WASTE CONNECTIONS INC (WCN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WCN - CA94106B1013 - Common Stock
173.8 USD
-0.46 (-0.26%)
Overall WCN gets a fundamental rating of 5 out of 10. We evaluated WCN against 82 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.
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
The Return On Assets of WCN (2.99%) is comparable to the rest of the industry.
WCN has a better Return On Equity (7.69%) than 62.20% 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 65.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WCN is below the industry average of 10.51%.
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 better Profit Margin (6.65%) than 75.61% of its industry peers.
In the last couple of years the Profit Margin of WCN has declined.
WCN has a Operating Margin of 19.06%. This is amongst the best in the industry. WCN outperforms 92.68% of its industry peers.
In the last couple of years the Operating Margin of WCN has grown nicely.
With a decent Gross Margin value of 42.10%, WCN is doing good in the industry, outperforming 74.39% 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 | 19.06% | ||
| 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.
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.
WCN has a worse debt/assets ratio than last year.
2.2 Solvency
WCN has an Altman-Z score of 3.14. This indicates that WCN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.14, WCN is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
WCN has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as WCN would need 6.99 years to pay back of all of its debts.
WCN's Debt to FCF ratio of 6.99 is fine compared to the rest of the industry. WCN outperforms 63.41% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that WCN has dependencies on debt financing.
WCN's Debt to Equity ratio of 1.07 is on the low side compared to the rest of the industry. WCN is outperformed by 71.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.95
WACC7.94%
2.3 Liquidity
A Current Ratio of 0.67 indicates that WCN may have some problems paying its short term obligations.
WCN has a Current ratio of 0.67. This is amonst the worse of the industry: WCN underperforms 86.59% of its industry peers.
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 Quick ratio of 0.67. This is amonst the worse of the industry: WCN underperforms 82.93% 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%.
WCN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.90% yearly.
The Revenue has been growing slightly by 7.58% in the past 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
The Earnings Per Share is expected to grow by 11.68% on average over the next years. This is quite good.
Based on estimates for the next years, WCN will show a small growth in Revenue. The Revenue will grow by 7.25% on average per year.
EPS Next Y8.5%
EPS Next 2Y9.63%
EPS Next 3Y10.98%
EPS Next 5Y11.68%
Revenue Next Year6.33%
Revenue Next 2Y6.07%
Revenue Next 3Y6.2%
Revenue Next 5Y7.25%
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
The Price/Earnings ratio is 34.62, which means the current valuation is very expensive for WCN.
WCN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.37, WCN is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 30.19, the valuation of WCN can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as WCN.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.20, WCN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.62 | ||
| Fwd PE | 30.19 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.04 | ||
| EV/EBITDA | 17.6 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.08
PEG (5Y)2.91
EPS Next 2Y9.63%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, WCN is not a good candidate for dividend investing.
WCN's Dividend Yield is a higher than the industry average which is at 2.48.
Compared to an average S&P500 Dividend Yield of 2.32, WCN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
On average, the dividend of WCN grows each year by 12.03%, which is quite nice.
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
52.24% of the earnings are spent on dividend by WCN. 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 2Y9.63%
EPS Next 3Y10.98%
NYSE:WCN (12/4/2025, 2:05:36 PM)
173.8
-0.46 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.89%
Inst Owner Change-3.42%
Ins Owners0.11%
Ins Owner Change-1.74%
Market Cap44.50B
Revenue(TTM)9.35B
Net Income(TTM)622.05M
Analysts84.21
Price Target205.1 (18.01%)
Short Float %0.7%
Short Ratio1.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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)-0.78%
PT rev (3m)-0.32%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0.75%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.62 | ||
| Fwd PE | 30.19 | ||
| P/S | 4.76 | ||
| P/FCF | 36.04 | ||
| P/OCF | 18.34 | ||
| P/B | 5.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.6 |
EPS(TTM)5.02
EY2.89%
EPS(NY)5.76
Fwd EY3.31%
FCF(TTM)4.82
FCFY2.77%
OCF(TTM)9.48
OCFY5.45%
SpS36.54
BVpS31.61
TBVpS-8.54
PEG (NY)4.08
PEG (5Y)2.91
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 | 3.14 |
F-Score6
WACC7.94%
ROIC/WACC0.95
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 Y8.5%
EPS Next 2Y9.63%
EPS Next 3Y10.98%
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 2Y6.07%
Revenue Next 3Y6.2%
Revenue Next 5Y7.25%
EBIT growth 1Y4.81%
EBIT growth 3Y16.36%
EBIT growth 5Y13.35%
EBIT Next Year78.14%
EBIT Next 3Y28.33%
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%.