Last Updated: 12 Nov 2024
Executive Summary
Waste Connections Inc. (WCN) is a leading waste management company in North America. The company has a strong financial position with a market capitalization of $47.8 billion and an EBITDA of $2.6 billion. WCN's stock price has performed well in recent years, outperforming the broader market. The company's fundamentals are also strong, with a trailing P/E ratio of 51.06 and a forward P/E ratio of 24.51. Technically, WCN is in a bullish trend and is trading above its 50-day and 200-day moving averages. The short-term outlook for WCN is positive, with analysts expecting the company to continue to perform well. The long-term outlook is also positive, with the company expected to benefit from the growing demand for waste management services.
Company Overview
Waste Connections Inc. is a waste management company that provides waste collection, transfer, disposal, and recycling services in the United States and Canada. The company has a network of over 300 collection facilities, 80 transfer stations, and 60 landfills. WCN also operates a fleet of over 10,000 trucks. The company's customers include residential, commercial, and industrial customers.
Fundamental Analysis
WCN's financial performance has been strong in recent years. The company's revenue has grown from $7.2 billion in 2018 to $8.7 billion in 2023. Net income has also increased from $1.2 billion in 2018 to $1.6 billion in 2023. The company's margins have also improved in recent years. Operating margin has increased from 19.5% in 2018 to 20.8% in 2023. Net margin has also increased from 16.7% in 2018 to 18.4% in 2023.
WCN's balance sheet is also strong. The company has a debt-to-equity ratio of 0.54, which is below the industry average. The company also has a strong cash position, with $1.2 billion in cash and equivalents on hand.
Technical Analysis
WCN's stock price has performed well in recent years. The stock price has increased from $129.45 in March 2023 to $185.36 on the date of this report. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is also above 50, which indicates that the stock is in a bullish trend.
Short Term Outlook
The short-term outlook for WCN is positive. The company is expected to continue to perform well in the coming quarters. The company's fundamentals are strong, and the stock is trading in a bullish trend. Analysts expect the stock price to continue to rise in the coming months.
Long Term Outlook
The long-term outlook for WCN is also positive. The company is expected to benefit from the growing demand for waste management services. The company's strong financial position and its commitment to innovation will allow it to continue to grow in the years to come. Analysts expect the stock price to continue to rise in the long term.
Analyst Recommendations
Analysts are bullish on WCN. The average analyst rating is "buy." The average analyst target price is $198.96, which represents a potential upside of 7.3% from the current price.
