WASTE CONNECTIONS INC (WCN)
CA94106B1013 - Common Stock
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 scores excellent on profitability, but 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.
WCN had a positive operating cash flow in the past year.
Each year in the past 5 years WCN has been profitable.
Each year in the past 5 years WCN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WCN (4.68%) is better than 65.48% of its industry peers.
The Return On Equity of WCN (11.38%) is better than 67.86% of its industry peers.
WCN has a Return On Invested Capital of 7.29%. This is in the better half of the industry: WCN outperforms 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WCN is below the industry average of 9.90%.
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 has a better Profit Margin (10.81%) than 85.71% of its industry peers.
In the last couple of years the Profit Margin of WCN has declined.
WCN has a better Operating Margin (19.57%) than 90.48% of its industry peers.
In the last couple of years the Operating Margin of WCN has remained more or less at the same level.
WCN has a Gross Margin of 41.78%. This is in the better half of the industry: WCN outperforms 76.19% 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 | 19.57% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WCN is creating some value.
The number of shares outstanding for WCN remains at a similar level compared to 1 year ago.
WCN has less shares outstanding than it did 5 years ago.
WCN has a better debt/assets ratio than last year.
2.2 Solvency
WCN has an Altman-Z score of 3.49. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.49, WCN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of WCN is 6.60, which is on the high side as it means it would take WCN, 6.60 years of fcf income to pay off all of its debts.
WCN has a Debt to FCF ratio of 6.60. This is in the better half of the industry: WCN outperforms 60.71% 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 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 3.49 |
ROIC/WACC1.01
WACC7.23%
2.3 Liquidity
WCN has a Current Ratio of 0.77. 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 Current ratio of 0.77 is on the low side compared to the rest of the industry. WCN is outperformed by 89.29% of its industry peers.
WCN has a Quick Ratio of 0.77. 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 Quick ratio, with a value of 0.77, WCN is doing worse than 84.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.40% over the past year.
Measured over the past years, WCN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.62% on average per year.
The Revenue has grown by 10.68% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 13.58% on average over the next years. This is quite good.
WCN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.69% yearly.
EPS Next Y16.43%
EPS Next 2Y14.53%
EPS Next 3Y13.75%
EPS Next 5Y13.58%
Revenue Next Year11.16%
Revenue Next 2Y9.38%
Revenue Next 3Y8.62%
Revenue Next 5Y8.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 40.14, 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 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 34.62, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, WCN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.14 | ||
| Fwd PE | 34.62 |
4.2 Price Multiples
60.71% of the companies in the same industry are cheaper than WCN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as WCN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.66 | ||
| EV/EBITDA | 20.32 |
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.
A more expensive valuation may be justified as WCN's earnings are expected to grow with 13.75% in the coming years.
PEG (NY)2.44
PEG (5Y)3.78
EPS Next 2Y14.53%
EPS Next 3Y13.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, WCN is not a good candidate for dividend investing.
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 0.68, WCN pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
On average, the dividend of WCN grows each year by 12.63%, which is quite nice.
WCN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of WCN decreased in the last 3 years.
Dividend Growth(5Y)12.63%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
31.38% of the earnings are spent on dividend by WCN. This is a low number and 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 (11/22/2024, 10:32:48 AM)
190.28
+1.27 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap49.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.14 | ||
| Fwd PE | 34.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.44
PEG (5Y)3.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 11.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.57% | ||
| PM (TTM) | 10.81% | ||
| GM | 41.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)19.4%
EPS 3Y16.5%
EPS 5Y
EPS Q2Q%
EPS Next Y16.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.68%
Revenue growth 3Y13.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y