Last Updated: 18 Sep 2024
Executive Summary
Waste Connections Inc. (WCN) is a leading provider of waste collection, transfer, disposal, and recycling services in North America. The company has a strong financial position and a track record of consistent growth. WCN's stock is currently trading at $181.41, which is below its 52-week high of $187.54. However, the stock is still above its 50-day moving average of $181.75 and its 200-day moving average of $166.65. Analysts are generally positive on WCN, with a consensus rating of "Buy." The average analyst target price is $197.42, which represents a potential upside of 8.9%.
Company Overview
Waste Connections Inc. was founded in 1997 and is headquartered in Vaughan, Canada. The company provides waste collection, transfer, disposal, and recycling services to residential, commercial, and industrial customers in the United States and Canada. WCN operates a network of over 300 landfills, transfer stations, and recycling facilities. The company also provides a variety of environmental services, such as hazardous waste disposal and remediation.
Fundamental Analysis
WCN's financial performance has been strong in recent years. The company's revenue has grown from $5.6 billion in 2016 to $8.4 billion in 2022. Net income has also grown significantly, from $500 million in 2016 to $1.1 billion in 2022. WCN's profit margin has remained relatively stable at around 10%. The company's balance sheet is also strong, with $2.5 billion in cash and equivalents and $4.2 billion in debt. WCN's debt-to-equity ratio is 0.6, which is below the industry average.
Technical Analysis
WCN's stock price has been trending higher in recent months. The stock broke out of a trading range in early 2023 and has since made a series of higher highs and higher lows. The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish sign. The relative strength index (RSI) is also above 50, which indicates that the stock is not overbought.
Short Term Outlook
WCN's stock is likely to continue to trend higher in the short term. The stock is trading above its key moving averages and the RSI is above 50. The company's financial performance is also strong, which is another positive sign. However, investors should be aware that the stock market is volatile and there is always the potential for a pullback.
Long Term Outlook
WCN's long-term outlook is positive. The company is a leader in the waste management industry and has a strong track record of growth. The company's financial position is also strong, which gives it the flexibility to invest in new growth opportunities. WCN is also well-positioned to benefit from the increasing demand for waste management services.
Analyst Recommendations
Analysts are generally positive on WCN, with a consensus rating of "Buy." The average analyst target price is $197.42, which represents a potential upside of 8.9%. Some analysts believe that WCN is a good value at current levels, while others believe that the stock is fairly valued. However, all analysts agree that WCN is a well-run company with a strong track record of growth.
