Waste Connections Stock Analysis, Valuation (NYSE:WCN)

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$70.93 $1.93 (2.8%) WCN stock closing price Feb 16, 2018 (Closing)
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Waste Connections
Updated on : Feb 16, 2018
previous close
WCN 70.9 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Waste Removal Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
19.5%
Operating Profit
Operating Margin:
14.6%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$336.5M
Net Income:
$123.2M
Dividend Yield
WCN dividend yield:
0.85%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WCN PS :
4.1
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.9%
Return on Equity:
6%
Free Cash Flow Margin:
18.8%
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Waste Connections Stock Analysis

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Watch the robo advisor video of Waste Connections stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for WCN stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Waste Connections Inc (USA) Stock Rating 2.9/5

Amigobulls WCN stock analysis takes into account various financial ratios like relative valuation, Waste Connections revenue, growth and return on equity based on latest quarter 2017 Q3 financial statements. We also check Waste Connections dividend performance. Waste Connections valuation forms a crucial part of our stock analysis. Waste Connections stock rating is our opinion about the business fundamentals of the company.

Should you buy WCN stock?

  • Waste Connections's revenue growth came in at 11.2% in 2017 Q3.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 19.5%.
  • The TTM operating margin was good at 14.6% for Waste Connections.
  • Net margins stood at a healthy 7.7% (average) for Waste Connections in the Trailing Twelve Months.
  • The company has an operating cash flow which is 2.7 times the net income. We see this as a positive signal.
  • The company has a good Free Cash Flow (FCF) margin of 18.8%.

Should you sell WCN stock?

  • Trading at a PE ratio of 33.9, WCN stock is overvalued in comparison to industry average multiple of 21.8.
  • The company is trading at a price to sales multiple of 4.1, which is overvalued in comparison to the Waste Removal Services industry average multiple of 1.7.

Comments on this video and Waste Connections stock

Amigobulls Waste Connections stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

Waste Connections revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about WCN stock.