WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
USA - NYSE:WCN - CA94106B1013 - Common Stock
173.58 USD
-1.99 (-1.13%)
173.58 USD
0 (0%)
Taking everything into account, WCN scores 5 out of 10 in our fundamental rating. WCN was compared to 84 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.
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 has a better Return On Assets (3.11%) than 63.10% of its industry peers.
WCN has a Return On Equity of 7.71%. This is in the better half of the industry: WCN outperforms 64.29% of its industry peers.
WCN's Return On Invested Capital of 7.49% is fine compared to the rest of the industry. WCN outperforms 65.48% of its industry peers.
WCN had an Average Return On Invested Capital over the past 3 years of 7.10%. This is below the industry average of 10.60%.
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
The Profit Margin of WCN (6.97%) is better than 76.19% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
WCN has a better Operating Margin (19.12%) than 90.48% of its industry peers.
WCN's Operating Margin has improved in the last couple of years.
WCN's Gross Margin of 42.03% is fine compared to the rest of the industry. WCN outperforms 72.62% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WCN is destroying value.
WCN has about the same amout of shares outstanding than it did 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 3.19 indicates that WCN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.19, WCN is doing good in the industry, outperforming 63.10% 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 of 7.32. This is in the better half of the industry: WCN outperforms 63.10% of its industry peers.
WCN has a Debt/Equity ratio of 1.00. This is a neutral value indicating WCN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 1.00, WCN is not doing good in the industry: 65.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.93
WACC8.05%
2.3 Liquidity
A Current Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
WCN's Current ratio of 0.67 is on the low side compared to the rest of the industry. WCN is outperformed by 86.90% 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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
WCN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
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 quite strong growth in Revenue. The Revenue has grown by 9.65% in the last 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)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.
The Revenue is expected to grow by 7.57% on average over the next years.
EPS Next Y7.72%
EPS Next 2Y10.85%
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 35.21, which means the current valuation is very expensive for WCN.
The rest of the industry has a similar Price/Earnings ratio as WCN.
WCN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.20.
With a Price/Forward Earnings ratio of 29.49, WCN can be considered very expensive at the moment.
WCN's Price/Forward Earnings ratio is in line with the industry average.
WCN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.21 | ||
| Fwd PE | 29.49 |
4.2 Price Multiples
WCN's Enterprise Value to EBITDA is on the same level as the industry average.
WCN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.13 | ||
| EV/EBITDA | 17.75 |
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)4.56
PEG (5Y)2.96
EPS Next 2Y10.85%
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 2.27.
With a Dividend Yield of 0.73, WCN pays less dividend than the S&P500 average, which is at 2.38.
| 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 last 3 years.
Dividend Growth(5Y)12.03%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WCN pays out 49.38% 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.
DP49.38%
EPS Next 2Y10.85%
EPS Next 3Y11.52%
173.58
-1.99 (-1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.49%
Inst Owner Change0.33%
Ins Owners0.15%
Ins Owner Change-1.01%
Market Cap44.63B
Analysts81.18
Price Target206.46 (18.94%)
Short Float %0.86%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend1.17
Dividend Growth(5Y)12.03%
DP49.38%
Div Incr Years3
Div Non Decr Years3
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)-0.71%
PT rev (3m)-0.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)-3.21%
EPS NY rev (3m)-3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.21 | ||
| Fwd PE | 29.49 | ||
| P/S | 4.83 | ||
| P/FCF | 39.13 | ||
| P/OCF | 19.35 | ||
| P/B | 5.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.75 |
EPS(TTM)4.93
EY2.84%
EPS(NY)5.89
Fwd EY3.39%
FCF(TTM)4.44
FCFY2.56%
OCF(TTM)8.97
OCFY5.17%
SpS35.91
BVpS32.49
TBVpS-7.5
PEG (NY)4.56
PEG (5Y)2.96
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%
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 | 3.19 |
F-Score5
WACC8.05%
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)8.11%
EPS 3Y14.04%
EPS 5Y11.9%
EPS Q2Q%4.03%
EPS Next Y7.72%
EPS Next 2Y10.85%
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 Year80.4%
EBIT Next 3Y29.5%
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%