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Waste Connections Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Waste Connections has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Waste Connections's Piotroski F-Score or its related term are showing as below:

NYSE:WCN' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 8

3
9

During the past 13 years, the highest Piotroski F-Score of Waste Connections was 9. The lowest was 3. And the median was 6.


Waste Connections Piotroski F-Score Historical Data

The historical data trend for Waste Connections's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Waste Connections Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 6.00 5.00 4.00 5.00

Waste Connections Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 5.00 5.00 8.00

Competitive Comparison

For the Waste Management subindustry, Waste Connections's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Waste Connections Piotroski F-Score Distribution

For the Waste Management industry and Industrials sector, Waste Connections's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Waste Connections's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Net Income was 158.049 + 130.665 + 160.309 + 177.047 = $626 Mil.
Cash Flow from Operations was 432.388 + 222.948 + 400.396 + 448.082 = $1,504 Mil.
Revenue was 1389.552 + 1398.251 + 1395.942 + 1533.931 = $5,718 Mil.
Gross Profit was 560.73 + 551.4 + 570.022 + 632.74 = $2,315 Mil.
Average Total Assets from the begining of this year (Jun20)
to the end of this year (Jun21) was
(13594.005 + 13849.447 + 13992.364 + 14042.929 + 14106.207) / 5 = $13916.9904 Mil.
Total Assets at the begining of this year (Jun20) was $13,594 Mil.
Long-Term Debt & Capital Lease Obligation was $4,902 Mil.
Total Current Assets was $1,506 Mil.
Total Current Liabilities was $1,092 Mil.
Net Income was 159.109 + 133.262 + 143.035 + -227.072 = $208 Mil.

Revenue was 1412.444 + 1361.96 + 1352.404 + 1305.782 = $5,433 Mil.
Gross Profit was 577.346 + 547.81 + 536.98 + 520.072 = $2,182 Mil.
Average Total Assets from the begining of last year (Jun19)
to the end of last year (Jun20) was
(13145.772 + 13270.235 + 13737.695 + 14279.411 + 13594.005) / 5 = $13605.4236 Mil.
Total Assets at the begining of last year (Jun19) was $13,146 Mil.
Long-Term Debt & Capital Lease Obligation was $4,844 Mil.
Total Current Assets was $1,505 Mil.
Total Current Liabilities was $1,039 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Waste Connections's current Net Income (TTM) was 626. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Waste Connections's current Cash Flow from Operations (TTM) was 1,504. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun20)
=626.07/13594.005
=0.04605486

ROA (Last Year)=Net Income/Total Assets (Jun19)
=208.334/13145.772
=0.01584799

Waste Connections's return on assets of this year was 0.04605486. Waste Connections's return on assets of last year was 0.01584799. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Waste Connections's current Net Income (TTM) was 626. Waste Connections's current Cash Flow from Operations (TTM) was 1,504. ==> 1,504 > 626 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=4902.186/13916.9904
=0.35224469

Gearing (Last Year: Jun20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun19 to Jun20
=4844.499/13605.4236
=0.35607116

Waste Connections's gearing of this year was 0.35224469. Waste Connections's gearing of last year was 0.35607116. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun21)=Total Current Assets/Total Current Liabilities
=1506.443/1092.282
=1.3791704

Current Ratio (Last Year: Jun20)=Total Current Assets/Total Current Liabilities
=1504.926/1039.318
=1.44799378

Waste Connections's current ratio of this year was 1.3791704. Waste Connections's current ratio of last year was 1.44799378. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Waste Connections's number of shares in issue this year was 261.419. Waste Connections's number of shares in issue last year was 262.994. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2314.892/5717.676
=0.40486589

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2182.208/5432.59
=0.40168833

Waste Connections's gross margin of this year was 0.40486589. Waste Connections's gross margin of last year was 0.40168833. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun20)
=5717.676/13594.005
=0.42060276

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun19)
=5432.59/13145.772
=0.41325759

Waste Connections's asset turnover of this year was 0.42060276. Waste Connections's asset turnover of last year was 0.41325759. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Waste Connections has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Waste Connections  (NYSE:WCN) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Waste Connections Piotroski F-Score Related Terms

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Waste Connections Business Description

Waste Connections logo
Industry
Industrials » Waste Management NAICS : 221310 SIC : 4931
Traded in Other Exchanges
Address
610 Applewood Crescent, 2nd Floor, Vaughan, ON, CAN, L4K 0E3
Waste Connections is the third- largest integrated provider of traditional solid waste and recycling services in the North America, operating 91 active landfills (12 are E&P waste landfills), 132 transfer stations, and 68 recycling operations. The firm serves residential, commercial, industrial, and energy end markets. Waste Connections entered the Canadian market with its 2016 merger with Progressive Waste. In 2020, 13% of consolidated revenue was generated from the firm's Canadian segment.

Waste Connections Headlines

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