WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
Canada - TSX:WCN - CA94106B1013 - Common Stock
247.45 CAD
+0.08 (+0.03%)
We assign a fundamental rating of 5 out of 10 to WCN. WCN was compared to 24 industry peers in the Commercial Services & Supplies industry. While WCN has a great profitability rating, there are quite some 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.
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
WCN has a Return On Assets of 3.11%. This is in the better half 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's Return On Invested Capital of 7.49% is amongst the best of the industry. WCN outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WCN is in line with the industry average of 7.08%.
The last Return On Invested Capital (7.49%) for WCN is above the 3 year average (7.10%), which is a sign of increasing profitability.
| 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 better Profit Margin (6.97%) than 75.00% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
WCN's Operating Margin of 19.12% is amongst the best of the industry. WCN outperforms 95.83% of its industry peers.
In the last couple of years the Operating Margin of WCN has grown nicely.
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.
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 | 19.12% | ||
| 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
WCN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WCN has about the same amout of shares outstanding than it did 1 year ago.
WCN has less shares outstanding than it did 5 years ago.
WCN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.23 indicates that WCN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.23, WCN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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.
WCN has a Debt to FCF ratio (7.32) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.00 indicates that WCN is somewhat dependend on debt financing.
WCN's Debt to Equity ratio of 1.00 is in line compared to the rest of the industry. WCN outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.93
WACC8.09%
2.3 Liquidity
A Current Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.67, WCN is doing worse than 66.67% 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.
Looking at the Quick ratio, with a value of 0.67, WCN is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.91% over the past year.
The Earnings Per Share has been growing by 11.90% 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 11.19% 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)5.91%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%6.67%
Revenue 1Y (TTM)11.19%
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 11.36% yearly.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y7.69%
EPS Next 2Y10.63%
EPS Next 3Y11.52%
EPS Next 5Y11.36%
Revenue Next Year6.34%
Revenue Next 2Y6.64%
Revenue Next 3Y6.78%
Revenue Next 5Y7.45%
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
Based on the Price/Earnings ratio of 35.15, the valuation of WCN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WCN indicates a somewhat cheap valuation: WCN is cheaper than 62.50% of the companies listed in the same industry.
WCN is valuated rather expensively when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.10 indicates a quite expensive valuation of WCN.
WCN's Price/Forward Earnings is on the same level as the industry average.
WCN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.15 | ||
| Fwd PE | 30.1 |
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.
WCN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.78 | ||
| EV/EBITDA | 17.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WCN may justify a higher PE ratio.
PEG (NY)4.57
PEG (5Y)2.95
EPS Next 2Y10.63%
EPS Next 3Y11.52%
5. Dividend
5.1 Amount
WCN has a yearly dividend return of 0.73%, which is pretty low.
WCN's Dividend Yield is a higher than the industry average which is at 2.35.
Compared to an average S&P500 Dividend Yield of 2.31, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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 past 5 years, so it has a somewhat stable track record.
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 (10/24/2025, 7:00:00 PM)
247.45
+0.08 (+0.03%)
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 Cap63.62B
Revenue(TTM)8.92B
Net Income(TTM)643.83M
Analysts82.22
Price Target283.53 (14.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)-0.77%
PT rev (3m)-0.95%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-6.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.24%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.15 | ||
| Fwd PE | 30.1 | ||
| P/S | 4.91 | ||
| P/FCF | 39.78 | ||
| P/OCF | 19.66 | ||
| P/B | 5.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.99 |
EPS(TTM)7.04
EY2.85%
EPS(NY)8.22
Fwd EY3.32%
FCF(TTM)6.22
FCFY2.51%
OCF(TTM)12.58
OCFY5.09%
SpS50.37
BVpS45.57
TBVpS-10.52
PEG (NY)4.57
PEG (5Y)2.95
Graham Number84.96
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%
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-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 | 3.23 |
F-Score5
WACC8.09%
ROIC/WACC0.93
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)5.91%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%6.67%
EPS Next Y7.69%
EPS Next 2Y10.63%
EPS Next 3Y11.52%
EPS Next 5Y11.36%
Revenue 1Y (TTM)11.19%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%5.13%
Revenue Next Year6.34%
Revenue Next 2Y6.64%
Revenue Next 3Y6.78%
Revenue Next 5Y7.45%
EBIT growth 1Y8.5%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year78.14%
EBIT Next 3Y28.33%
EBIT Next 5Y19.99%
FCF growth 1Y0.91%
FCF growth 3Y7.13%
FCF growth 5Y6.05%
OCF growth 1Y11.69%
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 5 / 10 to WCN.CA.
Can you provide the valuation status for WASTE CONNECTIONS INC?
ChartMill assigns a valuation rating of 2 / 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 is the financial health of WASTE CONNECTIONS INC (WCN.CA) stock?
The financial health rating of WASTE CONNECTIONS INC (WCN.CA) is 3 / 10.
Is the dividend of WASTE CONNECTIONS INC sustainable?
The dividend rating of WASTE CONNECTIONS INC (WCN.CA) is 5 / 10 and the dividend payout ratio is 49.38%.