NYSE:WCN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with limited growth.


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


Market Performance


7 Day Return

0.9%

NYSE:WCN

-0.3%

US Commercial Services

-0.7%

US Market


1 Year Return

16.1%

NYSE:WCN

5.8%

US Commercial Services

-0.5%

US Market

WCN outperformed the Commercial Services industry which returned 5.9% over the past year.

WCN outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

WCNIndustryMarket
7 Day0.9%-0.3%-0.7%
30 Day-2.2%-0.9%-3.0%
90 Day-2.2%3.4%0.9%
1 Year17.0%16.1%9.9%5.8%1.7%-0.5%
3 Year81.4%77.2%64.3%53.2%39.5%30.4%
5 Yearn/a96.4%76.6%54.1%37.0%

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

Valuation

Is Waste Connections undervalued based on future cash flows and its price relative to the stock market?

43.72x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Waste Connections's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Waste Connections's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Waste Connections is overvalued based on earnings compared to the US Commercial Services industry average.

Waste Connections is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Waste Connections is poor value based on expected growth next year.


Price Based on Value of Assets

Waste Connections is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

How is Waste Connections expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Waste Connections's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).

Waste Connections's earnings are expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).

Waste Connections's revenue growth is positive but not above the United States of America market average.

Waste Connections's earnings growth is expected to exceed the United States of America market average.

Waste Connections's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Waste Connections is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Waste Connections performed over the past 5 years?

36.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Waste Connections has delivered over 20% year on year earnings growth in the past 5 years.

Waste Connections's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Waste Connections's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.


Return on Equity

Waste Connections has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Waste Connections used its assets less efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Waste Connections has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Waste Connections's financial position?


Financial Position Analysis

Waste Connections is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Waste Connections's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Waste Connections's level of debt (61.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (91.1% vs 61.7% today).

Debt is well covered by operating cash flow (36.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

0.78%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Waste Connections's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Waste Connections's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Waste Connections is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Waste Connections is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Waste Connections's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of Waste Connections's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Waste Connections's salary, the management and board of directors tenure and is there insider trading?

10.0yrs

Average management tenure


CEO

Worthing Jackman (55yo)

0.5yrs

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

Worthing's remuneration is lower than average for companies of similar size in United States of America.

Worthing's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

10.0yrs

Average Tenure

55yo

Average Age

The average tenure for the Waste Connections management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.4yrs

Average Tenure

63yo

Average Age

The average tenure for the Waste Connections board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Waste Connections individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,570,02913 Aug 19
Patrick Shea
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares17,000
Max PriceUS$92.36
SellUS$1,570,02912 Aug 19
Patrick Shea
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares17,000
Max PriceUS$92.36
SellUS$495,00008 Aug 19
Eric Hansen
EntityIndividual
Role
Chief Information Officer
Senior VP & Chief Information Officer
Shares5,500
Max PriceUS$90.00
SellUS$897,43206 Aug 19
James Little
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Engineering & Disposal
Shares10,000
Max PriceUS$89.74
SellUS$1,262,71706 Aug 19
Darrell Chambliss
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares14,100
Max PriceUS$90.01
SellUS$541,72005 Aug 19
William Razzouk
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$90.29
SellUS$518,80006 Sep 18
Darrell Chambliss
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares6,485
Max PriceUS$80.00
SellUS$943,68806 Sep 18
Michael Harlan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares11,900
Max PriceUS$79.30

Ownership Breakdown


Management Team

  • Ron Mittelstaedt (56yo)

    Executive Chairman

    • Tenure: 21.6yrs
    • Compensation: US$13.69m
  • Darrell Chambliss (55yo)

    COO & Executive VP

    • Tenure: 15.8yrs
    • Compensation: US$1.92m
  • James Little (57yo)

    Senior Vice President of Engineering & Disposal

    • Tenure: 10.5yrs
    • Compensation: US$1.17m
  • David Hall (61yo)

    Senior Vice President of Sales & Marketing

    • Tenure: 13.8yrs
  • Eric Hansen (54yo)

    Senior VP & Chief Information Officer

    • Tenure: 15.1yrs
  • David Eddie (49yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 9.5yrs
    • Compensation: US$1.23m
  • Worthing Jackman (55yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$2.37m
  • Patrick Shea (48yo)

    Executive VP

    • Tenure: 10.5yrs
    • Compensation: US$1.35m
  • Mary Whitney (55yo)

    Senior VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$1.09m
  • Susan Netherton (49yo)

    Vice President of People

    • Tenure: 6.1yrs

Board Members

  • Bill Razzouk (71yo)

    Independent Director

    • Tenure: 21.6yrs
    • Compensation: US$307.47k
  • Sue Lee (67yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$277.34k
  • Ron Mittelstaedt (56yo)

    Executive Chairman

    • Tenure: 21.6yrs
    • Compensation: US$13.69m
  • Michael Harlan (58yo)

    Director

    • Tenure: 21.3yrs
    • Compensation: US$298.80k
  • Ned Guillet (67yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$301.21k
  • Worthing Jackman (55yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$2.37m
  • Larry Hughes (67yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$275.65k
  • Elise Jordan (59yo)

    Director

    • Tenure: 0.0yrs

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$24.386b
  • Shares outstanding: 263.60m
  • Website: https://www.wasteconnections.com

Number of Employees


Location

  • Waste Connections, Inc.
  • 3 Waterway Square Place
  • Suite 110
  • The Woodlands
  • Texas
  • 77380
  • United States

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 00:58
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.