Waste Connections Stock Analysis, Valuation (NYSE:WCN)

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$68.99 $0.6 (0.86%) WCN stock closing price Sep 18, 2017 (Closing)
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Waste Connections
Updated on : Sep 18, 2017
previous close
WCN 69 (0%)
S&P 500 2503.9 (0%)
Closing Price On: Sep 18, 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:
8.3%
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:
0.67%
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 :
4.1
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 (2.7/5)

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?

  • Waste Connections's revenue growth came in at 61.6% in 2017 Q2.
  • The company saw a significant growth in revenue with a 5 year CAGR of 18.8%.
  • The TTM operating margin was good at 13.7% for Waste Connections.
  • Net margins stood at a healthy 7.1% (average) for Waste Connections in the Trailing Twelve Months.
  • The company has an operating cash flow which is 2.1 times the net income. We see this as a positive signal.
  • 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 35, which is worse than the industry average multiple of 22.6.
  • The company is trading at a price to sales multiple of 4.1, which is higher in comparison to the Waste Removal Services industry average of 1.6, making WCN stock expensive.
  • Waste Connections provides a low return on invested capital of 4.5%.
  • Waste Connections has a low return on equity of 5.5% over the last twelve months.

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