) | 6.97% | ||
| GM | 42.03% | ||
| FCFM | 12.35% |
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%
ROICexcg growth 3Y4.71%
ROICexcg 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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 96.17% | ||
| Cap/Sales | 12.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.45% | ||
| Profit Quality | 177.13% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.19 |
F-Score5
WACC8.05%
ROIC/WACC0.93
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)8.11%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%4.03%
EPS Next Y7.72%
EPS Next 2Y10.85%
EPS Next 3Y11.52%
EPS Next 5Y11.9%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%7.07%
Revenue Next Year6.38%
Revenue Next 2Y6.7%
Revenue Next 3Y6.92%
Revenue Next 5Y7.57%
EBIT growth 1Y8.5%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year80.4%
EBIT Next 3Y29.5%
EBIT Next 5Y19.74%
FCF growth 1Y0.91%
FCF growth 3Y7.13%
FCF growth 5Y6.05%
OCF growth 1Y11.69%
OCF growth 3Y9.49%
OCF growth 5Y7.67%