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Waste Connections Inc WCN

Morningstar Rating
$139.84 +0.21 (0.15%)
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Company Report

Non-Recurring Landfill-Related Charge Doesn't Affect Our Long-Term Outlook for Waste Connections

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.

Price vs Fair Value

WCN is trading at a 16% premium.
Price
$139.84
Fair Value
$491.00
Uncertainty
Low
1-Star Price
$248.24
5-Star Price
$68.20
Economic Moat
Njmk
Capital Allocation
Ybgmckrf

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 U.S. 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

Trading Information

Previous Close Price
$139.63
Day Range
$138.94140.68
52-Week Range
$126.12145.86
Bid/Ask
$139.16 / $140.07
Market Cap
$36.03 Bil
Volume/Avg
1.2 Mil / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
35.22
Price/Sales
4.59
Dividend Yield
0.75%
Dividend Yield (Forward)
0.82%
Total Yield
0.75%

Company Profile

Waste Connections is the third-largest integrated provider of traditional solid waste and recycling services in the North America, operating 100 active landfills (9 are exploration and production waste landfills and 16 are nonmunicipal waste landfills), 157 transfer stations, and 79 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 2022, 13% 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
22,109

Competitors

Valuation

Metric
WCN
WM
SRCL
Price/Earnings (Normalized)
35.2230.3325.38
Price/Book Value
4.7510.111.83
Price/Sales
4.593.541.69
Price/Cash Flow
17.7414.6013.99
Price/Earnings
WCN
WM
SRCL

Financial Strength

Metric
WCN
WM
SRCL
Quick Ratio
0.610.730.76
Current Ratio
0.730.840.90
Interest Coverage
4.947.281.27
Quick Ratio
WCN
WM
SRCL

Profitability

Metric
WCN
WM
SRCL
Return on Assets (Normalized)
5.99%7.59%3.41%
Return on Equity (Normalized)
14.12%34.32%7.44%
Return on Invested Capital (Normalized)
8.63%12.46%5.60%
Return on Assets
WCN
WM
SRCL

Waste Management Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
WM
Waste Management IncGzck$70.2 Bil
RSG
Republic Services IncCcz$51.1 Bil
VEOEF
Veolia Environnement SAZqzy$22.4 Bil
VEOEY
Veolia Environnement SA ADRCncz$22.4 Bil
GFL
GFL Environmental IncGzggt$10.8 Bil
CLH
Clean Harbors IncYhwszhy$9.2 Bil
CWST
Casella Waste Systems Inc Class AQzkdl$4.9 Bil
SRCL
Stericycle IncHznnb$4.5 Bil
TSPCF
Cleanaway Waste Management LtdQksv$3.7 Bil