WASTE CONNECTIONS INC (WCN.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:WCN • CA94106B1013
226.64 CAD
-3.24 (-1.41%)
Last: Feb 3, 2026, 07:00 PM
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 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.
- 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 66.67% of the companies in the same industry.
- With a decent Return On Equity value of 7.69%, WCN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- WCN's Return On Invested Capital of 7.55% is amongst the best of 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 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
- WCN has a Profit Margin of 6.65%. This is in the better half of the industry: WCN outperforms 79.17% of its industry peers.
- WCN's Profit Margin has declined in the last couple of years.
- WCN has a better Operating Margin (19.06%) than 95.83% of its industry peers.
- WCN's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 42.10%, WCN is doing good in the industry, outperforming 79.17% 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 | 19.06% | ||
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WCN is destroying value.
- The number of shares outstanding for WCN remains at a similar level compared to 1 year ago.
- The number of shares outstanding for WCN has been reduced compared to 5 years ago.
- The debt/assets ratio for WCN is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.04 indicates that WCN is not in any danger for bankruptcy at the moment.
- The Altman-Z score of WCN (3.04) is better than 83.33% of its industry peers.
- The Debt to FCF ratio of WCN is 6.99, which is on the high side as it means it would take WCN, 6.99 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 6.99, WCN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- WCN has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
- WCN's Debt to Equity ratio of 1.07 is in line compared to the rest of the industry. WCN outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.91
WACC8.27%
2.3 Liquidity
- A Current Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
- WCN has a worse Current ratio (0.67) than 70.83% of its industry peers.
- A Quick Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
- WCN's Quick ratio of 0.67 is on the low side compared to the rest of the industry. WCN is outperformed by 62.50% 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 5.91%.
- Measured over the past years, WCN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.90% on average per year.
- Looking at the last year, WCN shows a small growth in Revenue. The Revenue has grown by 7.58% in the last year.
- The Revenue has been growing by 10.60% on average over the past years. This is quite good.
EPS 1Y (TTM)5.91%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%6.67%
Revenue 1Y (TTM)7.58%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%5.13%
3.2 Future
- Based on estimates for the next years, WCN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.98% on average per year.
- WCN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.76% yearly.
EPS Next Y8.39%
EPS Next 2Y9.54%
EPS Next 3Y10.89%
EPS Next 5Y9.98%
Revenue Next Year6.33%
Revenue Next 2Y6.05%
Revenue Next 3Y6.2%
Revenue Next 5Y6.76%
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.
- The Revenue 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 33.04, 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 62.50% of the companies listed in the same industry.
- WCN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 28.87, WCN can be considered very expensive at the moment.
- WCN's Price/Forward Earnings is on the same level as the industry average.
- WCN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.04 | ||
| Fwd PE | 28.87 |
4.2 Price Multiples
- WCN's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as WCN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.42 | ||
| EV/EBITDA | 16.9 |
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.
- The decent profitability rating of WCN may justify a higher PE ratio.
PEG (NY)3.94
PEG (5Y)2.78
EPS Next 2Y9.54%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.81%, WCN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.02, WCN pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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.
- 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
- WCN pays out 52.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
- WCN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.24%
EPS Next 2Y9.54%
EPS Next 3Y10.89%
TSX:WCN (2/3/2026, 7:00:00 PM)
226.64
-3.24 (-1.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners89.12%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap58.02B
Revenue(TTM)9.35B
Net Income(TTM)622.05M
Analysts84.21
Price Target205.48 (-9.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.59
Dividend Growth(5Y)12.03%
DP52.24%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
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)0%
PT rev (3m)-28.68%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.04 | ||
| Fwd PE | 28.87 | ||
| P/S | 4.54 | ||
| P/FCF | 34.42 | ||
| P/OCF | 17.51 | ||
| P/B | 5.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.9 |
EPS(TTM)6.86
EY3.03%
EPS(NY)7.85
Fwd EY3.46%
FCF(TTM)6.58
FCFY2.91%
OCF(TTM)12.94
OCFY5.71%
SpS49.89
BVpS43.17
TBVpS-11.66
PEG (NY)3.94
PEG (5Y)2.78
Graham Number81.63
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 | 3.04 |
F-Score6
WACC8.27%
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)5.91%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%6.67%
EPS Next Y8.39%
EPS Next 2Y9.54%
EPS Next 3Y10.89%
EPS Next 5Y9.98%
Revenue 1Y (TTM)7.58%
Revenue growth 3Y13.19%
Revenue growth 5Y10.6%
Sales Q2Q%5.13%
Revenue Next Year6.33%
Revenue Next 2Y6.05%
Revenue Next 3Y6.2%
Revenue Next 5Y6.76%
EBIT growth 1Y4.81%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year77.97%
EBIT Next 3Y27.4%
EBIT Next 5Y19.22%
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 5 / 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 33.04 and the Price/Book (PB) ratio is 5.25.
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%.