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Here's Why You Should Retain Waste Connections (WCN) Now
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Waste Connections, Inc. (WCN - Free Report) is benefiting from a low-overhead, highly-efficient operational structure and investor-friendly steps.
Factors That Augur Well
Waste Connections is consistent in rewarding its shareholders. In 2021, WCN paid out $220.2 million of dividends and repurchased shares worth $339 million. In 2020, WCN paid out $199.9 million of dividends and repurchased shares worth $105.7 million. In 2019, WCN disbursed $175.1 million of dividends but did not buy back any shares. Such moves indicate a company’s commitment to creating value for its shareholders and underline its confidence in its business.
Waste Connections generally focuses on providing vertically integrated services from collection through disposal of solid waste in landfills that it owns or operates. In addition, the operations are managed on a decentralized basis to place decision-making authority close to the customer, enabling WCN to identify and address customers’ needs on a real-time basis in a cost-effective manner.
WCN’s low-overhead, highly-efficient operational structure allows it to expand into geographically contiguous markets and operate in relatively small communities that its competitors may not find attractive.
Some Risks
Waste Connections’ current ratio (a measure of liquidity) at the end of second-quarter 2022 was pegged at 0.94, lower than the current ratio of 1.38 reported at the end of the prior-year quarter. A decreasing current ratio is undesirable as it indicates that a company may have problems meeting its short-term debt obligations.
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Here's Why You Should Retain Waste Connections (WCN) Now
Waste Connections, Inc. (WCN - Free Report) is benefiting from a low-overhead, highly-efficient operational structure and investor-friendly steps.
Factors That Augur Well
Waste Connections is consistent in rewarding its shareholders. In 2021, WCN paid out $220.2 million of dividends and repurchased shares worth $339 million. In 2020, WCN paid out $199.9 million of dividends and repurchased shares worth $105.7 million. In 2019, WCN disbursed $175.1 million of dividends but did not buy back any shares. Such moves indicate a company’s commitment to creating value for its shareholders and underline its confidence in its business.
Waste Connections generally focuses on providing vertically integrated services from collection through disposal of solid waste in landfills that it owns or operates. In addition, the operations are managed on a decentralized basis to place decision-making authority close to the customer, enabling WCN to identify and address customers’ needs on a real-time basis in a cost-effective manner.
WCN’s low-overhead, highly-efficient operational structure allows it to expand into geographically contiguous markets and operate in relatively small communities that its competitors may not find attractive.
Some Risks
Waste Connections’ current ratio (a measure of liquidity) at the end of second-quarter 2022 was pegged at 0.94, lower than the current ratio of 1.38 reported at the end of the prior-year quarter. A decreasing current ratio is undesirable as it indicates that a company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
Waste Connections currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) , Paychex, Inc. (PAYX - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 7.5%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.3%, on average.
Paychex carries a Zacks Rank of 2 at present. PAYX has a long-term earnings growth expectation of 7.5%.
Paychex delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 10%.
CCRN delivered a trailing four-quarter earnings surprise of 26%, on average.