WASTE CONNECTIONS INC (WCN)
CA94106B1013 - Common Stock
WCN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. While WCN has a great profitability rating, there are some minor concerns on its financial health. WCN is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
WCN had positive earnings in the past year.
In the past year WCN had a positive cash flow from operations.
In the past 5 years WCN has always been profitable.
WCN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WCN has a better Return On Assets (4.68%) than 66.27% of its industry peers.
WCN has a Return On Equity of 11.38%. This is in the better half of the industry: WCN outperforms 71.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.29%, WCN is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WCN is below the industry average of 10.07%.
The last Return On Invested Capital (7.29%) for WCN is above the 3 year average (6.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 11.38% | ||
| ROIC | 7.29% |
ROA(3y)4.45%
ROA(5y)3.79%
ROE(3y)10.17%
ROE(5y)8.33%
ROIC(3y)6.66%
ROIC(5y)6.2%
1.3 Margins
WCN's Profit Margin of 10.81% is amongst the best of the industry. WCN outperforms 85.54% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
The Operating Margin of WCN (19.57%) is better than 90.36% of its industry peers.
WCN's Operating Margin has been stable in the last couple of years.
WCN has a Gross Margin of 41.78%. This is in the better half of the industry: WCN outperforms 74.70% of its industry peers.
WCN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.57% | ||
| PM (TTM) | 10.81% | ||
| GM | 41.78% |
OM growth 3Y4.3%
OM growth 5Y1.27%
PM growth 3Y36.26%
PM growth 5Y-3.06%
GM growth 3Y0.85%
GM growth 5Y-0.4%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WCN is still creating some value.
WCN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WCN has been reduced compared to 5 years ago.
The debt/assets ratio for WCN has been reduced compared to a year ago.
2.2 Solvency
WCN has an Altman-Z score of 3.30. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.30, WCN is doing good in the industry, outperforming 67.47% of the companies in the same industry.
WCN has a debt to FCF ratio of 6.60. This is a slightly negative value and a sign of low solvency as WCN would need 6.60 years to pay back of all of its debts.
The Debt to FCF ratio of WCN (6.60) is better than 60.24% of its industry peers.
WCN has a Debt/Equity ratio of 0.99. This is a neutral value indicating WCN is somewhat dependend on debt financing.
The Debt to Equity ratio of WCN (0.99) is worse than 63.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 3.3 |
ROIC/WACC1
WACC7.27%
2.3 Liquidity
A Current Ratio of 0.77 indicates that WCN may have some problems paying its short term obligations.
WCN has a worse Current ratio (0.77) than 87.95% of its industry peers.
A Quick Ratio of 0.77 indicates that WCN may have some problems paying its short term obligations.
The Quick ratio of WCN (0.77) is worse than 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
WCN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.40%, which is quite good.
The Earnings Per Share has been growing by 10.62% on average over the past years. This is quite good.
Looking at the last year, WCN shows a quite strong growth in Revenue. The Revenue has grown by 10.68% in the last year.
The Revenue has been growing by 10.26% on average over the past years. This is quite good.
EPS 1Y (TTM)19.4%
EPS 3Y16.5%
EPS 5Y10.62%
EPS Q2Q%15.38%
Revenue 1Y (TTM)10.68%
Revenue growth 3Y13.78%
Revenue growth 5Y10.26%
Sales Q2Q%13.26%
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 13.53% on average per year.
The Revenue is expected to grow by 8.80% on average over the next years. This is quite good.
EPS Next Y16.43%
EPS Next 2Y14.53%
EPS Next 3Y13.75%
EPS Next 5Y13.53%
Revenue Next Year11.17%
Revenue Next 2Y9.36%
Revenue Next 3Y8.58%
Revenue Next 5Y8.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.77, which means the current valuation is very expensive for WCN.
WCN's Price/Earnings ratio is in line with the industry average.
WCN is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 31.71, the valuation of WCN can be described as expensive.
WCN's Price/Forward Earnings is on the same level as the industry average.
WCN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.77 | ||
| Fwd PE | 31.71 |
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 | 36.32 | ||
| EV/EBITDA | 18.96 |
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.
A more expensive valuation may be justified as WCN's earnings are expected to grow with 13.75% in the coming years.
