WCNWaste Connections demonstrates strong financial health and a stable business model in a growing essential services sector. While valuation metrics are somewhat stretched, consistent performance and strategic acquisitions support a positive outlook, warranting a 'Buy' rating.
Waste Connections is well-positioned to benefit from secular trends in waste management, including increasing population, urbanization, and a growing focus on recycling and sustainable disposal methods. Its critical service nature provides resilience.
Waste Connections exhibits strong profitability, consistent revenue growth, and a robust balance sheet with manageable debt levels. Its ability to generate significant free cash flow further enhances its financial strength.
The stock is trading within its 52-week range and shows mixed signals across different timeframes. While the long-term trend appears positive, short-to-medium term indicators suggest caution or a period of consolidation.
| Factor | Score |
|---|---|
| Essential Services Demand | 90 |
| Environmental Regulations & Sustainability | 70 |
| Infrastructure & Technology Adoption | 75 |
| Consolidation & Acquisitions | 80 |
| Energy Transition (E&P Waste) | 65 |
| Factor | Score |
|---|---|
| Valuation | 45 |
| Profitability | 65 |
| Growth | 85 |
| Balance Sheet Health | 70 |
| Cash Flow | 88 |
| Factor | Score |
|---|---|
| Trend Analysis | 70 |
| Momentum | 75 |
| Volume Confirmation | 70 |
| Support & Resistance | 60 |
Consistent Earnings Beat
The company has a strong track record of beating earnings estimates, with 10 out of the last 12 quarters exceeding expectations, demonstrating reliable earnings generation.
Reasonable Valuation Multiples
The current P/E ratio (TTM) of 76.21 is high but can be justified by the company's strong growth in revenue and earnings. The Price/Sales (PS) ratio of 5.6 suggests investors are willing to pay a premium for its sales.
High Price-to-Earnings Ratio
The trailing P/E ratio of 76.21 is significantly high, suggesting that the stock may be overvalued relative to its current earnings. This could lead to increased volatility if growth expectations are not met.
Deteriorating Margins
Net margins have declined from 11.6% in 2022 to 6.9% in 2024, indicating potential pressure on profitability due to rising costs or competitive pricing.
May 2025
7
Ex-Dividend Date
May 2025
22
Next Dividend Date
October 2025
23
Next Earnings Date
H: $1.46
A: $1.38
L: $1.35
H: 2.49B
A: 2.47B
L: 2.44B
Waste Connections, Inc. provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. It offers collection services to residential, commercial, municipal, industrial, and exploration and production (E&P) customers; landfill disposal services; and recycling services for various recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles, and ferrous and aluminum metals. The company owns and operates transfer stations that receive compact and/or load waste to be transported to landfills or treatment facilities through truck, rail, or barge; and intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. In addition, it provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flowback water; production wastes and produced water during a well's operating life; contaminated soils that require treatment during site reclamation; and substances, which require clean-up after a spill, reserve pit clean-up, or pipeline rupture. Further, the company offers leasing services. Waste Connections, Inc. was founded in 1997 and is based in Woodbridge, Canada.
211.55 USD
The 39 analysts offering 1 year price forecasts for WCN have a max estimate of 227.00 and a min estimate of 150.00.