WCN

Waste ConnectionsNYSE:WCN Stock Report

Market Cap

US$33.3b

7D

-3.3%

1Y

26.3%

Updated

18 Sep, 2021

Data

Company Financials +
WCN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Waste Connections
Historical stock prices
Current Share PriceUS$127.71
52 Week HighUS$97.02
52 Week LowUS$133.48
Beta0.71
1 Month Change0.90%
3 Month Change8.06%
1 Year Change26.35%
3 Year Change59.00%
5 Year Change157.62%
Change since IPO185.15%

Recent News & Updates

Aug 19

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.

Aug 06
Investors Will Want Waste Connections' (NYSE:WCN) Growth In ROCE To Persist

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

WCNUS Commercial ServicesUS Market
7D-3.3%-1.5%-0.6%
1Y26.3%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

Is WCN's price volatile compared to industry and market?
WCN volatility
WCN Beta0.71
Industry Beta1.04
Market Beta1

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

FoundedEmployeesCEOWebsite
199718,933Worthing Jackmanhttps://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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.