WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
Canada - TSX:WCN - CA94106B1013 - Common Stock
240.08 CAD
+1.24 (+0.52%)
WCN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 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
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.
In the past 5 years WCN always reported a positive cash flow from operatings.
1.2 Ratios
WCN's Return On Assets of 3.11% is fine compared to the rest of the industry. WCN outperforms 79.17% of its industry peers.
The Return On Equity of WCN (7.71%) is better than 70.83% of its industry peers.
WCN has a Return On Invested Capital of 7.49%. This is amongst the best in the industry. WCN outperforms 83.33% 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 7.32%.
The 3 year average ROIC (7.10%) for WCN is below the current ROIC(7.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 7.71% | ||
| ROIC | 7.49% |
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
WCN has a Profit Margin of 6.97%. This is in the better half of the industry: WCN outperforms 75.00% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
The Operating Margin of WCN (19.12%) is better than 95.83% of its industry peers.
WCN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 42.03%, WCN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
WCN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.12% | ||
| PM (TTM) | 6.97% | ||
| GM | 42.03% |
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.
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.
Compared to 1 year ago, WCN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.17 indicates that WCN is not in any danger for bankruptcy at the moment.
WCN has a better Altman-Z score (3.17) than 79.17% of its industry peers.
WCN has a debt to FCF ratio of 7.32. This is a slightly negative value and a sign of low solvency as WCN would need 7.32 years to pay back of all of its debts.
The Debt to FCF ratio of WCN (7.32) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.00 indicates that WCN is somewhat dependend on debt financing.
The Debt to Equity ratio of WCN (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.91
WACC8.23%
2.3 Liquidity
WCN has a Current 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.
Looking at the Current ratio, with a value of 0.67, WCN is doing worse than 70.83% of the companies in the same industry.
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: 70.83% 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
The Earnings Per Share has grown by an nice 8.11% over the past year.
WCN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.90% yearly.
Looking at the last year, WCN shows a quite strong growth in Revenue. The Revenue has grown by 9.65% in the last year.
Measured over the past years, WCN shows a quite strong growth in Revenue. The Revenue has been growing by 10.60% on average per year.
EPS 1Y (TTM)8.11%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%4.03%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%7.07%
3.2 Future
The Earnings Per Share is expected to grow by 11.90% on average over the next years. This is quite good.
Based on estimates for the next years, WCN will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.
EPS Next Y7.69%
EPS Next 2Y10.63%
EPS Next 3Y11.52%
EPS Next 5Y11.9%
Revenue Next Year6.38%
Revenue Next 2Y6.7%
Revenue Next 3Y6.92%
Revenue Next 5Y7.57%
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.
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.90, which means the current valuation is very expensive for WCN.
62.50% of the companies in the same industry are more expensive than WCN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.54. WCN is valued slightly more expensive when compared to this.
WCN is valuated quite expensively with a Price/Forward Earnings ratio of 29.36.
The rest of the industry has a similar Price/Forward Earnings ratio as WCN.
WCN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.9 | ||
| Fwd PE | 29.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WCN is on the same level as its industry peers.
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 | 38.81 | ||
| EV/EBITDA | 17.62 |
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.
PEG (NY)4.54
PEG (5Y)2.93
EPS Next 2Y10.63%
EPS Next 3Y11.52%
5. Dividend
5.1 Amount
WCN has a yearly dividend return of 0.76%, which is pretty low.
WCN's Dividend Yield is a higher than the industry average which is at 2.39.
Compared to an average S&P500 Dividend Yield of 2.41, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of WCN grows each year by 12.03%, which is quite nice.
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)12.03%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
49.38% 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.
DP49.38%
EPS Next 2Y10.63%
EPS Next 3Y11.52%
TSX:WCN (9/26/2025, 7:00:00 PM)
240.08
+1.24 (+0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.89%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap61.73B
Analysts81.18
Price Target285.73 (19.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.64
Dividend Growth(5Y)12.03%
DP49.38%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.89%
Min EPS beat(2)1.76%
Max EPS beat(2)2.03%
EPS beat(4)3
Avg EPS beat(4)0.3%
Min EPS beat(4)-5.03%
Max EPS beat(4)2.46%
EPS beat(8)7
Avg EPS beat(8)1.43%
EPS beat(12)9
Avg EPS beat(12)1.43%
EPS beat(16)12
Avg EPS beat(16)1.43%
Revenue beat(2)0
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)0.84%
Revenue beat(8)2
Avg Revenue beat(8)-0.22%
Revenue beat(12)3
Avg Revenue beat(12)-0.28%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)0%
PT rev (3m)0.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-3.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.9 | ||
| Fwd PE | 29.36 | ||
| P/S | 4.79 | ||
| P/FCF | 38.81 | ||
| P/OCF | 19.18 | ||
| P/B | 5.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.62 |
EPS(TTM)6.88
EY2.87%
EPS(NY)8.18
Fwd EY3.41%
FCF(TTM)6.19
FCFY2.58%
OCF(TTM)12.52
OCFY5.21%
SpS50.09
BVpS45.32
TBVpS-10.47
PEG (NY)4.54
PEG (5Y)2.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 7.71% | ||
| ROCE | 9.45% | ||
| ROIC | 7.49% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 16.88% | ||
| OM | 19.12% | ||
| PM (TTM) | 6.97% | ||
| GM | 42.03% | ||
| FCFM | 12.35% |
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%
ROICexcg growth 3Y4.71%
ROICexcg 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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 96.17% | ||
| Cap/Sales | 12.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.45% | ||
| Profit Quality | 177.13% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.17 |
F-Score5
WACC8.23%
ROIC/WACC0.91
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)8.11%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%4.03%
EPS Next Y7.69%
EPS Next 2Y10.63%
EPS Next 3Y11.52%
EPS Next 5Y11.9%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%7.07%
Revenue Next Year6.38%
Revenue Next 2Y6.7%
Revenue Next 3Y6.92%
Revenue Next 5Y7.57%
EBIT growth 1Y8.5%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year78.14%
EBIT Next 3Y28.33%
EBIT Next 5Y19.74%
FCF growth 1Y0.91%
FCF growth 3Y7.13%
FCF growth 5Y6.05%
OCF growth 1Y11.69%
OCF growth 3Y9.49%
OCF growth 5Y7.67%