WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
NYSE:WCN - CA94106B1013 - Common Stock
184.78 USD
-1.7 (-0.91%)
184.78 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
In the past year WCN was profitable.
WCN had a positive operating cash flow in the past year.
In the past 5 years WCN has always been profitable.
Each year in the past 5 years WCN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WCN (3.11%) is better than 64.29% of its industry peers.
The Return On Equity of WCN (7.71%) is better than 65.48% of its industry peers.
WCN's Return On Invested Capital of 7.49% is fine compared to the rest of the industry. WCN outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WCN is below the industry average of 11.08%.
The 3 year average ROIC (7.10%) for WCN is below the current ROIC(7.49%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 6.97%, WCN is doing good in the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Profit Margin of WCN has declined.
WCN's Operating Margin of 19.12% is amongst the best of the industry. WCN outperforms 90.48% of its industry peers.
WCN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 42.03%, WCN is in the better half of the industry, outperforming 73.81% 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 | 19.12% | ||
| 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.
The number of shares outstanding for WCN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WCN has less shares outstanding
The debt/assets ratio for WCN is higher compared to a year ago.
2.2 Solvency
WCN has an Altman-Z score of 3.33. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
WCN's Altman-Z score of 3.33 is fine compared to the rest of the industry. WCN outperforms 65.48% of its industry peers.
The Debt to FCF ratio of WCN is 7.32, which is on the high side as it means it would take WCN, 7.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.32, WCN is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
A Debt/Equity ratio of 1.00 indicates that WCN is somewhat dependend on debt financing.
WCN has a worse Debt to Equity ratio (1.00) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.92
WACC8.13%
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 85.71% 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.
WCN has a worse Quick ratio (0.67) than 80.95% 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.
WCN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.90% yearly.
WCN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.65%.
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
Based on estimates for the next years, WCN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.90% on average per year.
Based on estimates for the next years, WCN will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.
EPS Next Y7.72%
EPS Next 2Y10.85%
EPS Next 3Y11.52%
EPS Next 5Y11.9%
Revenue Next Year6.38%
Revenue Next 2Y6.73%
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
A Price/Earnings ratio of 37.48 indicates a quite expensive valuation of WCN.
WCN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.24, WCN is valued a bit more expensive.
The Price/Forward Earnings ratio is 31.40, which means the current valuation is very expensive for WCN.
The rest of the industry has a similar Price/Forward Earnings ratio as WCN.
WCN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.48 | ||
| Fwd PE | 31.4 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as WCN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.66 | ||
| EV/EBITDA | 18.71 |
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)4.85
PEG (5Y)3.15
EPS Next 2Y10.85%
EPS Next 3Y11.52%
5. Dividend
5.1 Amount
WCN has a yearly dividend return of 0.70%, which is pretty low.
WCN's Dividend Yield is a higher than the industry average which is at 2.36.
With a Dividend Yield of 0.70, WCN pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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%
184.78
-1.7 (-0.91%)
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-3.88%
Market Cap47.51B
Analysts81.18
Price Target205.76 (11.35%)
Short Float %1.02%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)-1.32%
PT rev (3m)-0.27%
EPS NQ rev (1m)-4.28%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)-3.21%
EPS NY rev (3m)-3.21%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.48 | ||
| Fwd PE | 31.4 | ||
| P/S | 5.14 | ||
| P/FCF | 41.66 | ||
| P/OCF | 20.59 | ||
| P/B | 5.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.71 |
EPS(TTM)4.93
EY2.67%
EPS(NY)5.89
Fwd EY3.19%
FCF(TTM)4.44
FCFY2.4%
OCF(TTM)8.97
OCFY4.86%
SpS35.91
BVpS32.49
TBVpS-7.5
PEG (NY)4.85
PEG (5Y)3.15
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 | 3.33 |
F-Score5
WACC8.13%
ROIC/WACC0.92
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 2Y6.73%
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%