WASTE CONNECTIONS INC (WCN.CA) Fundamental Analysis & Valuation
TSX:WCN • CA94106B1013
Current stock price
219 CAD
-4.76 (-2.13%)
Last:
This WCN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. WCN.CA Profitability Analysis
1.1 Basic Checks
- In the past year WCN was profitable.
- 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
- The Return On Assets of WCN (4.98%) is better than 82.61% of its industry peers.
- The Return On Equity of WCN (13.09%) is better than 78.26% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.69%, WCN belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for WCN is in line with the industry average of 6.34%.
- The 3 year average ROIC (7.41%) for WCN is below the current ROIC(7.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 13.09% | ||
| ROIC | 7.69% |
ROA(3y)4.16%
ROA(5y)4.31%
ROE(3y)10.28%
ROE(5y)10.29%
ROIC(3y)7.41%
ROIC(5y)7%
1.3 Margins
- WCN has a better Profit Margin (10.97%) than 86.96% of its industry peers.
- In the last couple of years the Profit Margin of WCN has grown nicely.
- The Operating Margin of WCN (19.58%) is better than 95.65% of its industry peers.
- WCN's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 42.50%, WCN is doing good in the industry, outperforming 73.91% 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 | 19.58% | ||
| PM (TTM) | 10.97% | ||
| GM | 42.5% |
OM growth 3Y3.01%
OM growth 5Y3.6%
PM growth 3Y-0.62%
PM growth 5Y24.78%
GM growth 3Y2.05%
GM growth 5Y1.25%
2. WCN.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WCN is destroying value.
- Compared to 1 year ago, WCN has less shares outstanding
- Compared to 5 years ago, WCN has less shares outstanding
- Compared to 1 year ago, WCN has a worse debt to assets ratio.
2.2 Solvency
- WCN has an Altman-Z score of 2.97. This is not the best score and indicates that WCN is in the grey zone with still only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 2.97, WCN belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- The Debt to FCF ratio of WCN is 7.99, which is on the high side as it means it would take WCN, 7.99 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.99, WCN is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
- A Debt/Equity ratio of 1.13 is on the high side and indicates that WCN has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.13, WCN perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 7.99 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.89
WACC8.61%
2.3 Liquidity
- A Current Ratio of 0.69 indicates that WCN may have some problems paying its short term obligations.
- With a Current ratio value of 0.69, WCN is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
- A Quick Ratio of 0.69 indicates that WCN may have some problems paying its short term obligations.
- The Quick ratio of WCN (0.69) is worse than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. WCN.CA Growth Analysis
3.1 Past
- WCN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.58%.
- WCN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.21% yearly.
- Looking at the last year, WCN shows a small growth in Revenue. The Revenue has grown by 5.89% in the last year.
- The Revenue has been growing by 11.69% on average over the past years. This is quite good.
EPS 1Y (TTM)7.58%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%8.85%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%6.39%
3.2 Future
- The Earnings Per Share is expected to grow by 10.60% 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 5.99% yearly.
EPS Next Y6.88%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
EPS Next 5Y10.6%
Revenue Next Year5.17%
Revenue Next 2Y5.67%
Revenue Next 3Y6.04%
Revenue Next 5Y5.99%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. WCN.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 30.50, WCN can be considered very expensive at the moment.
- 65.22% of the companies in the same industry are more expensive than WCN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.64, WCN is valued at the same level.
- Based on the Price/Forward Earnings ratio of 25.40, the valuation of WCN can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as WCN.
- When comparing the Price/Forward Earnings ratio of WCN to the average of the S&P500 Index (21.36), we can say WCN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.5 | ||
| Fwd PE | 25.4 |
4.2 Price Multiples
- WCN's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WCN indicates a somewhat cheap valuation: WCN is cheaper than 60.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.83 | ||
| EV/EBITDA | 16.16 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- WCN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.44
PEG (5Y)2.15
EPS Next 2Y10.67%
EPS Next 3Y11.45%
5. WCN.CA Dividend Analysis
5.1 Amount
- WCN has a yearly dividend return of 0.79%, which is pretty low.
- WCN's Dividend Yield is a higher than the industry average which is at 1.09.
- Compared to an average S&P500 Dividend Yield of 1.82, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
- The dividend of WCN is nicely growing with an annual growth rate of 11.37%!
- WCN has paid a dividend for at least 10 years, which is 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)11.37%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
- 32.35% of the earnings are spent on dividend by WCN. This is a low number and sustainable payout ratio.
