WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCN - CA94106B1013 - Common Stock
178.14 USD
+0.3 (+0.17%)
177.561 USD
-0.58 (-0.33%)
Taking everything into account, WCN scores 5 out of 10 in our fundamental rating. WCN was compared to 81 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 quite expensive at the moment. 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.
WCN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WCN has a Return On Assets of 2.99%. This is in the better half of the industry: WCN outperforms 63.75% of its industry peers.
The Return On Equity of WCN (7.69%) is better than 66.25% of its industry peers.
WCN has a Return On Invested Capital of 7.55%. This is in the better half of the industry: WCN outperforms 67.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WCN is below the industry average of 10.33%.
The last Return On Invested Capital (7.55%) for WCN is above the 3 year average (7.10%), which is a sign of increasing profitability.
| 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 better Profit Margin (6.65%) than 77.50% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
WCN's Operating Margin of 19.06% is amongst the best of the industry. WCN outperforms 92.50% of its industry peers.
WCN's Operating Margin has improved in the last couple of years.
WCN's Gross Margin of 42.10% is fine compared to the rest of the industry. WCN outperforms 76.25% 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 about the same amout of 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 3.19 indicates that WCN is not in any danger for bankruptcy at the moment.
WCN has a better Altman-Z score (3.19) than 68.75% 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.
The Debt to FCF ratio of WCN (6.99) is better than 66.25% of its industry peers.
WCN has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.07, WCN is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.94
WACC8%
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 85.00% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
WCN has a worse Quick ratio (0.67) than 80.00% of its industry peers.
| 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.
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.
The Revenue has been growing slightly by 7.58% in the past year.
WCN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.60% yearly.
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 11.68% on average per year.
WCN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.25% yearly.
EPS Next Y8.43%
EPS Next 2Y9.61%
EPS Next 3Y11.01%
EPS Next 5Y11.68%
Revenue Next Year6.33%
Revenue Next 2Y6.05%
Revenue Next 3Y6.2%
Revenue Next 5Y7.25%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
WCN is valuated quite expensively with a Price/Earnings ratio of 35.49.
WCN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WCN to the average of the S&P500 Index (26.57), we can say WCN is valued slightly more expensively.
The Price/Forward Earnings ratio is 30.95, which means the current valuation is very expensive for WCN.
WCN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WCN to the average of the S&P500 Index (24.04), we can say WCN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.49 | ||
| Fwd PE | 30.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WCN.
WCN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.94 | ||
| EV/EBITDA | 17.93 |
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)4.21
PEG (5Y)2.98
EPS Next 2Y9.61%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
WCN has a yearly dividend return of 0.75%, which is pretty low.
Compared to an average industry Dividend Yield of 0.89, WCN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.75, WCN pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
On average, the dividend of WCN grows each year by 12.03%, which is quite nice.
WCN has paid a dividend for at least 10 years, which is a reliable track record.
WCN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)12.03%
Div Incr Years3
Div Non Decr Years3
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.
The dividend of WCN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.24%
EPS Next 2Y9.61%
EPS Next 3Y11.01%
178.14
+0.3 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.17%
Inst Owner Change-3.42%
Ins Owners0.11%
Ins Owner Change-1.67%
Market Cap45.61B
Revenue(TTM)9.35B
Net Income(TTM)622.05M
Analysts84.21
Price Target148.96 (-16.38%)
Short Float %0.86%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend1.17
Dividend Growth(5Y)12.03%
DP52.24%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)-27.37%
PT rev (3m)-27.85%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.49 | ||
| Fwd PE | 30.95 | ||
| P/S | 4.88 | ||
| P/FCF | 36.94 | ||
| P/OCF | 18.8 | ||
| P/B | 5.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.93 |
EPS(TTM)5.02
EY2.82%
EPS(NY)5.75
Fwd EY3.23%
FCF(TTM)4.82
FCFY2.71%
OCF(TTM)9.48
OCFY5.32%
SpS36.54
BVpS31.61
TBVpS-8.54
PEG (NY)4.21
PEG (5Y)2.98
Graham Number59.75
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 | 3.19 |
F-Score6
WACC8%
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)5.91%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%6.67%
EPS Next Y8.43%
EPS Next 2Y9.61%
EPS Next 3Y11.01%
EPS Next 5Y11.68%
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 5Y7.25%
EBIT growth 1Y4.81%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year77.97%
EBIT Next 3Y27.4%
EBIT Next 5Y19.66%
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 FAQ
What is the ChartMill fundamental rating of WASTE CONNECTIONS INC (WCN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WCN.
Can you provide the valuation status for WASTE CONNECTIONS INC?
ChartMill assigns a valuation rating of 2 / 10 to WASTE CONNECTIONS INC (WCN). This can be considered as Overvalued.
What is the profitability of WCN stock?
WASTE CONNECTIONS INC (WCN) has a profitability rating of 7 / 10.
What is the financial health of WASTE CONNECTIONS INC (WCN) stock?
The financial health rating of WASTE CONNECTIONS INC (WCN) is 3 / 10.
Is the dividend of WASTE CONNECTIONS INC sustainable?
The dividend rating of WASTE CONNECTIONS INC (WCN) is 4 / 10 and the dividend payout ratio is 52.24%.