WASTE CONNECTIONS INC (WCN) Fundamental Analysis & Valuation
NYSE:WCN • CA94106B1013
Current stock price
166.08 USD
+3.26 (+2%)
At close:
166.08 USD
0 (0%)
After Hours:
This WCN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. WCN Profitability Analysis
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
- WCN's Return On Assets of 5.10% is fine compared to the rest of the industry. WCN outperforms 72.84% of its industry peers.
- WCN has a Return On Equity of 13.06%. This is in the better half of the industry: WCN outperforms 71.60% of its industry peers.
- The Return On Invested Capital of WCN (7.60%) is better than 71.60% of its industry peers.
- WCN had an Average Return On Invested Capital over the past 3 years of 7.41%. This is below the industry average of 10.18%.
- The 3 year average ROIC (7.41%) for WCN is below the current ROIC(7.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 13.06% | ||
| ROIC | 7.6% |
ROA(3y)4.16%
ROA(5y)4.31%
ROE(3y)10.28%
ROE(5y)10.29%
ROIC(3y)7.41%
ROIC(5y)7%
1.3 Margins
- The Profit Margin of WCN (11.37%) is better than 88.89% of its industry peers.
- WCN's Profit Margin has improved in the last couple of years.
- WCN has a better Operating Margin (19.48%) than 93.83% of its industry peers.
- In the last couple of years the Operating Margin of WCN has grown nicely.
- With a decent Gross Margin value of 42.37%, WCN is doing good in the industry, outperforming 76.54% 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 | 19.48% | ||
| PM (TTM) | 11.37% | ||
| GM | 42.37% |
OM growth 3Y3.01%
OM growth 5Y3.6%
PM growth 3Y-0.62%
PM growth 5Y24.78%
GM growth 3Y2.05%
GM growth 5Y1.25%
2. WCN Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WCN is destroying value.
- WCN has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, WCN has less shares outstanding
- WCN has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.01 indicates that WCN is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.01, WCN is in the better half of the industry, outperforming 67.90% of the companies in the same industry.
- The Debt to FCF ratio of WCN is 7.23, which is on the high side as it means it would take WCN, 7.23 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 7.23, WCN is doing good in the industry, outperforming 64.20% of the companies in the same industry.
- WCN has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.07, WCN is not doing good in the industry: 67.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.23 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.89
WACC8.51%
2.3 Liquidity
- WCN has a Current Ratio of 0.62. 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 has a Current ratio of 0.62. This is amonst the worse of the industry: WCN underperforms 86.42% of its industry peers.
- WCN has a Quick Ratio of 0.62. 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 Quick ratio of 0.58 is on the low side compared to the rest of the industry. WCN is outperformed by 86.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. WCN Growth Analysis
3.1 Past
- WCN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.52%.
- WCN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.21% yearly.
- Looking at the last year, WCN shows a small growth in Revenue. The Revenue has grown by 6.14% in the last year.
- WCN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.69% yearly.
EPS 1Y (TTM)7.52%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%11.21%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%5%
3.2 Future
- Based on estimates for the next years, WCN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.22% on average per year.
- The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y6.56%
EPS Next 2Y10.82%
EPS Next 3Y11.2%
EPS Next 5Y9.22%
Revenue Next Year5.2%
Revenue Next 2Y5.67%
Revenue Next 3Y5.81%
Revenue Next 5Y5.74%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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. WCN Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 32.25, the valuation of WCN can be described as expensive.
- WCN's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 25.60, WCN is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 30.26, WCN can be considered very expensive at the moment.
- WCN's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of WCN to the average of the S&P500 Index (22.84), we can say WCN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.25 | ||
| Fwd PE | 30.26 |
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 | 34.81 | ||
| EV/EBITDA | 16.66 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- WCN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.91
PEG (5Y)2.27
EPS Next 2Y10.82%
EPS Next 3Y11.2%
5. WCN Dividend Analysis
5.1 Amount
- WCN has a yearly dividend return of 0.81%, which is pretty low.
- WCN's Dividend Yield is a higher than the industry average which is at 0.85.
- Compared to an average S&P500 Dividend Yield of 1.88, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
- On average, the dividend of WCN grows each year by 11.37%, 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)11.37%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- WCN pays out 31.01% of its income as dividend. This is a sustainable payout ratio.