PEG (NY)2.24
PEG (5Y)3.46
EPS Next 2Y14.53%
EPS Next 3Y13.75%
5. Dividend
5.1 Amount
WCN has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 2.10, WCN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.70, WCN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
On average, the dividend of WCN grows each year by 12.63%, 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)12.63%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WCN pays out 31.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of WCN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP31.38%
EPS Next 2Y14.53%
EPS Next 3Y13.75%
WASTE CONNECTIONS INC
NYSE:WCN (12/20/2024, 8:04:00 PM)
After market: 174.28 0 (0%)174.28
+0.15 (+0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.14%
Inst Owner Change-0.29%
Ins Owners0.14%
Ins Owner Change-4.47%
Market Cap44.97B
Analysts74.74
Price Target193.69 (11.14%)
Short Float %0.86%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Dividend Growth(5Y)12.63%
DP31.38%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.68%
Min EPS beat(2)2.46%
Max EPS beat(2)4.9%
EPS beat(4)4
Avg EPS beat(4)2.86%
Min EPS beat(4)1.25%
Max EPS beat(4)4.9%
EPS beat(8)6
Avg EPS beat(8)1.5%
EPS beat(12)9
Avg EPS beat(12)1.72%
EPS beat(16)13
Avg EPS beat(16)2.48%
Revenue beat(2)2
Avg Revenue beat(2)0.62%
Min Revenue beat(2)0.41%
Max Revenue beat(2)0.84%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)0.84%
Revenue beat(8)3
Avg Revenue beat(8)-0.17%
Revenue beat(12)6
Avg Revenue beat(12)0.09%
Revenue beat(16)10
Avg Revenue beat(16)0.44%
PT rev (1m)-0.4%
PT rev (3m)34.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)0%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.77 | ||
| Fwd PE | 31.71 | ||
| P/S | 5.17 | ||
| P/FCF | 36.32 | ||
| P/OCF | 20.3 | ||
| P/B | 5.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.96 |
EPS(TTM)4.74
EY2.72%
EPS(NY)5.5
Fwd EY3.15%
FCF(TTM)4.8
FCFY2.75%
OCF(TTM)8.59
OCFY4.93%
SpS33.69
BVpS32.01
TBVpS-6.37
PEG (NY)2.24
PEG (5Y)3.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 11.38% | ||
| ROCE | 9.28% | ||
| ROIC | 7.29% | ||
| ROICexc | 7.34% | ||
| ROICexgc | 16.08% | ||
| OM | 19.57% | ||
| PM (TTM) | 10.81% | ||
| GM | 41.78% | ||
| FCFM | 14.24% |
ROA(3y)4.45%
ROA(5y)3.79%
ROE(3y)10.17%
ROE(5y)8.33%
ROIC(3y)6.66%
ROIC(5y)6.2%
ROICexc(3y)6.71%
ROICexc(5y)6.31%
ROICexgc(3y)15.2%
ROICexgc(5y)14.17%
ROCE(3y)8.48%
ROCE(5y)7.89%
ROICexcg growth 3Y8.66%
ROICexcg growth 5Y5.11%
ROICexc growth 3Y8.56%
ROICexc growth 5Y4.22%
OM growth 3Y4.3%
OM growth 5Y1.27%
PM growth 3Y36.26%
PM growth 5Y-3.06%
GM growth 3Y0.85%
GM growth 5Y-0.4%
F-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 6.6 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 89.28% | ||
| Cap/Sales | 11.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.25% | ||
| Profit Quality | 131.68% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.3 |
F-Score5
WACC7.27%
ROIC/WACC1
Cap/Depr(3y)94.66%
Cap/Depr(5y)92.37%
Cap/Sales(3y)12.13%
Cap/Sales(5y)12.19%
Profit Quality(3y)147.84%
Profit Quality(5y)192.24%
High Growth Momentum
Growth
EPS 1Y (TTM)19.4%
EPS 3Y16.5%
EPS 5Y10.62%
EPS Q2Q%15.38%
EPS Next Y16.43%
EPS Next 2Y14.53%
EPS Next 3Y13.75%
EPS Next 5Y13.53%
Revenue 1Y (TTM)10.68%
Revenue growth 3Y13.78%
Revenue growth 5Y10.26%
Sales Q2Q%13.26%
Revenue Next Year11.17%
Revenue Next 2Y9.36%
Revenue Next 3Y8.58%
Revenue Next 5Y8.8%
EBIT growth 1Y21.08%
EBIT growth 3Y18.68%
EBIT growth 5Y11.66%
EBIT Next Year97.25%
EBIT Next 3Y32.83%
EBIT Next 5Y22.82%
FCF growth 1Y18.46%
FCF growth 3Y17.05%
FCF growth 5Y6.63%
OCF growth 1Y14.91%
OCF growth 3Y14.72%
OCF growth 5Y8.55%