TSE:WCN

Waste Connections (WCN.TO)

216.40
+2.33 (1.09%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
282 watching
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Investor Insights
star iconJun 5, 2026, 12:00 am

This summary was created by AI, based on 14 opinions in the last 12 months.

Waste Connections (WCN) is regarded as a fundamentally solid company within the waste management sector, characterized by steady earnings and growth potential. Despite its strong operational track record and disciplined management, the stock is seen as expensive, trading at a forward PE of 27x, which has made some investors cautious. Analysts agree that while WCN has avenues for growth through acquisitions and a solid market position, the current market sentiments lean towards finding more exciting investment opportunities. The potential for double-digit earnings growth and the company’s commitment to employee safety and solid cash flows provides a robust long-term investment case, yet, the stock has been facing downward pressure partly due to challenges like environmental concerns and rising fuel costs. Overall, while potentially offering good long-term returns through stability, there's a consensus that it may be best to seek a pullback before entering a position.

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Consensus
Hold
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Valuation
Overvalued
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WM
TOP PICK
Waste management. The ideal model for a business trust. Has a lot of landfills. 6% yield.
TOP PICK
One of the better quality business trusts. 5th largest waste management company in North America. Made a number of tuck-in acquisitions but have also acquired some landfill companies. Should continue to see growth. Pullback gives a good buying opportunity.
BUY
Had a lot of growth. Now that growth has been captured, you should probably only expect to clip your distribution of about 6.5/7% a year. On top of that, you can hope for 2/3% growth per year. Could possibly move closer to $27/28 but may take a year. Integrating a large US acquisition.
TOP PICK
Waste management company. One third of their business is Canadian and the rest is US. Have their own landfills. Strong revenue and cash flow. Yield of 6.5%.
TOP PICK
A very stable business. Declined along with other business trusts. Very strong organic growth in both Canada and US. Have landfill in Ontario that could be called on for Toronto garbage, which could be an upside. Solid management. Payout ratio 85/80%.
HOLD
One of the more solid and well-suited businesses for an income trust. Have a tremendous cost advantage with their landfill site. Growth pattern is probably in the low single digit category. Not as many acquisition prospects for them going forward. Too expensive.
TOP PICK
Waste management. This is a conservative pick. Recession proof. Has a great payout ratio. You'll get a yield of about 6.5% but you can also expect 3/4% growth each year.
TOP PICK
Typically trades at a premium to many of its peers because of its nice combination of a stable core business plus its ability to grow organically. Recession proof. Will be up to pass price increases on. 1st quarter results were better than expected.
TRADE
Went into a merger with a US waste management company which substantially increased their size as well as increasing their exposure to the US$. This put pressure on their payout ratios. Also affected by the higher interest rate which is now behind us.
TOP PICK
(A Top Pick Feb 17/06. Down 2.5%.) Provide non-hazardous waste services. Fundamentally, the story is still on track. There is a bit of US$ exposure here but they have good hedging in place.
BUY ON WEAKNESS
A waste management trust. Market is a little concerned about the rising costs they are facing. Long-term, have an excellent franchise. Sensitive to interest rates.
BUY
Likes.
WEAK BUY
BFI is a high income trust. They have had decent pay out ratio and pretty good margins. Still buying it in his open ended mutual funds as part of the portfolio.
TOP PICK
North America’s largest, non-hazardous waste collection and disposal business. The underlying base business is very suitable as an income trust. Fairly high margins. Made good acquisitions.
BUY ON WEAKNESS
Garbage collection and landfill operation in Canada and the US. Prudent management team. Grows by acquisition. Recession proof. Not cheap right now.
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