WASTE CONNECTIONS INC (WCN)
CA94106B1013 - Common Stock
Overall WCN gets a fundamental rating of 5 out of 10. We evaluated WCN against 84 industry peers in the Commercial Services & Supplies industry. While WCN has a great profitability rating, there are some minor 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.
In the past year WCN had a positive cash flow from operations.
In the past 5 years WCN has always been profitable.
WCN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.26%, WCN is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
WCN has a better Return On Equity (9.92%) than 73.49% of its industry peers.
WCN's Return On Invested Capital of 7.20% is fine compared to the rest of the industry. WCN outperforms 68.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WCN is below the industry average of 10.10%.
The 3 year average ROIC (6.66%) for WCN is below the current ROIC(7.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.26% | ||
| ROE | 9.92% | ||
| ROIC | 7.2% |
ROA(3y)4.45%
ROA(5y)3.79%
ROE(3y)10.17%
ROE(5y)8.33%
ROIC(3y)6.66%
ROIC(5y)6.2%
1.3 Margins
WCN has a better Profit Margin (9.51%) than 86.75% of its industry peers.
WCN's Profit Margin has declined in the last couple of years.
WCN has a better Operating Margin (18.52%) than 89.16% of its industry peers.
In the last couple of years the Operating Margin of WCN has remained more or less at the same level.
WCN's Gross Margin of 40.86% is fine compared to the rest of the industry. WCN outperforms 77.11% 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 | 18.52% | ||
| PM (TTM) | 9.51% | ||
| GM | 40.86% |
OM growth 3Y4.3%
OM growth 5Y1.27%
PM growth 3Y36.26%
PM growth 5Y-3.06%
GM growth 3Y0.85%
GM growth 5Y-0.4%
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.
Compared to 1 year ago, WCN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.50 indicates that WCN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.50, WCN is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
The Debt to FCF ratio of WCN is 5.66, which is a neutral value as it means it would take WCN, 5.66 years of fcf income to pay off all of its debts.
WCN has a Debt to FCF ratio of 5.66. This is in the better half of the industry: WCN outperforms 65.06% of its industry peers.
WCN has a Debt/Equity ratio of 0.87. This is a neutral value indicating WCN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, WCN is in line with its industry, outperforming 40.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.66 | ||
| Altman-Z | 3.5 |
ROIC/WACC0.98
WACC7.37%
2.3 Liquidity
A Current Ratio of 0.68 indicates that WCN may have some problems paying its short term obligations.
With a Current ratio value of 0.68, WCN is not doing good in the industry: 90.36% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that WCN may have some problems paying its short term obligations.
WCN's Quick ratio of 0.68 is on the low side compared to the rest of the industry. WCN is outperformed by 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.97% over the past year.
WCN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.62% yearly.
WCN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.23%.
WCN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.26% yearly.
EPS 1Y (TTM)9.97%
EPS 3Y16.5%
EPS 5Y10.62%
EPS growth Q2Q24.72%
Revenue 1Y (TTM)11.23%
Revenue growth 3Y13.78%
Revenue growth 5Y10.26%
Revenue growth Q2Q8.9%
3.2 Future
The Earnings Per Share is expected to grow by 11.84% 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 7.76% on average per year.
EPS Next Y15.67%
EPS Next 2Y14.8%
EPS Next 3Y15.18%
EPS Next 5Y11.84%
Revenue Next Year9.65%
Revenue Next 2Y8.44%
Revenue Next 3Y8.72%
Revenue Next 5Y7.76%
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.
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
With a Price/Earnings ratio of 38.68, WCN can be considered very expensive at the moment.
WCN's Price/Earnings is on the same level as the industry average.
WCN is valuated expensively when we compare the Price/Earnings ratio to 24.67, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 33.44 indicates a quite expensive valuation of WCN.
The rest of the industry has a similar Price/Forward Earnings ratio as WCN.
WCN is valuated expensively when we compare the Price/Forward Earnings ratio to 21.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.68 | ||
| Fwd PE | 33.44 |
4.2 Price Multiples
60.24% of the companies in the same industry are cheaper than WCN, based on the Enterprise Value to EBITDA ratio.
WCN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.06 | ||
| EV/EBITDA | 19.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WCN may justify a higher PE ratio.
WCN's earnings are expected to grow with 15.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.47
PEG (5Y)3.64
EPS Next 2Y14.8%
EPS Next 3Y15.18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, WCN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.38, WCN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.69, WCN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of WCN is nicely growing with an annual growth rate of 12.63%!
WCN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of WCN decreased in the last 3 years.
Dividend Growth(5Y)12.63%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
WCN pays out 35.48% of its income as dividend. This is a sustainable payout ratio.
WCN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.48%
EPS Next 2Y14.8%
EPS Next 3Y15.18%
WASTE CONNECTIONS INC
NYSE:WCN (4/30/2024, 7:04:00 PM)
After market: 162.09 0 (0%)162.09
-2.56 (-1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.68 | ||
| Fwd PE | 33.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.47
PEG (5Y)3.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.26% | ||
| ROE | 9.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.52% | ||
| PM (TTM) | 9.51% | ||
| GM | 40.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)9.97%
EPS 3Y16.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.23%
Revenue growth 3Y13.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y