Waste Connections, Inc. (WCN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Waste Connections, Inc. ?

The company declared very negative results in Dec'24 after positive results in Sep'24

NET PROFIT(9M) At CAD 493.35 MM has Grown at -52.57%
INTEREST(9M) At CAD 330.43 MM has Grown at 13.4%

With ROE of 8.09%, it has a very expensive valuation with a 5.40 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.84%, its profits have fallen by -34.7%

Below par performance in long term as well as near term

Along with generating -1.84% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Waste Connections, Inc. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Waste Connections, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Waste Connections, Inc.

-16.7%

0.19

17.72%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.61%

EBIT Growth (5y)

16.14%

EBIT to Interest (avg)

5.26

Debt to EBITDA (avg)

2.99

Net Debt to Equity (avg)

1.04

Sales to Capital Employed (avg)

0.54

Tax Ratio

20.09%

Dividend Payout Ratio

31.14%

Pledged Shares

Institutional Holding

90.83%

ROCE (avg)

8.68%

ROE (avg)

10.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.18

EV to EBIT

28.61

EV to EBITDA

16.86

EV to Capital Employed

3.02

EV to Sales

5.34

PEG Ratio

0.46

Dividend Yield

ROCE (Latest)

10.55%

ROE (Latest)

13.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 3,373.16 MM

PRE-TAX PROFIT(Q)

At CAD 482.88 MM has Grown at 222.16%

NET PROFIT(Q)

At CAD 366.04 MM has Grown at 232.86%

ROCE(HY)

Highest at 13.3%

DIVIDEND PER SHARE(HY)

Highest at CAD 9.23

RAW MATERIAL COST(Y)

Fallen by -7.34% (YoY

-3What is not working for the Company

CASH AND EQV(HY)

Lowest at CAD 226.63 MM

DEBT-EQUITY RATIO (HY)

Highest at 110.36 %

INTEREST(Q)

Highest at CAD 119.7 MM

Here's what is working for Waste Connections, Inc.

Pre-Tax Profit

At CAD 482.88 MM has Grown at 222.16%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 366.04 MM has Grown at 232.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 3,373.16 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend per share

Highest at CAD 9.23 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -7.34% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Waste Connections, Inc.

Interest

Highest at CAD 119.7 MM

in the last five periods and Increased by 7.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Cash and Eqv

Lowest at CAD 226.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 110.36 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio