Image source: © Jirsak | Megapixl.com

Highlights

  • In Q1FY24, WCN’s total revenue marked a YoY growth of 9.1%
  • The company’s net income for Q1 2024 was USD 229.1 million, 15.8% higher than pcp
  • Last month, the company paid a regular quarterly cash dividend of USD 0.285 per common share

Waste Connections Inc. (TSX: WCN) stands as the third-largest integrated provider of conventional solid waste and recycling solutions across North America. The company has a market cap of CAD 57.75 billion.

In the first quarter of 2024, WCN’s total revenue stood at USD 2,072.6 million, marking a YoY growth of 9.1%. The surge in revenue was majorly driven by acquisitions made by the group along with higher E&P waste revenues and revenues from the divestment of recyclable commodities. Backed by higher revenue and lower impairment costs, the company’s operating income surged by 16.6% in the same reporting period. Overall, the company’s net income for Q1 2024 was USD 229.1 million, 15.8% higher than pcp. However, it was partially offset by higher taxes.

Further, the company achieved a higher operating margin of 17.7% and a higher net margin of 11.1% in Q1 2024, surpassing the industry median of 8.1% and 3.2%, respectively.

Recent business update

Last month, WCN distributed a regular quarterly cash dividend of USD 0.285 per common share. It was paid to shareholders of record at the close of business on May 8, 2024.

Company outlook

In fiscal year 2024, Waste Connections expects to generate around USD 8.75 billion in revenue, marking an increase of USD 728 million YoY, equivalent to 9.1%. Meanwhile, the company's adjusted EBITDA is expected to reach approximately USD 2.86 billion, rising by USD 337 million YoY, representing a growth of 13.4%.

Top 10 shareholders

The top 10 shareholders of WCN collectively form around 35.24% of the total shareholdings in the company. The Vanguard Group, Inc. holds the highest number of shares with ~11.00% shareholding, followed by T. Rowe Price Investment Management, Inc. with ~4.84%, shareholding, as depicted in the chart below:

Stock performance

The stock price of WCN has witnessed a decline of around 1.03% over the last one week. However, it has surged by around 0.35% over the past one month.  The stock has a 52-week high and 52-week low of CAD 234.79 and CAD 174.74, respectively. It is currently trading higher than the average of its 52-week high low.

 

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 31, 2024. The reference data in this report has been partly sourced from EODHD/Others.