Waste Connections posted a good set of results in the second quarter as adjusted EPS came in at $1.50 per share, 16% higher on a year-over-year basis. Strong core pricing, acquisition volume, and fuel surcharges led to continued strength in margins for the quarter.
Waste Connections enjoys strong pricing power, a feature of its wide economic moat and favorable market mix. This should allow the firm to defend profit margins during difficult macroeconomic environments.
More 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.
|
Metric
|
WCN
|
RSG
|
WM
|
|---|---|---|---|
Price/Earnings (Normalized) | 30.45 | 29.77 | 29.02 |
Price/Book Value | 5.29 | 5.46 | 9.05 |
Price/Sales | 4.36 | 3.94 | 3.53 |
Price/Cash Flow | 15.28 | 13.85 | 13.25 |
|
Metric
|
WCN
|
RSG
|
WM
|
|---|---|---|---|
Quick Ratio | 0.55 | 0.58 | 0.80 |
Current Ratio | 0.66 | 0.64 | 0.91 |
Interest Coverage | 4.91 | 5.32 | 5.00 |
|
Metric
|
WCN
|
RSG
|
WM
|
|---|---|---|---|
Return on Assets (Normalized) | 6.65% | 6.53% | 7.34% |
Return on Equity (Normalized) | 17.20% | 18.66% | 34.59% |
Return on Invested Capital (Normalized) | 9.57% | 10.61% | 12.35% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Waste Management Inc
WM
| LOCK|w?Wctrb | LOCK|Wt | $90B | |||
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RSG
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VEOEF
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VEOEY
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CLH
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GFL
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UMICF
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| Umicore SA ADR
UMICY
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United States