- The dividend of WCN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.01%
EPS Next 2Y10.82%
EPS Next 3Y11.2%
WCN Fundamentals: All Metrics, Ratios and Statistics
166.08
+3.26 (+2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-11 2026-02-11/amc
Earnings (Next)04-22 2026-04-22/amc
Inst Owners90.22%
Inst Owner Change2.31%
Ins Owners0.12%
Ins Owner Change4.91%
Market Cap42.46B
Revenue(TTM)9.47B
Net Income(TTM)1.08B
Analysts83
Price Target149.42 (-10.03%)
Short Float %0.7%
Short Ratio1.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.3
Dividend Growth(5Y)11.37%
DP31.01%
Div Incr Years3
Div Non Decr Years3
Ex-Date02-25 2026-02-25 (0.35)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-0.31%
Max EPS beat(2)3.11%
EPS beat(4)3
Avg EPS beat(4)1.65%
Min EPS beat(4)-0.31%
Max EPS beat(4)3.11%
EPS beat(8)6
Avg EPS beat(8)1.47%
EPS beat(12)9
Avg EPS beat(12)1.17%
EPS beat(16)11
Avg EPS beat(16)1.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)-0.45%
Revenue beat(8)2
Avg Revenue beat(8)-0.2%
Revenue beat(12)2
Avg Revenue beat(12)-0.36%
Revenue beat(16)5
Avg Revenue beat(16)-0.21%
PT rev (1m)0%
PT rev (3m)0.31%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-4.93%
EPS NY rev (1m)-4.52%
EPS NY rev (3m)-4.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.25 | ||
| Fwd PE | 30.26 | ||
| P/S | 4.49 | ||
| P/FCF | 34.81 | ||
| P/OCF | 17.59 | ||
| P/B | 5.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.66 |
EPS(TTM)5.15
EY3.1%
EPS(NY)5.49
Fwd EY3.3%
FCF(TTM)4.77
FCFY2.87%
OCF(TTM)9.44
OCFY5.69%
SpS37.03
BVpS32.25
TBVpS-8.42
PEG (NY)4.91
PEG (5Y)2.27
Graham Number61.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 13.06% | ||
| ROCE | 9.7% | ||
| ROIC | 7.6% | ||
| ROICexc | 7.62% | ||
| ROICexgc | 16.88% | ||
| OM | 19.48% | ||
| PM (TTM) | 11.37% | ||
| GM | 42.37% | ||
| FCFM | 12.88% |
ROA(3y)4.16%
ROA(5y)4.31%
ROE(3y)10.28%
ROE(5y)10.29%
ROIC(3y)7.41%
ROIC(5y)7%
ROICexc(3y)7.44%
ROICexc(5y)7.03%
ROICexgc(3y)16.68%
ROICexgc(5y)15.84%
ROCE(3y)9.46%
ROCE(5y)8.93%
ROICexgc growth 3Y5.3%
ROICexgc growth 5Y5.84%
ROICexc growth 3Y5.56%
ROICexc growth 5Y6.23%
OM growth 3Y3.01%
OM growth 5Y3.6%
PM growth 3Y-0.62%
PM growth 5Y24.78%
GM growth 3Y2.05%
GM growth 5Y1.25%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.23 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 96.94% | ||
| Cap/Sales | 12.62% | ||
| Interest Coverage | 5.98 | ||
| Cash Conversion | 78.48% | ||
| Profit Quality | 113.3% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 3.01 |
F-Score6
WACC8.51%
ROIC/WACC0.89
Cap/Depr(3y)93.59%
Cap/Depr(5y)94.33%
Cap/Sales(3y)12.03%
Cap/Sales(5y)12.17%
Profit Quality(3y)153.2%
Profit Quality(5y)149.35%
High Growth Momentum
Growth
EPS 1Y (TTM)7.52%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%11.21%
EPS Next Y6.56%
EPS Next 2Y10.82%
EPS Next 3Y11.2%
EPS Next 5Y9.22%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%5%
Revenue Next Year5.2%
Revenue Next 2Y5.67%
Revenue Next 3Y5.81%
Revenue Next 5Y5.74%
EBIT growth 1Y8.05%
EBIT growth 3Y12.78%
EBIT growth 5Y15.71%
EBIT Next Year80.66%
EBIT Next 3Y28.11%
EBIT Next 5Y19.08%
FCF growth 1Y3.99%
FCF growth 3Y3.2%
FCF growth 5Y10.39%
OCF growth 1Y8.31%
OCF growth 3Y6.08%
OCF growth 5Y11.38%
WASTE CONNECTIONS INC / WCN Fundamental Analysis 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.
How profitable is WASTE CONNECTIONS INC (WCN) stock?
WASTE CONNECTIONS INC (WCN) has a profitability rating of 8 / 10.
How financially healthy is WASTE CONNECTIONS INC?
The financial health rating of WASTE CONNECTIONS INC (WCN) is 3 / 10.
How sustainable is the dividend of WASTE CONNECTIONS INC (WCN) stock?
The dividend rating of WASTE CONNECTIONS INC (WCN) is 5 / 10 and the dividend payout ratio is 31.01%.