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
BUY
Strong history of tuck-in acquisitions and made a large US acquisition last year that has catapulted them to be a major player in the waste management business. Would like to see them continue to integrate that acquisition and supplement it with some tuck-ins.
TOP PICK
(A Top Pick Apr 15/05. Up 9.2%.) A full service waste management company. A recession resistant industry. Very strong organic growth in Canada and the US. Very conservative payout ratio (mid 80's). Not really cheap, but given the growth prospects and conservative payout ratio, a great buy.
BUY
In full service waste management. Yielding about 6%. A high quality company. Wouldn't buy for capital gains, but for a steady yield, it's a good holding.
BUY
Waste management is a great business, an ideal type of trust with long stable contracts, pricing power. Just made a major acquisition in the US. Double their revenue base. Hedged their currency exposure so they don't gert hit on currency. Very well managed.
TOP PICK
Made a couple of big acquisitions which more than doubled the size of the business. Hauling trash is one of those things that is never going to go away. Higher fuel costs will be able to be passed on.
TOP PICK
A waste management company that operates in Canada and recently into the US. Good income trust model. Recession resistant. Strong market position. A fair degree of pricing power. Balance sheet is about 1.7 X debt to EBITDA which is low. A healthy payout ratio. Expects another distribution increase this year.
BUY
Relatively recession resistant. Made a lot of tuck-in acquisitions resulting in some increases in distributions. Late last year, made a major US acquisition making them a North American waste management business. Should be more upside.
TOP PICK
(Was a Top Pick Mar 18/05. Down 3%.) Dropped with the other income trusts. A core holding. A recession proof industry. Strong organic growth. In the top 3 in terms of market share. Made 2 good acquisitions in January.
BUY
A core holding for them. Just recently purchased a large waste company in the US and that expansion will continue their internal growth. With the 6/7% yield you will also get a 2/3% growth.
TOP PICK
Waste management is a pretty stable business. Good cash flow generator. Made a big acquisition in the US with a lot of paper in relation to the size of the income trust and the market is just trying to digest that unit issue and that has been keeping the price of the unit down.
TOP PICK
A recession proof industry. Growth is 4% in Canada and 7% in the US. Great marketing strategy. High internalization rate. Recently made some good acquisitions which will give them good leverage. Relatively conservative payout ratio.
BUY
A very experience management team that is not only good at handling non-hazardous waste, but are also good at making acquisitions.
TOP PICK
Garbage is a recession proof business. A very solid company. Company has maximized growth by doing tuck-in acquisitions and by looking for new platform acquisitions.
BUY
Just raised $400 million to acquire IESI and has come under pressure. Good price.
WAIT
A wonderful business. Has some organic growth. Price is dropping because of a large merger they are putting in place with IESI out of Texas and a purchase of Ridge Landfill in Ontario. Both of these moves are going to be very beneficial, however, they will have to sell a great deal of equity in the next month.
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