WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
TSX:WCN • CA94106B1013
234.73 CAD
+3.05 (+1.32%)
Last: Feb 27, 2026, 07:00 PM
Overall WCN gets a fundamental rating of 5 out of 10. We evaluated WCN against 25 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 expensive and it does not seem to be growing.
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
- Looking at the Return On Assets, with a value of 2.99%, WCN is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
- WCN has a better Return On Equity (7.69%) than 68.00% of its industry peers.
- WCN has a better Return On Invested Capital (7.55%) than 84.00% of its industry peers.
- WCN had an Average Return On Invested Capital over the past 3 years of 7.10%. This is in line with the industry average of 5.81%.
- 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
- With a decent Profit Margin value of 6.65%, WCN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- WCN's Profit Margin has declined in the last couple of years.
- WCN has a Operating Margin of 19.06%. This is amongst the best in the industry. WCN outperforms 96.00% of its industry peers.
- WCN's Operating Margin has improved in the last couple of years.
- The Gross Margin of WCN (42.10%) is better than 80.00% 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 less shares outstanding than it did 1 year ago.
- WCN has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for WCN is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.08 indicates that WCN is not in any danger for bankruptcy at the moment.
- WCN's Altman-Z score of 3.08 is amongst the best of the industry. WCN outperforms 84.00% of its industry peers.
- WCN has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as WCN would need 6.99 years to pay back of all of its debts.
- WCN's Debt to FCF ratio of 6.99 is fine compared to the rest of the industry. WCN outperforms 64.00% 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.
- WCN's Debt to Equity ratio of 1.07 is in line compared to the rest of the industry. WCN outperforms 52.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.94
WACC8.01%
2.3 Liquidity
- A Current Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
- With a Current ratio value of 0.67, WCN is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
- A Quick Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
- The Quick ratio of WCN (0.67) is worse than 60.00% of its industry peers.
| 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 7.52%.
- The Earnings Per Share has been growing by 14.21% on average over the past years. This is quite good.
EPS 1Y (TTM)7.52%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%11.21%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5%
3.2 Future
- The Earnings Per Share is expected to grow by 8.51% 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 6.26% yearly.
EPS Next Y11.61%
EPS Next 2Y12.62%
EPS Next 3Y13.89%
EPS Next 5Y8.51%
Revenue Next Year5.78%
Revenue Next 2Y6.14%
Revenue Next 3Y7.08%
Revenue Next 5Y6.26%
3.3 Evolution
- The EPS 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
- With a Price/Earnings ratio of 33.34, WCN can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of WCN indicates a somewhat cheap valuation: WCN is cheaper than 68.00% of the companies listed in the same industry.
- WCN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.10.
- With a Price/Forward Earnings ratio of 29.86, WCN can be considered very expensive at the moment.
- WCN's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. WCN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.34 | ||
| Fwd PE | 29.86 |
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 | 35.6 | ||
| EV/EBITDA | 17.19 |
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 13.89% in the coming years.
PEG (NY)2.87
PEG (5Y)2.35
EPS Next 2Y12.62%
EPS Next 3Y13.89%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.81%, WCN is not a good candidate for dividend investing.
- WCN's Dividend Yield is a higher than the industry average which is at 1.03.
- With a Dividend Yield of 0.81, WCN pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
- The dividend of WCN is nicely growing with an annual growth rate of 11.37%!
- WCN has been paying a dividend for at least 10 years, so it has a reliable track record.
- As WCN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.37%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 52.24% of the earnings are spent on dividend by WCN. 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 2Y12.62%
EPS Next 3Y13.89%
TSX:WCN (2/27/2026, 7:00:00 PM)
234.73
+3.05 (+1.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-11 2026-02-11/amc
Earnings (Next)04-21 2026-04-21/amc
Inst Owners89.12%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap60.10B
Revenue(TTM)N/A
Net Income(TTM)622.05M
Analysts83
Price Target204.55 (-12.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.78
Dividend Growth(5Y)11.37%
DP52.24%
Div Incr Years7
Div Non Decr Years7
Ex-Date02-25 2026-02-25 (0.35)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.57%
Min EPS beat(2)2.03%
Max EPS beat(2)3.11%
EPS beat(4)3
Avg EPS beat(4)0.47%
Min EPS beat(4)-5.03%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)1.66%
EPS beat(12)9
Avg EPS beat(12)1.16%
EPS beat(16)12
Avg EPS beat(16)1.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)-0.25%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)3
Avg Revenue beat(12)-0.28%
Revenue beat(16)6
Avg Revenue beat(16)-0.06%
PT rev (1m)1.39%
PT rev (3m)-27.69%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.34 | ||
| Fwd PE | 29.86 | ||
| P/S | 4.7 | ||
| P/FCF | 35.6 | ||
| P/OCF | 18.11 | ||
| P/B | 5.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.19 |
EPS(TTM)7.04
EY3%
EPS(NY)7.86
Fwd EY3.35%
FCF(TTM)6.59
FCFY2.81%
OCF(TTM)12.96
OCFY5.52%
SpS49.96
BVpS43.23
TBVpS-11.67
PEG (NY)2.87
PEG (5Y)2.35
Graham Number82.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 7.69% | ||
| ROCE | 9.54% | ||
| ROIC | 7.55% | ||
| ROICexc | 7.6% | ||
| ROICexgc | 17.01% | ||
| OM | 19.06% | ||
| PM (TTM) | 6.65% | ||
| GM | 42.1% | ||
| FCFM | 13.2% |
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%
ROICexgc growth 3Y4.71%
ROICexgc 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-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 96.51% | ||
| Cap/Sales | 12.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.4% | ||
| Profit Quality | 198.46% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.08 |
F-Score6
WACC8.01%
ROIC/WACC0.94
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)7.52%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%11.21%
EPS Next Y11.61%
EPS Next 2Y12.62%
EPS Next 3Y13.89%
EPS Next 5Y8.51%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5%
Revenue Next Year5.78%
Revenue Next 2Y6.14%
Revenue Next 3Y7.08%
Revenue Next 5Y6.26%
EBIT growth 1Y4.81%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year77.97%
EBIT Next 3Y27.4%
EBIT Next 5Y19.26%
FCF growth 1Y4.33%
FCF growth 3Y7.13%
FCF growth 5Y6.05%
OCF growth 1Y15.9%
OCF growth 3Y9.49%
OCF growth 5Y7.67%
WASTE CONNECTIONS INC / WCN.CA FAQ
What is the ChartMill fundamental rating of WASTE CONNECTIONS INC (WCN.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to WCN.CA.
What is the valuation status of WASTE CONNECTIONS INC (WCN.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to WASTE CONNECTIONS INC (WCN.CA). This can be considered as Overvalued.
What is the profitability of WCN stock?
WASTE CONNECTIONS INC (WCN.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of WASTE CONNECTIONS INC (WCN.CA) stock?
The Price/Earnings (PE) ratio for WASTE CONNECTIONS INC (WCN.CA) is 33.34 and the Price/Book (PB) ratio is 5.43.
Can you provide the dividend sustainability for WCN stock?
The dividend rating of WASTE CONNECTIONS INC (WCN.CA) is 5 / 10 and the dividend payout ratio is 52.24%.