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Waste Connections (WCN) Stock Analysis

Here is a fundamental analysis of Waste Connections (WCN), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

WCN
GSPC
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Waste Connections (WCN) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Waste Connections (WCN) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Waste Connections (WCN) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WCNIndustry group median
1-Year Return-17.97%-15.17%

Risk

Drawdown

WCN
GSPC
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Waste Connections (WCN) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Waste Connections (WCN) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WCNIndustry group median
1-Year Volatility21.77%38.00%
Beta0.490.84

Company Profile

Company profile fields for Waste Connections (WCN)
Profile ItemWCN
NameWaste Connections Inc.
Country/RegionCanada
GICS SectorIndustrials
GICS Industry GroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
GICS Sub-IndustryEnvironmental & Facilities Services
Market Capitalization39.66 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMay 22, 1998
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Waste Connections (WCN) trades at P/E ratio of 37.98, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

WCN

Commercial & Professional Services industry group

37.98

Group distribution
Max
67.87
WCN
37.98
Q3
37.72
Median
21.61
Q1
14.71
Min
4.85
Largest peers
WCN
37.98
CTAS
37.19
WM
31.76
RSG
30.12
RELX
22.64
PAYX
22.21
ADP
21.10
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Where Waste Connections (WCN) stands on P/E ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Waste Connections (WCN) trades at 4.13 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

WCN

Commercial & Professional Services industry group

4.13

Group distribution
Max
6.40
WCN
4.13
Q3
3.14
Median
1.30
Q1
0.66
Min
0.09
Largest peers
PAYX
9.09
CTAS
6.40
RELX
6.19
ADP
4.19
WCN
4.13
RSG
3.87
WM
3.47
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Where Waste Connections (WCN) stands on P/S ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Waste Connections (WCN) trades at 4.84 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

WCN

Commercial & Professional Services industry group

4.84

Group distribution
Max
8.98
Q3
5.88
WCN
4.84
Median
2.95
Q1
1.89
Min
-2.68
Largest peers
RELX
76.95
CTAS
14.73
ADP
14.27
PAYX
8.98
WM
8.81
RSG
5.40
WCN
4.84
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Where Waste Connections (WCN) stands on P/B ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Waste Connections (WCN) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WCNIndustry group median
Price-to-Earnings Ratio (TTM)37.9821.61
Price-to-Sales Ratio (TTM)4.131.30
Price-to-Book Ratio (MRQ)4.842.95
Free Cash Flow Yield2.67%5.32%

Profitability

Return on Equity (TTM)

Waste Connections (WCN) posts ROE of 13.12%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

WCN

Commercial & Professional Services industry group

13.12%

Group distribution
Max
53.04%
Q3
25.65%
Median
13.99%
WCN
13.12%
Q1
2.65%
Min
-26.88%
Largest peers
ADP
71.21%
RELX
70.51%
CTAS
41.30%
WM
29.94%
RSG
18.35%
WCN
13.12%
PAYX
--
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Where Waste Connections (WCN) stands on ROE within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Waste Connections (WCN) keeps 10.97% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

WCN

Commercial & Professional Services industry group

10.97%

Group distribution
Max
26.63%
Q3
11.56%
WCN
10.97%
Median
6.26%
Q1
1.18%
Min
-13.34%
Largest peers
PAYX
26.63%
RELX
21.53%
ADP
20.12%
CTAS
17.57%
RSG
12.99%
WM
10.99%
WCN
10.97%
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Where Waste Connections (WCN) stands on net margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Waste Connections (WCN) turns 18.75% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

WCN

Commercial & Professional Services industry group

18.75%

Group distribution
Max
37.53%
WCN
18.75%
Q3
17.67%
Median
9.37%
Q1
3.13%
Min
-4.52%
Largest peers
PAYX
44.38%
RELX
31.41%
ADP
30.18%
CTAS
23.22%
RSG
20.20%
WCN
18.75%
WM
17.52%
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Where Waste Connections (WCN) stands on operating margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Waste Connections (WCN) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WCNIndustry group median
Return on Equity (TTM)13.12%13.99%
Return on Assets (TTM)5.47%5.24%
Net Profit Margin (TTM)10.97%6.26%
Operating Profit Margin (TTM)18.75%9.37%
Gross Profit Margin (TTM)42.50%36.48%

Financial Strength

Current Ratio (MRQ)

Waste Connections (WCN) has current ratio of 0.69, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

WCN

Commercial & Professional Services industry group

0.69

Group distribution
Max
3.17
Q3
2.01
Median
1.51
Q1
1.13
WCN
0.69
Min
0.45
Largest peers
CTAS
1.98
PAYX
1.15
ADP
1.04
WM
0.93
WCN
0.69
RSG
0.67
RELX
0.49
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Where Waste Connections (WCN) stands on current ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Waste Connections (WCN) has debt-to-equity ratio of 1.17, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

WCN

Commercial & Professional Services industry group

1.17

Group distribution
Max
2.61
Q3
1.39
WCN
1.17
Median
0.94
Q1
0.45
Min
0.01
Largest peers
RELX
3.04
WM
2.28
PAYX
1.25
RSG
1.18
WCN
1.17
ADP
0.69
CTAS
0.61
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Where Waste Connections (WCN) stands on debt-to-equity ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Waste Connections (WCN) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WCNIndustry group median
Current Ratio (MRQ)0.691.51
Debt-to-Equity Ratio (MRQ)1.170.94
Net Debt / EBITDA3.042.67

Dividends

Dividend Yield (TTM)

Waste Connections (WCN) has dividend yield of 0.90%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

WCN

Commercial & Professional Services industry group

0.90%

Group distribution
Max
5.49%
Q3
2.30%
Median
0.97%
WCN
0.90%
Q1
0.00%
Min
0.00%
Largest peers
PAYX
4.73%
ADP
3.01%
RELX
2.73%
WM
1.61%
RSG
1.19%
CTAS
1.02%
WCN
0.90%
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Where Waste Connections (WCN) stands on dividend yield within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Waste Connections (WCN) has payout ratio of 32.44%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

WCN

Commercial & Professional Services industry group

32.44%

Group distribution
Max
79.70%
Q3
36.60%
WCN
32.44%
Median
16.11%
Q1
0.00%
Min
0.00%
Largest peers
PAYX
95.36%
ADP
60.45%
RELX
57.42%
WM
49.49%
CTAS
36.71%
RSG
35.22%
WCN
32.44%
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Where Waste Connections (WCN) stands on payout ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Waste Connections (WCN) metric values compared with Commercial & Professional Services industry-group medians
MetricCurrent stock: WCNIndustry group median
Dividend Yield (TTM)0.90%0.97%
Dividend Payout Ratio (TTM)32.44%16.11%