| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
WCN Overview
Waste Connections, Inc. provides waste collection, transfer, disposal, and recycling services in the United States and Canada.
Waste Connections Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$127.71 |
| 52 Week High | US$97.02 |
| 52 Week Low | US$133.48 |
| Beta | 0.71 |
| 1 Month Change | 0.90% |
| 3 Month Change | 8.06% |
| 1 Year Change | 26.35% |
| 3 Year Change | 59.00% |
| 5 Year Change | 157.62% |
| Change since IPO | 185.15% |
Recent News & Updates
Waste Connections: A Stable Business For Uncertain Times
The waste management industry is essential with little sensitivity to business cycles. Waste Connections is a responsible consolidator with reasonable debt levels. The company is trading at a slight premium to its peers.
Investors Will Want Waste Connections' (NYSE:WCN) Growth In ROCE To Persist
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Shareholder Returns
| WCN | US Commercial Services | US Market | |
|---|---|---|---|
| 7D | -3.3% | -1.5% | -0.6% |
| 1Y | 26.3% | 26.5% | 33.8% |
Return vs Industry: WCN matched the US Commercial Services industry which returned 26.5% over the past year.
Return vs Market: WCN underperformed the US Market which returned 33.8% over the past year.
Price Volatility
| WCN volatility | |
|---|---|
| WCN Beta | 0.71 |
| Industry Beta | 1.04 |
| Market Beta | 1 |
Stable Share Price: WCN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: WCN's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1997 | 18,933 | Worthing Jackman | https://www.wasteconnections.com |
Waste Connections, Inc. provides waste collection, transfer, disposal, and recycling services in the United States and Canada. The company operates through five segments: Southern, Western, Eastern, Canada, Central, and Corporate. 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.
Valuation
Is Waste Connections undervalued compared to its fair value and its price relative to the market?
53.14x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WCN ($127.71) is trading above our estimate of fair value ($110.63)
Significantly Below Fair Value: WCN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WCN is poor value based on its PE Ratio (53.1x) compared to the US Commercial Services industry average (32.2x).
PE vs Market: WCN is poor value based on its PE Ratio (53.1x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: WCN is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: WCN is overvalued based on its PB Ratio (4.8x) compared to the US Commercial Services industry average (2.7x).
Future Growth
How is Waste Connections forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
14.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WCN's forecast earnings growth (14.2% per year) is above the savings rate (2%).
Earnings vs Market: WCN's earnings (14.2% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: WCN's earnings are forecast to grow, but not significantly.
Revenue vs Market: WCN's revenue (8% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: WCN's revenue (8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WCN's Return on Equity is forecast to be low in 3 years time (13.7%).
Past Performance
How has Waste Connections performed over the past 5 years?
8.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WCN has high quality earnings.
Growing Profit Margin: WCN's current net profit margins (10.9%) are higher than last year (3.8%).
Past Earnings Growth Analysis
Earnings Trend: WCN has become profitable over the past 5 years, growing earnings by 8.4% per year.
Accelerating Growth: WCN's earnings growth over the past year (200.5%) exceeds its 5-year average (8.4% per year).
Earnings vs Industry: WCN earnings growth over the past year (200.5%) exceeded the Commercial Services industry 30.4%.
Return on Equity
High ROE: WCN's Return on Equity (9.1%) is considered low.
Financial Health
How is Waste Connections's financial position?
Financial Position Analysis
Short Term Liabilities: WCN's short term assets ($1.5B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: WCN's short term assets ($1.5B) do not cover its long term liabilities ($6.1B).
Debt to Equity History and Analysis
Debt Level: WCN's debt to equity ratio (70.6%) is considered high.
Reducing Debt: WCN's debt to equity ratio has increased from 68.2% to 70.6% over the past 5 years.
Debt Coverage: WCN's debt is well covered by operating cash flow (31%).
Interest Coverage: WCN's interest payments on its debt are well covered by EBIT (6x coverage).
Balance Sheet
Dividend
What is Waste Connections's current dividend yield, its reliability and sustainability?
0.64%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WCN's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: WCN's dividend (0.64%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: WCN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: WCN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: WCN is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WCN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.6yrs
Average management tenure
CEO
Worthing Jackman (57 yo)
2.17yrs
Tenure
US$5,039,321
Compensation
Mr. Worthing F. Jackman has been Chief Executive Officer at Waste Connections, Inc. since July 2019 and has been its President since July 01, 2018. He serves as a Director at Waste Connections, Inc. since...
CEO Compensation Analysis
Compensation vs Market: Worthing's total compensation ($USD5.04M) is below average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Worthing's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: WCN's management team is seasoned and experienced (11.6 years average tenure).
Board Members
Experienced Board: WCN's board of directors are considered experienced (7.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WCN 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 employee growth, exchange listings and data sources
Key Information
- Name: Waste Connections, Inc.
- Ticker: WCN
- Exchange: NYSE
- Founded: 1997
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Market Cap: US$33.271b
- Shares outstanding: 260.52m
- Website: https://www.wasteconnections.com
Number of Employees
Location
- Waste Connections, Inc.
- 6220 Hwy 7
- Suite 600
- Woodbridge
- Ontario
- L4H 4G3
- Canada
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:03 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.