Waste Connections, Inc. (WCN.TO) stock analysis

In our weekly check, Waste Connections, Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2.

About Waste Connections, Inc.

Waste Connections, Inc. is an Industrials company (Waste Management) based in Canada, listed on TSX as WCN.TO.

What our checks show for WCN.TO

Red flags

• The stock has fallen as much as 74% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.8 years.

Warning signs

• Net debt is 3.5x a year of EBITDA (debt/equity 1.24). That limits room in a downturn and raises refinancing risk.
• Thinly traded (about 388 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 9.2%.

Strengths

• Operating profit covers interest 47.2 times over.
• The net margin rose by 3 points over 5 years, to 13.1%.
• The gross margin is 45.4% and has risen by 4.8 points: pricing power is holding.
• Operating cash flow is 2.22x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 20.3% a year over the next years.
• Analysts expect the net margin to improve by 2.7 points from today's 13.1%.

Similar companies

RSG · WM · CLH · GFL · CWST

Questions

What grade does Waste Connections, Inc. (WCN.TO) have?

In our weekly check, Waste Connections, Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of WCN.TO stock?

This week's biggest flags for Waste Connections, Inc.: Deep past fall, Slow recovery after falls, High debt. In total 5 of 25 checks show a warning or a red flag.

What does Waste Connections, Inc. do?

Waste Connections, Inc. is an Industrials company (Waste Management) based in Canada, listed on TSX as WCN.TO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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