- The dividend of WCN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.35%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
WCN.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:WCN (5/1/2026, 7:00:00 PM)
219
-4.76 (-2.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Industry Strength21.74
Industry Growth10.56
Earnings (Last)04-22 2026-04-22/amc
Earnings (Next)07-21 2026-07-21/amc
Inst Owners90.16%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap55.81B
Revenue(TTM)9.61B
Net Income(TTM)1.05B
Analysts83
Price Target278.88 (27.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend1.78
Dividend Growth(5Y)11.37%
DP32.35%
Div Incr Years8
Div Non Decr Years8
Ex-Date02-25 2026-02-25 (0.35)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.23%
Min EPS beat(2)-0.31%
Max EPS beat(2)2.78%
EPS beat(4)3
Avg EPS beat(4)1.9%
Min EPS beat(4)-0.31%
Max EPS beat(4)3.11%
EPS beat(8)6
Avg EPS beat(8)1.46%
EPS beat(12)9
Avg EPS beat(12)1.39%
EPS beat(16)12
Avg EPS beat(16)1.67%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)-0.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.23%
Revenue beat(12)2
Avg Revenue beat(12)-0.33%
Revenue beat(16)4
Avg Revenue beat(16)-0.3%
PT rev (1m)36.34%
PT rev (3m)35.73%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-3.54%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-4.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.5 | ||
| Fwd PE | 25.4 | ||
| P/S | 4.25 | ||
| P/FCF | 35.83 | ||
| P/OCF | 16.89 | ||
| P/B | 5.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.16 |
EPS(TTM)7.18
EY3.28%
EPS(NY)8.62
Fwd EY3.94%
FCF(TTM)6.11
FCFY2.79%
OCF(TTM)12.97
OCFY5.92%
SpS51.54
BVpS43.21
TBVpS-12.43
PEG (NY)4.44
PEG (5Y)2.15
Graham Number83.5532 (-61.85%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 13.09% | ||
| ROCE | 9.81% | ||
| ROIC | 7.69% | ||
| ROICexc | 7.73% | ||
| ROICexgc | 16.96% | ||
| OM | 19.58% | ||
| PM (TTM) | 10.97% | ||
| GM | 42.5% | ||
| FCFM | 11.86% |
ROA(3y)4.16%
ROA(5y)4.31%
ROE(3y)10.28%
ROE(5y)10.29%
ROIC(3y)7.41%
ROIC(5y)7%
ROICexc(3y)7.44%
ROICexc(5y)7.03%
ROICexgc(3y)16.68%
ROICexgc(5y)15.84%
ROCE(3y)9.46%
ROCE(5y)8.93%
ROICexgc growth 3Y5.3%
ROICexgc growth 5Y5.84%
ROICexc growth 3Y5.56%
ROICexc growth 5Y6.23%
OM growth 3Y3.01%
OM growth 5Y3.6%
PM growth 3Y-0.62%
PM growth 5Y24.78%
GM growth 3Y2.05%
GM growth 5Y1.25%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 7.99 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 101.72% | ||
| Cap/Sales | 13.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.05% | ||
| Profit Quality | 108.08% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.97 |
F-Score7
WACC8.61%
ROIC/WACC0.89
Cap/Depr(3y)93.59%
Cap/Depr(5y)94.33%
Cap/Sales(3y)12.03%
Cap/Sales(5y)12.17%
Profit Quality(3y)153.2%
Profit Quality(5y)149.35%
High Growth Momentum
Growth
EPS 1Y (TTM)7.58%
EPS 3Y10.57%
EPS 5Y14.21%
EPS Q2Q%8.85%
EPS Next Y6.88%
EPS Next 2Y10.67%
EPS Next 3Y11.45%
EPS Next 5Y10.6%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y9.49%
Revenue growth 5Y11.69%
Sales Q2Q%6.39%
Revenue Next Year5.17%
Revenue Next 2Y5.67%
Revenue Next 3Y6.04%
Revenue Next 5Y5.99%
EBIT growth 1Y8.23%
EBIT growth 3Y12.78%
EBIT growth 5Y15.71%
EBIT Next Year80.5%
EBIT Next 3Y28.36%
EBIT Next 5Y19.2%
FCF growth 1Y-8.58%
FCF growth 3Y3.2%
FCF growth 5Y10.39%
OCF growth 1Y11.19%
OCF growth 3Y6.08%
OCF growth 5Y11.38%
WASTE CONNECTIONS INC / WCN.CA Fundamental Analysis 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.
What is the valuation status of WASTE CONNECTIONS INC (WCN.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to WASTE CONNECTIONS INC (WCN.CA). This can be considered as Fairly Valued.
How profitable is WASTE CONNECTIONS INC (WCN.CA) stock?
WASTE CONNECTIONS INC (WCN.CA) has a profitability rating of 8 / 10.
How financially healthy is WASTE CONNECTIONS INC?
The financial health rating of WASTE CONNECTIONS INC (WCN.CA) is 3 / 10.
How sustainable is the dividend of WASTE CONNECTIONS INC (WCN.CA) stock?
The dividend rating of WASTE CONNECTIONS INC (WCN.CA) is 5 / 10 and the dividend payout ratio is 32.35%.