Waste Connections
Market Cap
US$26.9b
Last Updated
2021/01/19 23:29 UTC
Data Sources
Company Financials +
Executive Summary
Waste Connections, Inc. provides waste collection, transfer, disposal, and recycling services in the United States and Canada. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with moderate growth potential.
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 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.
Market Performance
7 Day Return
-0.5%
WCN
-2.5%
US Commercial Services
-0.4%
US Market
1 Year Return
4.6%
WCN
6.0%
US Commercial Services
19.5%
US Market
Return vs Industry: WCN underperformed the US Commercial Services industry which returned 6% over the past year.
Return vs Market: WCN underperformed the US Market which returned 19.5% over the past year.
Shareholder returns
| WCN | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | -2.5% | -0.4% |
| 30 Day | 1.4% | -1.8% | 2.3% |
| 90 Day | 0.2% | 3.7% | 12.7% |
| 1 Year | 5.4%4.6% | 7.5%6.0% | 22.3%19.5% |
| 3 Year | 45.2%41.9% | 40.5%30.8% | 44.4%34.8% |
| 5 Year | n/a | 136.7%111.8% | 128.7%103.3% |
Long-Term 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
6 days ago | Simply Wall St
Here's Why Waste Connections (NYSE:WCN) Can Manage Its Debt Responsibly3 weeks ago | Simply Wall St
Waste Connections, Inc. (NYSE:WCN) Shares Could Be 29% Above Their Intrinsic Value Estimate1 month ago | Simply Wall St
Are Waste Connections's (NYSE:WCN) Statutory Earnings A Good Reflection Of Its Earnings Potential?Valuation
Is Waste Connections undervalued compared to its fair value and its price relative to the market?
130.26x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WCN ($101.87) is trading above our estimate of fair value ($79.46)
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 (129.5x) compared to the US Commercial Services industry average (25.2x).
PE vs Market: WCN is poor value based on its PE Ratio (129.5x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: WCN is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: WCN is overvalued based on its PB Ratio (4x) compared to the US Commercial Services industry average (2.2x).
Next Steps
Future Growth
How is Waste Connections forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
61.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WCN's forecast earnings growth (63.2% per year) is above the savings rate (2%).
Earnings vs Market: WCN's earnings (63.2% per year) are forecast to grow faster than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WCN's revenue (6.9% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: WCN's revenue (6.9% 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 (12.1%).
Next Steps
Past Performance
How has Waste Connections performed over the past 5 years?
30.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WCN has a large one-off loss of $481.8M impacting its September 30 2020 financial results.
Growing Profit Margin: WCN's current net profit margins (3.8%) are lower than last year (10.7%).
Past Earnings Growth Analysis
Earnings Trend: WCN has become profitable over the past 5 years, growing earnings by 30% per year.
Accelerating Growth: WCN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WCN had negative earnings growth (-63.4%) over the past year, making it difficult to compare to the Commercial Services industry average (-9%).
Return on Equity
High ROE: WCN's Return on Equity (3.1%) is considered low.
Next Steps
Financial Health
How is Waste Connections's financial position?
Financial Position Analysis
Short Term Liabilities: WCN's short term assets ($1.6B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: WCN's short term assets ($1.6B) do not cover its long term liabilities ($6.0B).
Debt to Equity History and Analysis
Debt Level: WCN's debt to equity ratio (72.1%) is considered high.
Reducing Debt: WCN's debt to equity ratio has reduced from 101.6% to 72.1% over the past 5 years.
Debt Coverage: WCN's debt is well covered by operating cash flow (32.1%).
Interest Coverage: WCN's interest payments on its debt are well covered by EBIT (6x coverage).
Balance Sheet
Next Steps
Dividend
What is Waste Connections's current dividend yield, its reliability and sustainability?
0.80%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WCN's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: WCN's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, WCN has been paying a dividend for less than 10 years.
Growing Dividend: WCN's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (94%), WCN's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WCN's dividends in 3 years are forecast to be well covered by earnings (29.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.9yrs
Average management tenure
CEO
Worthing Jackman (56 yo)
1.5yrs
Tenure
US$3,408,374
Compensation
Mr. Worthing F. Jackman has served as a Chief Executive Officer at Waste Connections, Inc. since July 2019 and has been its President since July 01, 2018. He serves as a Director at Waste Connections, Inc...
CEO Compensation Analysis
Compensation vs Market: Worthing's total compensation ($USD3.41M) is below average for companies of similar size in the US market ($USD10.55M).
Compensation vs Earnings: Worthing's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 23yrs | US$3.29m | 0.054% $ 14.6m | |
| President | 1.5yrs | US$3.41m | 0.043% $ 11.6m | |
| Senior VP & CFO | 2.5yrs | US$1.38m | 0.017% $ 4.5m | |
| COO & Executive VP | 17.25yrs | US$1.89m | 0.038% $ 10.3m | |
| Executive VP | 16.92yrs | US$1.43m | 0.0083% $ 2.2m | |
| Executive Vice President of Engineering & Disposal | 11.92yrs | US$1.41m | 0.012% $ 3.3m | |
| Chief Accounting Officer & Senior VP | 10.92yrs | US$1.23m | 0.018% $ 5.0m | |
| Senior VP & Chief Information Officer | 16.5yrs | no data | 0.0019% $ 519.9k | |
| Senior Vice President of Sales & Marketing | 15.25yrs | no data | 0.0048% $ 1.3m | |
| Vice President of People | 7.5yrs | no data | no data | |
| Chief Tax Officer & Senior VP | 8.83yrs | no data | 0.011% $ 2.9m | |
| President of Canada | no data | no data | no data |
10.9yrs
Average Tenure
56yo
Average Age
Experienced Management: WCN's management team is seasoned and experienced (10.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 23yrs | US$3.29m | 0.054% $ 14.6m | |
| President | 1.5yrs | US$3.41m | 0.043% $ 11.6m | |
| Independent Director | 23yrs | US$284.51k | 0.0055% $ 1.5m | |
| Independent Director | 6.67yrs | US$259.51k | 0.0037% $ 1.0m | |
| Lead Independent Director | no data | US$284.51k | 0.0028% $ 757.0k | |
| Independent Director | 13.83yrs | US$274.51k | 0.012% $ 3.3m | |
| Independent Director | 6.67yrs | US$259.51k | 0.0036% $ 980.6k | |
| Independent Director | 1.42yrs | US$243.87k | 0.00032% $ 86.2k |
6.7yrs
Average Tenure
64yo
Average Age
Experienced Board: WCN's board of directors are considered experienced (6.7 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$26.940b
- Shares outstanding: 262.82m
- Website: https://www.wasteconnections.com
Number of Employees
Location
- Waste Connections, Inc.
- Texas
- United States
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,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 23:29 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/09/30 |
| 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.