How Does This Waste Network Operate?
Waste Connections provides solid waste collection, transfer, disposal, and recycling services. The business is built around handling routine waste streams for commercial and residential customers through a network of collection routes and owned facilities. Operations span multiple local markets, with service delivered through day-to-day pickup and long-lived infrastructure. The company’s scale is reflected in a market capitalization of about USD 55.5 billion.
Are Margins and Cash Flow Holding Steady?
FundamentalsFor 2025 (reported in USD), revenue reached about USD 9.5 billion, with EBIT of roughly USD 1.7 billion and net income of about USD 1.1 billion. The year included 6.1% revenue growth, alongside a TTM gross margin of 42.50% and an operating margin of 17.53%, placing net profit margin at 10.97%.
Cash conversion, using the provided proxy that adjusts EBIT for taxes, depreciation, and capital spending, came in around USD 1.2 billion. Depreciation and amortization was about USD 1.0 billion, while capital spending ran higher at roughly USD 1.2 billion, and total debt was reported at USD 8.7 million.
Is the Market Paying Too Much Now?
DCF / MultiplesAt USD 158.92, the shares trade above the central DCF estimate of USD 112.70, sitting between a weaker outcome of USD 64.11 and a stronger outcome of USD 180.25. Headline pricing is also consistent with higher multiples, including 37.76x earnings and 16.42x EV/EBITDA on a TTM basis.
Solid Business, Stretched Price
TakeawayOperations are producing solid margins and steady cash generation. The balance sheet looks unusually light on reported debt. The current price asks for continued clean execution. If cash generation softens, the valuation support can thin quickly.