WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WCN • CA94106B1013
167.025 USD
-0.2 (-0.12%)
Last: Jan 30, 2026, 09:35 AM
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. While WCN belongs to the best of the industry regarding profitability, 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.
- WCN had positive earnings in each of the past 5 years.
- In the past 5 years WCN always reported a positive cash flow from operatings.
1.2 Ratios
- WCN has a better Return On Assets (2.99%) than 62.50% of its industry peers.
- WCN's Return On Equity of 7.69% is fine compared to the rest of the industry. WCN outperforms 65.00% of its industry peers.
- With a decent Return On Invested Capital value of 7.55%, WCN is doing good in the industry, outperforming 67.50% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for WCN is below the industry average of 10.58%.
- 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
- Looking at the Profit Margin, with a value of 6.65%, WCN is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
- 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.
- WCN's Operating Margin has improved in the last couple of years.
- WCN has a better Gross Margin (42.10%) than 76.25% of its industry peers.
- 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 | 19.06% | ||
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WCN is destroying value.
- WCN has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, WCN has less shares outstanding
- The debt/assets ratio for WCN is higher compared to a year ago.
2.2 Solvency
- WCN has an Altman-Z score of 3.06. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
- WCN's Altman-Z score of 3.06 is fine compared to the rest of the industry. WCN outperforms 66.25% of its industry peers.
- 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.
- The Debt to FCF ratio of WCN (6.99) is better than 67.50% 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.
- With a Debt to Equity ratio value of 1.07, WCN is not doing good in the industry: 71.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.94
WACC8.06%
2.3 Liquidity
- A Current Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
- WCN has a Current ratio of 0.67. This is amonst the worse of the industry: WCN underperforms 86.25% 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.
- With a Quick ratio value of 0.67, WCN is not doing good in the industry: 81.25% 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%.
- 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.
- The Revenue has been growing by 10.60% on average over the past years. This is quite good.
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.
- Based on estimates for the next years, WCN will show a small growth in Revenue. The Revenue will grow by 6.76% on average per year.
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.
- 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
- Based on the Price/Earnings ratio of 33.27, the valuation of WCN can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of WCN is on the same level as its industry peers.
- WCN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.39.
- Based on the Price/Forward Earnings ratio of 29.06, the valuation of WCN can be described as expensive.
- 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 25.72. WCN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.27 | ||
| Fwd PE | 29.06 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WCN.
- 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 | 34.64 | ||
| EV/EBITDA | 17.01 |
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)3.96
PEG (5Y)2.8
EPS Next 2Y9.54%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
- WCN has a yearly dividend return of 0.78%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.82, WCN pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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.
- The dividend of WCN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.24%
EPS Next 2Y9.54%
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 33.27 and the Price/Book (PB) ratio is 5.28.
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%.