Stock of the Day

October 16, 2019

Waste Connections (WCN)

$187.41
-$0.44 (-0.2%)
Market Cap: $48.48B

About Waste Connections

Waste Connections, Inc. provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. It offers collection services to residential, commercial, municipal, industrial, and exploration and production (E&P) customers; landfill disposal services; and recycling services for various recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles, and ferrous and aluminum metals. The company owns and operates transfer stations that receive compact and/or load waste to be transported to landfills or treatment facilities through truck, rail, or barge; and intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. In addition, it provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flowback water; production wastes and produced water during a well's operating life; contaminated soils that require treatment during site reclamation; and substances, which require clean-up after a spill, reserve pit clean-up, or pipeline rupture. Further, the company offers leasing services to its customers. Waste Connections, Inc. was founded in 1997 and is based in Woodbridge, Canada.

Waste Connections Bull Case

Here are some ways that investors could benefit from investing in Waste Connections, Inc.:

  • Recent earnings projections indicate that Waste Connections, Inc. is expected to post earnings per share of 5.3 for the current fiscal year, suggesting strong profitability potential.
  • The company has a solid return on equity of 15.54%, indicating effective management and a strong ability to generate profits from shareholders' equity.
  • Waste Connections, Inc. has a consistent dividend payout, with a quarterly dividend of $0.315 per share, translating to an annualized yield of 0.67%, which can provide a steady income stream for investors.
  • Analysts have a consensus target price of $201.00 for Waste Connections, Inc., which is above the current stock price, indicating potential for price appreciation.
  • The stock has received multiple "buy" ratings from analysts, reflecting positive sentiment and confidence in the company's growth prospects.

Waste Connections Bear Case

Investors should be bearish about investing in Waste Connections, Inc. for these reasons:

  • The company reported earnings of $1.16 per share for the last quarter, which was below analysts' expectations of $1.20, raising concerns about its short-term performance.
  • Waste Connections, Inc. has a net margin of 6.92%, which, while positive, may indicate limited profitability compared to competitors in the industry.
  • Several analysts have recently adjusted their price targets downward, which could signal a lack of confidence in the stock's near-term performance.
  • The stock's payout ratio is currently at 52.72%, suggesting that a significant portion of earnings is being distributed as dividends, which may limit reinvestment in growth opportunities.
  • Market volatility and economic uncertainties could impact the waste management sector, potentially affecting Waste Connections, Inc.'s performance and stock price.

Recent News