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.

Thermal Energy International, Inc.

TFI International, Inc.

Mullen Group Ltd.

Redishred Capital Corp.

Waste Connections, Inc.

Titanium Transportation Group, Inc.

Questor Technology, Inc.

Char Technologies Ltd.

Vertex Resource Group Ltd.

Environmental Waste International, Inc.

Why is Waste Connections, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 5.26

Healthy long term growth as Net Sales has grown by an annual rate of 12.86%

Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at CAD 3,472.94 MM
DIVIDEND PER SHARE(HY) Highest at CAD 9.22
RAW MATERIAL COST(Y) Fallen by -0.63% (YoY)

With ROE of 13.36%, it has a very expensive valuation with a 5.12 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 -10.53%, its profits have fallen by -4.5%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 9.85% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -10.53% 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Waste Connections, Inc.

-10.21%

-0.01

22.89%

S&P/TSX 60

29.63%

2.33

12.07%

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)

5.63

Debt to EBITDA (avg)

3.01

Net Debt to Equity (avg)

1.04

Sales to Capital Employed (avg)

0.55

Tax Ratio

24.07%

Dividend Payout Ratio

31.14%

Pledged Shares

Institutional Holding

90.15%

ROCE (avg)

9.55%

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

5.12

EV to EBIT

29.28

EV to EBITDA

16.98

EV to Capital Employed

2.94

EV to Sales

5.28

PEG Ratio

Dividend Yield

ROCE (Latest)

10.04%

ROE (Latest)

13.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 3,472.94 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 9.22

RAW MATERIAL COST(Y)

Fallen by -0.63% (YoY

NET SALES(Q)

Highest at CAD 3,546.25 MM

EPS(Q)

Highest at CAD 1.62

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 120.44 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.22 times

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

Operating Cash Flow

Highest at CAD 3,472.94 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 9.22 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 3,546.25 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

EPS

Highest at CAD 1.62

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -0.63% (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

Depreciation

Highest at CAD 451.14 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

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

Debt-Equity Ratio

Highest at 120.44 %

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

Debtors Turnover Ratio

Lowest at 9.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CAD 0.09 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income