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Waste Connections Inc WCN

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Stock XTSE Rating as of
CAD 239.52 −1.94 (0.80%)
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As of Delayed Price Closed

Company Report

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Strong Pricing and Margin Expansion Continue for Wide-Moat Waste Connections

Brian Bernard

As a fully integrated waste hauler, Waste Connections leverages its large network of collection routes that bestows significant control over the waste stream, funneling trash from commercial, industrial, and residential end markets into its valuable landfill assets. Waste Connections' secondary and rural market strategy faces less competition and delivers higher profit margins relative to larger, urban-focused competitors Waste Management and Republic Services.

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Price vs Fair Value

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WCN is trading within a range we consider fairly valued.
Price
CAD 239.52
Fair Value
CAD 122.00
Uncertainty
Low
1-Star Price
CAD 959.57
5-Star Price
CAD 882.70
Economic Moat
Gssp
Capital Allocation
Vwdwxxbd

Bulls Say, Bears Say

Bulls

Waste Connections enjoys strong pricing power—a feature of its wide economic moat. This pricing power has allowed the firm to defend profit margins in the current inflationary environment.

Bears

Many US municipalities are gradually pushing for greater solid waste reduction and recycling, which could temper the level of higher-margin waste entering Waste Connections’ landfills over the long run.

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News

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Trading Information

Previous Close Price
CAD 241.46
Day Range
CAD 239.16–241.53
52-Week Range
CAD 174.74–253.95
Bid/Ask
CAD 238.00 / CAD 250.00
Market Cap
CAD 61.79 Bil
Volume/Avg
146,645 / 229,328

Key Statistics

Price/Earnings (Normalized)
38.75
Price/Sales
5.42
Dividend Yield (Trailing)
0.65%
Dividend Yield (Forward)
0.65%
Total Yield
0.65%

Company Profile

Waste Connections is the third-largest integrated provider of traditional solid waste and recycling services in the North America, operating 103 active landfills (9 are exploration and production waste landfills and 16 are nonmunicipal waste landfills), 157 transfer stations, and 81 recycling operations. The firm serves residential, commercial, industrial, and energy end markets. Waste Connections entered the Canadian market with its 2016 merger with Progressive Waste. In 2023, 12% of consolidated revenue was generated from the firm's Canadian segment.
Sector
Industrials
Industry
Waste Management
Stock Style Box
Large Growth
Total Number of Employees
22,539
Website
https://www.wasteconnections.com

Competitors

Valuation

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Metric
WCN
RSG
WM
Price/Earnings (Normalized)
 38.7533.3929.98
Price/Book Value
 5.655.7311.19
Price/Sales
 5.424.074.01
Price/Cash Flow
 19.9916.1916.03
Price/Earnings
WCN
RSG
WM

Financial Strength

Metric
WCN
RSG
WM
Quick Ratio
 0.590.540.95
Current Ratio
 0.700.591.07
Interest Coverage
 4.635.457.29
Quick Ratio
WCN
RSG
WM

Profitability

Metric
WCN
RSG
WM
Return on Assets (Normalized)
 6.44%6.15%8.51%
Return on Equity (Normalized)
 15.29%17.97%39.30%
Return on Invested Capital (Normalized)
 9.27%9.93%13.78%
Return on Assets
WCN
RSG
WM

Waste Management Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Waste Management Inc
WM
YlvxrmxsvMpdhd$83.5 Bil
 Republic Services Inc
RSG
SkjbgpqmWsczv$63.0 Bil
 Waste Connections Inc
WCN
PdhdnbljXzrm$45.5 Bil
 Veolia Environnement SA
VEOEF
—Jwykw$23.7 Bil
 Veolia Environnement SA ADR
VEOEY
DztvfhhByfhfzt$23.7 Bil
 GFL Environmental Inc
GFL
—Bmdkrj$16.0 Bil
 Clean Harbors Inc
CLH
VwrrpspKrhf$13.3 Bil
 Casella Waste Systems Inc Class A
CWST
—Yxypzt$6.3 Bil
 Stericycle Inc
SRCL
QvhltswYnjrj$5.7 Bil
 Cleanaway Waste Management Ltd
TSPCF
—Npl$4.4 Bil

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