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

Vitreous Glass, Inc.

Redishred Capital Corp.

Thermal Energy International, Inc.

Mullen Group Ltd.

Waste Connections, Inc.

TFI International, Inc.

Titanium Transportation Group, Inc.

Questor Technology, Inc.

Char Technologies Ltd.

Vertex Resource Group Ltd.

Environmental Waste International, Inc.

Why is Waste Connections, Inc. ?

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 781.93
CASH AND EQV(HY) Lowest at CAD 219.94 MM
DEBT-EQUITY RATIO (HY) Highest at 115.7 %

With ROE of 13.36%, it has a very expensive valuation with a 4.93 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 -15.02%, its profits have fallen by -4.5%

Below par performance in long term as well as near term

Along with generating -15.02% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Waste Connections, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Waste Connections, Inc.

-15.02%

-0.27

22.42%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.86%

EBIT Growth (5y)

15.28%

EBIT to Interest (avg)

5.26

Debt to EBITDA (avg)

2.99

Net Debt to Equity (avg)

1.04

Sales to Capital Employed (avg)

0.55

Tax Ratio

20.09%

Dividend Payout Ratio

31.14%

Pledged Shares

Institutional Holding

90.15%

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

4.93

EV to EBIT

28.42

EV to EBITDA

16.48

EV to Capital Employed

2.85

EV to Sales

5.13

PEG Ratio

Dividend Yield

ROCE (Latest)

10.04%

ROE (Latest)

13.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 3,344.54 MM

ROCE(HY)

Highest at 12.8%

DIVIDEND PER SHARE(HY)

Highest at CAD 9.45

DIVIDEND PAYOUT RATIO(Y)

Highest at 40.73%

RAW MATERIAL COST(Y)

Fallen by -1% (YoY

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 781.93

CASH AND EQV(HY)

Lowest at CAD 219.94 MM

DEBT-EQUITY RATIO (HY)

Highest at 115.7 %

OPERATING PROFIT(Q)

Lowest at CAD 936.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 28.79 %

PRE-TAX PROFIT(Q)

Lowest at CAD 393.43 MM

NET PROFIT(Q)

Lowest at CAD 304.33 MM

EPS(Q)

Lowest at CAD 1.18

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

Operating Cash Flow

Highest at CAD 3,344.54 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 9.45 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 40.73%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1% (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 Coverage Ratio

Lowest at 781.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CAD 936.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 28.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 393.43 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 304.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 1.18

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Cash and Eqv

Lowest at CAD 219.94 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 115.7 %

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