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Waste Connections (WCN) has priced and completed a $600 million senior unsecured notes offering at 4.800% due 2036, with proceeds earmarked to reduce borrowings on its revolving credit facility.
For you as a shareholder, this move sits squarely in the corporate finance bucket. It affects how the company funds its operations and growth, rather than changing the underlying waste and recycling business itself.
See our latest analysis for Waste Connections.
Despite the new notes and recent insider selling, the 1 year total shareholder return is down 9.0%, while the 3 year and 5 year total shareholder returns of 32.7% and 71.2% point to longer term momentum. The share price was recently at US$170.14.
If this kind of balance sheet reshaping has you thinking about where else capital might flow, it could be worth scanning 23 power grid technology and infrastructure stocks as a starting list of related infrastructure ideas.
With the stock down 9.0% on a 1 year view, but ahead 32.7% and 71.2% over 3 and 5 years, and trading at US$170.14 versus analyst targets around US$197 to US$198.75, are you seeing a genuine opening or a market already pricing in future growth?
With Waste Connections closing at $170.14 against a widely followed fair value of $198.75, the current price sits below what that narrative assumes.
Robust acquisition activity, with annualized revenues closed already over $125 million, and a strong balance sheet position Waste Connections well for continued growth and successful integration of acquisitions, supporting future revenue and earnings growth.
Read the complete narrative. Read the complete narrative.
Want to see what is baked into that gap between fair value and today’s price? The core of this story is steady revenue expansion, rising margins and a future earnings profile that assumes the company keeps compounding at a measured pace. Curious how those moving parts translate into one number for fair value?
Result: Fair Value of $198.75 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, there is still real execution risk if acquisition-heavy growth compresses margins, or if higher Chiquita landfill outlays weigh more than analysts currently model.
Find out about the key risks to this Waste Connections narrative.
So far, the fair value work points to Waste Connections trading at a discount, but the simple P/E check tells a different story. At about 40.4x earnings, the stock sits above both the Commercial Services industry at 24.6x and peers at 37x, and even above a fair ratio of 27.7x. In plain terms, you are paying a richer price for each dollar of earnings, which can limit room for error if the narrative does not play out as expected. Do you see that premium as justified by quality and consistency, or as valuation risk you are not fully comfortable with?
