DB:UI51

Stock Analysis Report

Executive Summary

Waste Connections, Inc. provides waste collection, transfer, disposal, and recycling services in the United States and Canada.


Snowflake Analysis

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Waste Connections's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UI51 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.0%

UI51

-1.1%

DE Commercial Services

0.1%

DE Market


1 Year Return

32.9%

UI51

-4.3%

DE Commercial Services

14.1%

DE Market

Return vs Industry: UI51 exceeded the German Commercial Services industry which returned -4.3% over the past year.

Return vs Market: UI51 exceeded the German Market which returned 14.1% over the past year.


Shareholder returns

UI51IndustryMarket
7 Day6.0%-1.1%0.1%
30 Day9.7%-1.1%0.2%
90 Day19.9%4.8%3.3%
1 Year33.9%32.9%-0.8%-4.3%17.6%14.1%
3 Year81.5%77.4%10.4%0.9%14.8%4.8%
5 Yearn/a2.7%-11.7%22.2%5.4%

Price Volatility Vs. Market

How volatile is Waste Connections's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Waste Connections undervalued compared to its fair value and its price relative to the market?

20.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UI51 (€95.5) is trading below our estimate of fair value (€118.23)

Significantly Below Fair Value: UI51 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: UI51 is poor value based on its PE Ratio (48.7x) compared to the Commercial Services industry average (31.6x).

PE vs Market: UI51 is poor value based on its PE Ratio (48.7x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: UI51 is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: UI51 is overvalued based on its PB Ratio (4x) compared to the DE Commercial Services industry average (3.3x).


Next Steps

Future Growth

How is Waste Connections forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UI51's forecast earnings growth (12.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: UI51's earnings (12.1% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: UI51's earnings are forecast to grow, but not significantly.

Revenue vs Market: UI51's revenue (6.6% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: UI51's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UI51's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has Waste Connections performed over the past 5 years?

37.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UI51 has high quality earnings.

Growing Profit Margin: UI51's current net profit margins (10.5%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: UI51's earnings have grown significantly by 37.1% per year over the past 5 years.

Accelerating Growth: UI51's earnings growth over the past year (3.7%) is below its 5-year average (37.1% per year).

Earnings vs Industry: UI51 earnings growth over the past year (3.7%) underperformed the Commercial Services industry 10.8%.


Return on Equity

High ROE: UI51's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Waste Connections's financial position?


Financial Position Analysis

Short Term Liabilities: UI51's short term assets ($1.1B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: UI51's short term assets ($1.1B) do not cover its long term liabilities ($5.8B).


Debt to Equity History and Analysis

Debt Level: UI51's debt to equity ratio (63.6%) is considered high.

Reducing Debt: UI51's debt to equity ratio has reduced from 89.3% to 63.6% over the past 5 years.

Debt Coverage: UI51's debt is well covered by operating cash flow (34.9%).

Interest Coverage: UI51's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: UI51 has a high level of physical assets or inventory.

Debt Coverage by Assets: UI51's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Waste Connections's current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 20 2020Ex Dividend DateFeb 26 2020Dividend Pay DateMar 12 202015 days from Ex DividendBuy in the next 6 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: UI51's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: UI51's dividend (0.71%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, UI51 has been paying a dividend for less than 10 years.

Growing Dividend: UI51's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), UI51's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UI51's dividends in 3 years are forecast to be well covered by earnings (28.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.5yrs

Average management tenure


CEO

Worthing Jackman (55yo)

1yrs

Tenure

US$2,366,374

Compensation

Mr. Worthing F. Jackman has served as a Chief Executive Officer and has been President at Waste Connections, Inc. since July 01, 2018. He serves as a Director at Waste Connections, Inc. since July 25, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Worthing's total compensation ($USD2.37M) is below average for companies of similar size in the German market ($USD4.36M).

Compensation vs Earnings: Worthing's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Mittelstaedt
Executive Chairman22.1yrsUS$13.69m0.049% $12.5m
Worthing Jackman
President1yrsUS$2.37m0.046% $11.7m
Mary Whitney
Senior VP & CFO1.6yrsUS$1.09m0.015% $3.9m
Darrell Chambliss
COO & Executive VP16.3yrsUS$1.92m0.035% $9.1m
Patrick Shea
Executive VP16yrsUS$1.35m0.0088% $2.2m
David Eddie
Chief Accounting Officer & Senior VP10yrsUS$1.23m0.016% $4.1m
Eric Hansen
Senior VP & Chief Information Officer15.6yrsno data0.0024% $600.8k
David Hall
Senior Vice President of Sales & Marketing14.3yrsno data0.0036% $925.5k
Susan Netherton
Vice President of People6.6yrsno datano data
James Little
Executive Vice President of Engineering & Disposal11yrsUS$1.17m0.012% $3.0m

10.5yrs

Average Tenure

55yo

Average Age

Experienced Management: UI51's management team is seasoned and experienced (10.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ronald Mittelstaedt
Executive Chairman22.1yrsUS$13.69m0.049% $12.5m
Worthing Jackman
President1yrsUS$2.37m0.046% $11.7m
William Razzouk
Independent Director22.1yrsUS$307.47k0.0053% $1.3m
Susan Lee
Independent Director5.8yrsUS$277.34k0.0035% $894.8k
Michael Harlan
Independent Director21.8yrsUS$298.80k0.0066% $1.7m
Edward Guillet
Independent Director12.9yrsUS$301.21k0.016% $4.0m
Larry Hughes
Independent Director5.8yrsUS$275.65k0.0034% $869.3k
Elise Jordan
Director0.5yrsno data0.00011% $28.1k

9.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: UI51's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UI51 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Waste Connections, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Waste Connections, Inc.
  • Ticker: UI51
  • Exchange: DB
  • Founded: 1997
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$27.600b
  • Listing Market Cap: US$25.566b
  • Shares outstanding: 263.69m
  • Website: https://www.wasteconnections.com

Number of Employees


Location

  • Waste Connections, Inc.
  • 610 Applewood Crescent
  • 2nd Floor
  • Vaughan
  • Ontario
  • L4K 0E3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WCNNYSE (New York Stock Exchange)YesNew Common StockUSUSDJun 2016
WCNTSX (The Toronto Stock Exchange)YesNew Common StockCACADJun 2016
UI51DB (Deutsche Boerse AG)YesNew Common StockDEEURJun 2016

Biography

Waste Connections, Inc. provides waste collection, transfer, disposal, and recycling services in the United States and Canada. The company operates through six segments: Southern, Western, Eastern, Canada, Central, and Exploration and Production (E&P). It offers collection services to residential, commercial, municipal, industrial, and E&P customers; landfill disposal services; and recycling services for various recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles, and ferrous and aluminum metals. The company also owns and operates transfer stations that receive compact and load waste to be transported to landfills or treatment facilities through truck, rail, or barge; and intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. In addition, it provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flowback water; production wastes and produced water during a well’s operating life; contaminated soils that require treatment during site reclamation; and substances that require clean-up after a spill, reserve pit clean-up, or pipeline rupture. Further, the company offers container and chassis sales and leasing services to its customers. As of December 31, 2018, it owned or operated a network of 279 solid waste collection operations; 113 transfer stations; 56 municipal solid waste (MSW) landfills; 11 E&P waste landfills; 14 non-MSW landfills; 64 recycling operations; 4 intermodal operations; 22 E&P liquid waste injection wells; and 19 E&P waste treatment and oil recovery facilities. It also operated additional 49 transfer stations, 12 MSW landfills, and 2 intermodal operations. Waste Connections, Inc. was founded in 1997 and is based in Vaughan, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 23:00
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.