Waste Connections (WCN) has been benefiting from its successful acquisition strategy and policies that prioritize the interests of shareholders. The company has also focused on improving operational efficiency. However, it faces challenges related to low liquidity and seasonality.
WCN has a Growth Score of B, which is an impressive rating indicating the quality and sustainability of its growth based on key financial metrics.
Year-to-date, WCN shares have gained 7%, slightly trailing the 8.3% increase in the Waste Removal Services industry and the 17.1% increase in the S&P 500 composite index.
Waste Connections, Inc. Price
Waste Connections, Inc. price | Waste Connections, Inc. Quote
Factors That Augur Well
Waste Connections has a strategic approach to acquisitions, taking into account financial, market, and management criteria. By utilizing initial acquisitions as a foundation, the company has successfully expanded its presence, offered a wider range of services, increased its customer base, and strategically pursued additional acquisitions in new or adjacent markets. In the past three years, Waste Connections completed a total of 75 acquisitions, contributing significantly to its revenues.
WCN also demonstrates its commitment to shareholders by consistently paying dividends and engaging in share repurchases. This reinforces the company’s dedication to creating shareholder value and belief in its future prospects.
Waste Connections primarily focuses on providing comprehensive waste management services, from collection to landfill disposal. It adopts a decentralized operational approach, empowering local decision-making to better serve customers’ needs and efficiently expand into neighboring markets.
Some Worrying Features
Waste Connections’ current ratio, a measure of liquidity, has decreased from the previous year. This indicates potential difficulties in meeting short-term debt obligations
The company experiences significant seasonality in its revenue patterns, with the lowest revenues typically recorded in the first quarter.
WCN carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Business Service sector:
- Verisk Analytics (VRSK) – Zacks Rank #2 (Buy)
- Automatic Data Processing (ADP) – Zacks Rank #2 (Buy)
- Broadridge Financial Solutions (BR) – Zacks Rank #2 (Buy)
To read more about these stocks and get the latest recommendations from Zacks Investment Research, you can refer to the links provided in the article.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.
