Moody’s Gives Positive Outlook to Waste Connections, (WCN)

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Moody’s Investors Service has recently upgraded Waste Connections ($NYSE:WCN), Inc. (WCN), a leading provider of comprehensive waste management services in the United States and Canada. The company operates through its subsidiaries, providing a range of waste collection, transfer, disposal and recycling services. The recent upgrade from Moody’s signals that it expects WCN’s performance to remain strong in the near future. The outlook reflects the company’s strong balance sheet, which is supported by its high-quality asset base and high cash flow.

Additionally, Moody’s noted that WCN has a very solid and able management team and a strong track record of sound operations and strategic acquisitions. With the upgraded outlook, Moody’s expects WCN to continue to deliver strong financial growth over the coming years.

Market Price

On Monday, Moody’s Investors Service gave Waste Connections, Inc. (WCN) a positive outlook on their stock, despite the stock opening at $139.4 and closing at $138.1, down by 1.0% from last closing price of 139.5. This positive outlook from Moody’s comes after the company’s strong fourth-quarter earnings report, which beat expectations and showed growth in the company’s revenue and income, as well as an improvement in their margin structure. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Waste Connections. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Waste Connections. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Waste Connections. More…

Key Ratios Snapshot

Some of the financial key ratios for Waste Connections are shown below. More…

Analysis

At GoodWhale, we analyze the fundamentals of WASTE CONNECTIONS to provide investors with an in-depth overview of this company. According to our Star Chart, WASTE CONNECTIONS is strong in dividend, growth, and profitability, and weak in asset. It has a high health score of 8/10 considering its cashflows and debt, which means that the company is capable of sustaining its future operations even in times of crisis. Furthermore, based on our assessment, WASTE CONNECTIONS is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. These factors make WASTE CONNECTIONS an attractive opportunity for investors looking for long term returns. Its strong dividend, growth, and profitability metrics signify that the company has a solid foundation and a great chance of surviving in turbulent market conditions. Additionally, its classification as a ‘gorilla’ signals that it is an industry leader with the potential to generate substantial wealth in the future. Therefore, investors looking for steady and reliable investments should consider investing in WASTE CONNECTIONS. More…

Peers

The company’s operations include solid waste collection, transfer, disposal, and recycling. Waste Connections Inc has a network of operations in the United States, Canada, and Mexico. The company’s primary competitors are JPX Global Inc, Cleanaway Waste Management Ltd, and Wangneng Environment Co Ltd.

– JPX Global Inc ($OTCPK:JPEX)

JPX Global Inc is a leading provider of innovative technology solutions. The company has a market capitalization of $42.81 million and a return on equity of 9.79%. JPX Global offers a wide range of products and services that enable businesses to operate more efficiently and effectively. The company’s products and services include enterprise resource planning (ERP) software, customer relationship management (CRM) software, business intelligence (BI) software, and enterprise mobility solutions. JPX Global also provides a suite of cloud-based solutions that allow businesses to connect and collaborate with employees, customers, and partners.

– Cleanaway Waste Management Ltd ($ASX:CWY)

Cleanaway Waste Management Ltd is an Australian environmental services company. It is the largest provider of waste management and industrial services in Australia. The company has a market capitalization of $5.99 billion as of 2022 and a return on equity of 3.57%. Cleanaway Waste Management Ltd provides a range of services including waste collection, treatment and disposal, recycling, and resource recovery. The company has a strong focus on environmental sustainability and aims to reduce the environmental impact of waste.

– Wangneng Environment Co Ltd ($SZSE:002034)

Wangneng Environment Co Ltd is a Chinese company that focuses on environmental protection. The company has a market cap of 8.34 billion as of 2022 and a return on equity of 11.53%. The company operates in three main segments: environmental protection, water resources, and solid waste management. The company’s environmental protection segment provides environmental protection services such as air pollution control, water pollution control, and noise pollution control. The water resources segment engages in the development, utilization, and protection of water resources. The solid waste management segment provides services for the treatment and disposal of solid waste.

Summary

Moody’s Investors Service recently upgraded Waste Connections‘ (WCN) credit rating from Baa2 to Baa1, reflecting their improved financial profile and outlook. The upgrade is expected to benefit the company in terms of better access to capital markets and lower borrowing costs. This positive news comes at a time when the waste management and recycling company has seen strong revenue growth due to an increase in acquisitions and organic growth. Operating margin has also improved as the company strives to become more efficient and capitalize on economies of scale.

Management has also been reducing debt levels, which in turn helps to improve their credit rating. All of these factors have created a bullish case for WCN and make it a potentially attractive investment for those looking to benefit from a strong market leader.