Waste Connections reported an inflection in waste volumes and continued pricing strength, improving the outlook. Shares were up 9% as the market was pleasantly surprised by volume trends, the margin outlook, and resilient pricing power.
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
|
VIE
|
RSG
|
|---|---|---|---|
Price/Earnings (Normalized) | 167.06 | 18.79 | 33.33 |
Price/Book Value | 5.84 | 3.30 | 6.12 |
Price/Sales | 4.81 | 0.50 | 4.41 |
Price/Cash Flow | 17.00 | 4.54 | 15.51 |
|
Metric
|
WCN
|
VIE
|
RSG
|
|---|---|---|---|
Quick Ratio | 0.56 | 0.74 | 0.58 |
Current Ratio | 0.67 | 0.82 | 0.64 |
Interest Coverage | 5.00 | 3.54 | 5.32 |
|
Metric
|
WCN
|
VIE
|
RSG
|
|---|---|---|---|
Return on Assets (Normalized) | 6.72% | 2.63% | 6.53% |
Return on Equity (Normalized) | 17.73% | 27.03% | 18.66% |
Return on Invested Capital (Normalized) | 9.74% | 7.42% | 10.61% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Waste Management Inc
WM
| LOCK|#?v&Q% | LOCK|lMJ | $96B | |||
| Republic Services Inc
RSG
| LOCK|y^%P&^& | LOCK|>y% | $74B | |||
| Waste Connections Inc
WCN
| LOCK|^wZJvm | LOCK|&& | $47B | |||
| Veolia Environnement SA
VEOEF
| — | LOCK|G@p& | $27B | |||
| Veolia Environnement SA ADR
VEOEY
| LOCK|cM?d%BR | LOCK|h%b#! | $27B | |||
| GFL Environmental Inc
GFL
| — | LOCK|bWGj | $20B | |||
| Clean Harbors Inc
CLH
| LOCK|$dDfGC | LOCK|Hm | $17B | |||
| Casella Waste Systems Inc Class A
CWST
| — | LOCK|&c>s | $6B | |||
| Cleanaway Waste Management Ltd
TSPCF
| — | LOCK|^BT | $5B | |||
| Umicore SA ADR
UMICY
| — | LOCK|Lv% | $5B |
United States