Waste Connections, Inc. (WCN) Stock Analysis

Analysis from 10-Q filed 2025-10-22. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 6.9%. FCF margin 12.0%. D/E -64.1x. Source: 10-Q filed 2025-10-22.

Metric	Value	Context
ROIC	6.9%	Below expectations
FCF Margin	12.0%	Healthy cash flow
Debt/Equity	-64.1x	Conservative leverage

ROIC 6.9% — Top 50% of sector peers. FCF margin 12.0% — Top 25%.

Explore Waste Connections, Inc.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for WCN: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Waste Connections, Inc. earns 6.9% ROIC, Top 50% in Utilities

ROIC TTM 6.9%, sector median 5.4%, Top 50%. DuPont: NOPAT margin 13.3% × asset turnover 0.5x. Gross margin 42.5%. Operating margin 17.5%. Source: 10-Q filed 2025-10-22.

Metric	WCN	Rating	Context
Return on Invested Capital (ROIC)	6.9%	Warning	Above sector median of 5.4%
Return on Equity (ROE)	14.7%	Adequate	Moderate equity returns
Gross Margin	42.5%	Good	Strong pricing power
Operating Margin	17.5%	Good	Efficient operations

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Cash Flow: Waste Connections, Inc. generates $1.2B FCF at 12.0% margin, positive NaN/8 quarters

FCF TTM $1.2B. FCF margin 12.0%, Top 25%. OCF/Net income 2.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-22.

Metric	WCN	Rating	Context
Free Cash Flow Margin	12.0%	Good	Healthy cash generation
Free Cash Flow (TTM)	$1.2B	Good	Positive cash generation
OCF/Net Income	2.3x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Waste Connections, Inc. at -64.1x leverage

Debt/Equity -64.1x. Total debt $9.1B, cash & investments $322.6M. Source: 10-Q filed 2025-10-22.

Metric	WCN	Rating	Context
Debt to Equity	-64.1x	Excellent	Conservative capital structure
Net Cash Position	$-8.8B	Warning	Net debt position

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Valuation: Waste Connections, Inc. trades at 39.6x earnings

P/E 39.6x. EV/Sales 5.2x. FCF yield 2.8%. Dividend yield 0.8%. Source: 10-Q filed 2025-10-22.

Metric	WCN	Rating	Context
P/E Ratio	39.6x	Adequate	Premium valuation
EV/Sales	5.2x	Adequate	Growth premium priced in
FCF Yield	2.8%	Adequate	Lower cash yield
Dividend Yield	0.8%	Adequate	Growth focus over income

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Capital Allocation: Waste Connections, Inc. returns 2.7% shareholder yield

Total shareholder yield 2.7% (div 0.8% + buyback 1.9%). Capital returned $1.1B TTM. Source: 10-Q filed 2025-10-22.

Metric	WCN	Rating	Context
Total Shareholder Yield	2.7%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.9%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$1.1B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	6.9%	Top 50%	1.3x above
Free Cash Flow Margin	12.0%	Top 25%	-
Gross Margin	42.5%	Bottom 50%	0.7x below
Operating Margin	17.5%	Bottom 50%	0.8x below
Return on Equity (ROE)	14.7%	Top 25%	1.5x above
P/E Ratio	39.6x	N/A	-

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Financial Scorecard

Metric	WCN	Rating	Sector Context
Return on Invested Capital (ROIC)	6.9%	Warning	Top 50% of sector (median: 5.4%)
Free Cash Flow Margin	12.0%	Good	Top 25% of sector (median: 0.0%)
Gross Margin	42.5%	Good	Bottom 50% of sector (median: 57.0%)
Debt to Equity Ratio	-64.1x	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	39.6x	Adequate	High expectations priced in
Free Cash Flow Yield	2.8%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is Waste Connections, Inc.'s Return on Invested Capital (ROIC)?

Waste Connections, Inc. (WCN) has a trailing twelve-month Return on Invested Capital (ROIC) of 6.9%. Sector median 5.4%. Source: 10-Q filed 2025-10-22.

Q: What is Waste Connections, Inc.'s Free Cash Flow Margin?

Waste Connections, Inc. (WCN) has a free cash flow margin of 12.0%, generating $1.2 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-22.

Q: What is Waste Connections, Inc.'s P/E ratio and how does it compare to peers?

Waste Connections, Inc. (WCN) trades at a P/E ratio of 39.6x, which is above the sector median of N/A. EV/Sales 5.2x. FCF yield 2.8%. Source: 10-Q filed 2025-10-22.

Q: Does Waste Connections, Inc. pay a dividend?

Waste Connections, Inc. (WCN) currently pays a dividend yield of 0.8%. Total shareholder yield (dividend + buybacks) 2.7%. Source: 10-Q filed 2025-10-22.

Q: What is Waste Connections, Inc.'s revenue and earnings growth?

Waste Connections, Inc. (WCN) grew revenue by 5.9% year-over-year. EPS +68.7% YoY. Source: 10-Q filed 2025-10-22.

Q: Is Waste Connections, Inc. buying back stock?

Waste Connections, Inc. (WCN) repurchased $789.5 million of stock over the trailing twelve months. This represents a buyback yield of 1.9%. Source: 10-Q filed 2025-10-22.

Q: How does Waste Connections, Inc. compare to competitors in Utilities?

Compared to other companies in Utilities, Waste Connections, Inc. (WCN) shows: ROIC 6.9%, sector median 5.4% (Top 50%). FCF margin 12.0%, sector median 0.0% (Top 25%). Gross margin 42.5%, 14.5pp below sector median. These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.

Q: What warning signs should I watch for with Waste Connections, Inc.?

No quantitative warning flags fired for Waste Connections, Inc. (WCN) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-22.

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Data Source: Data sourced from 10-Q filed 2025-10-22. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.