Waste Connections
Market Cap
US$27.2b
Last Updated
2020/02/23 01:51 UTC
Data Sources
Company Financials +
Executive Summary
Waste Connections, Inc. provides waste collection, transfer, disposal, and recycling services in the United States and Canada.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with acceptable 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: WCN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.5%
WCN
-1.7%
US Commercial Services
-1.1%
US Market
1 Year Return
23.9%
WCN
19.7%
US Commercial Services
17.9%
US Market
Return vs Industry: WCN exceeded the US Commercial Services industry which returned 19.7% over the past year.
Return vs Market: WCN exceeded the US Market which returned 17.9% over the past year.
Shareholder returns
| WCN | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | -1.7% | -1.1% |
| 30 Day | 5.0% | 1.8% | 1.4% |
| 90 Day | 15.5% | 7.4% | 6.9% |
| 1 Year | 24.8%23.9% | 23.8%19.7% | 20.3%17.9% |
| 3 Year | 81.6%77.5% | 63.0%52.3% | 47.8%38.3% |
| 5 Year | n/a | 101.9%80.4% | 71.9%53.0% |
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
3 days ago | Simply Wall St
Eric Hansen Is The Senior VP & Chief Information Officer of Waste Connections, Inc. (NYSE:WCN) And They Just Sold 74% Of Their Shares1 week ago | Simply Wall St
What Kind Of Shareholders Own Waste Connections, Inc. (NYSE:WCN)?3 weeks ago | Simply Wall St
Why We’re Not Keen On Waste Connections, Inc.’s (NYSE:WCN) 7.3% Return On CapitalValuation
Is Waste Connections undervalued compared to its fair value and its price relative to the market?
10.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WCN ($103.33) is trading below our estimate of fair value ($116.02)
Significantly Below Fair Value: WCN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: WCN is poor value based on its PE Ratio (48.1x) compared to the Commercial Services industry average (26.9x).
PE vs Market: WCN is poor value based on its PE Ratio (48.1x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: WCN is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: WCN is overvalued based on its PB Ratio (3.9x) compared to the US Commercial Services industry average (1.8x).
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: WCN's forecast earnings growth (12.1% per year) is above the savings rate (1.7%).
Earnings vs Market: WCN's earnings (12.1% per year) are forecast to grow slower than the US market (14.1% per year).
High Growth Earnings: WCN's earnings are forecast to grow, but not significantly.
Revenue vs Market: WCN's revenue (6.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: WCN'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: WCN'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: WCN has high quality earnings.
Growing Profit Margin: WCN's current net profit margins (10.5%) are lower than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: WCN's earnings have grown significantly by 37.1% per year over the past 5 years.
Accelerating Growth: WCN's earnings growth over the past year (3.7%) is below its 5-year average (37.1% per year).
Earnings vs Industry: WCN earnings growth over the past year (3.7%) exceeded the Commercial Services industry -4.6%.
Return on Equity
High ROE: WCN'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: WCN's short term assets ($1.1B) exceed its short term liabilities ($1.0B).
Long Term Liabilities: WCN's short term assets ($1.1B) do not cover its long term liabilities ($5.8B).
Debt to Equity History and Analysis
Debt Level: WCN's debt to equity ratio (63.6%) is considered high.
Reducing Debt: WCN's debt to equity ratio has reduced from 89.3% to 63.6% over the past 5 years.
Debt Coverage: WCN's debt is well covered by operating cash flow (34.9%).
Interest Coverage: WCN's interest payments on its debt are well covered by EBIT (6.6x coverage).
Balance Sheet
Inventory Level: WCN has a high level of physical assets or inventory.
Debt Coverage by Assets: WCN'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
Dividend Yield vs Market
Notable Dividend: WCN's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: WCN's dividend (0.72%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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?
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 US market ($USD10.81M).
Compensation vs Earnings: Worthing's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 22.1yrs | US$13.69m | 0.050% $13.6m | |
| President | 1yrs | US$2.37m | 0.046% $12.6m | |
| Senior VP & CFO | 1.6yrs | US$1.09m | 0.015% $4.2m | |
| COO & Executive VP | 16.3yrs | US$1.92m | 0.036% $9.8m | |
| Executive VP | 16yrs | US$1.35m | 0.0090% $2.5m | |
| Chief Accounting Officer & Senior VP | 10yrs | US$1.23m | 0.016% $4.5m | |
| Senior VP & Chief Information Officer | 15.6yrs | no data | 0.00061% $166.2k | |
| Senior Vice President of Sales & Marketing | 14.3yrs | no data | 0.0038% $1.0m | |
| Vice President of People | 6.6yrs | no data | no data | |
| Executive Vice President of Engineering & Disposal | 11yrs | US$1.17m | 0.0088% $2.4m |
10.5yrs
Average Tenure
55yo
Average Age
Experienced Management: WCN's management team is seasoned and experienced (10.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 22.1yrs | US$13.69m | 0.050% $13.6m | |
| President | 1yrs | US$2.37m | 0.046% $12.6m | |
| Independent Director | 22.1yrs | US$307.47k | 0.0055% $1.5m | |
| Independent Director | 5.8yrs | US$277.34k | 0.0037% $1.0m | |
| Independent Director | 21.8yrs | US$298.80k | 0.0068% $1.9m | |
| Independent Director | 12.9yrs | US$301.21k | 0.016% $4.3m | |
| Independent Director | 5.8yrs | US$275.65k | 0.0036% $986.3k | |
| Director | 0.5yrs | no data | 0.00021% $57.2k |
9.3yrs
Average Tenure
62.5yo
Average Age
Experienced Board: WCN'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: 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 company bio, 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$27.247b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WCN | NYSE (New York Stock Exchange) | Yes | New Common Stock | US | USD | Jun 2016 |
| WCN | TSX (The Toronto Stock Exchange) | Yes | New Common Stock | CA | CAD | Jun 2016 |
| UI51 | DB (Deutsche Boerse AG) | Yes | New Common Stock | DE | EUR | Jun 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, 2019, it owned or operated a network of 300 solid waste collection operations; 124 transfer stations; 60 municipal solid waste (MSW) landfills; 12 E&P waste landfills; 14 non-MSW landfills; 66 recycling operations; 4 intermodal operations; 23 E&P liquid waste injection wells; and 19 E&P waste treatment and oil recovery facilities. It also operated additional 51 transfer stations, 10 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 01:51 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.