Skip to Content

Waste Connections Inc WCN

Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Waste Connections Is Managing Inflation Headwinds Well; Demand and Pricing Remain Strong

Analyst Note

| Brian Bernard, CFA, CPA |

Wide-moat-rated Waste Connections, a leader in North American waste collection and disposal, reported strong third-quarter results that featured 15% reported revenue growth (11% organic growth), 60 basis points of adjusted EBITDA margin expansion (to 31.7%), and 24% adjusted EPS growth (to $0.89). Revenue growth was driven by solid waste volume gains (2.2%) amid strengthening end markets, increased pricing (core price was up 4.7%), a strong contribution from recycling operations (2.1%) and acquisitions. While Waste Connections isn't immune to the labor shortages and inflationary headwinds that have plagued the industrials space, in our view, management has done a fine job managing these challenges, and the firm's pricing power (a feature of its wide economic moat) has been on full display. Indeed, Waste Connections' third-quarter adjusted EBITDA margin was better than we expected (about 60 basis points better) primarily due to stronger-than-expected pricing and better selling, general, and administrative expense discipline than we had anticipated.

Read Full Analysis

Company Profile

Business Description

Waste Connections is the third- largest integrated provider of traditional solid waste and recycling services in the North America, operating 91 active landfills (12 are E&P waste landfills), 132 transfer stations, and 68 recycling operations. The firm serves residential, commercial, industrial, and energy end markets. Waste Connections entered the Canadian market with its 2016 merger with Progressive Waste. In 2020, 13% of consolidated revenue was generated from the firm's Canadian segment.

610 Applewood Crescent, 2nd Floor
Vaughan, ON, L4K 0E3, Canada
T +1 905 532-7510
Sector Industrials
Industry Waste Management
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 18,933