Waste Connections Stock Analysis, Valuation (NYSE:WCN)

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$64.09 $0.47 (0.74%) WCN stock closing price Aug 21, 2017 (Closing)
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Waste Connections
Updated on : Aug 21, 2017
previous close
WCN 64.1 (0%)
S&P 500 2428.4 (0%)
Closing Price On: Aug 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Waste Removal Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
18.8%
Operating Profit
Operating Margin:
13.7%
Sector Average:
8.7%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$264.4M
Net Income:
$123.7M
Dividend Yield
WCN dividend yield:
0.72%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
FCF Margin
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WCN PS :
3.8
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.5%
Return on Equity:
5.5%
Free Cash Flow Margin:
13.2%
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Waste Connections Analysis Video

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View Waste Connections stock analysis video. This is our WCN analyst opinion covering the buy and sell arguments for WCN stock.

Waste Connections Inc (USA) Stock Rating (2.8/5)

Our Waste Connections stock opinion is based on fundamentals of the company. This Waste Connections stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy WCN stock?

  • The Year Over Year (YoY) revenue growth for Waste Connections was 61.6% in 2017 Q2.
  • Revenue growth has been tremendous with a compounded annual growth of 18.8% over the last 5 years.
  • The TTM operating margin was good at 13.7% for Waste Connections.
  • LTM Net margins were good at 7.1% for Waste Connections.
  • The operating cash flow looks good at 2.1 times the net income.
  • The company has a healthy free cash flow margin of 13.2%.

Should you sell WCN stock?

  • WCN stock is trading at a PE ratio of 32.5, which is worse than the industry average multiple of 21.9.
  • The company is trading at a price to sales multiple of 3.8, which is overvalued in comparison to the Waste Removal Services industry average multiple of 1.6.
  • Waste Connections has a low ROIC (Return on Invested Capital) of 4.5%.
  • The TTM ROE (Return On Equity) for Waste Connections is not so attractive at 5.5%.

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