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Waste Connections (Waste Connections) Piotroski F-Score : 4 (As of Jul. 24, 2024)


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What is Waste Connections Piotroski F-Score?

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 4 indicating the company's financial situation is typical for a stable company.

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

WCN' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 4

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 Piotroski F-Score Chart

Waste Connections Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 5.00 7.00 6.00 5.00

Waste Connections Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Get a 7-Day Free Trial 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 6.00 5.00 5.00 5.00 4.00

Competitive Comparison of Waste Connections's Piotroski F-Score

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's Piotroski F-Score Distribution in the Waste Management Industry

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 (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 209.208 + 229.026 + 126.753 + 230.054 = $795 Mil.
Cash Flow from Operations was 574.354 + 554.164 + 555.941 + 490.309 = $2,175 Mil.
Revenue was 2021.095 + 2064.744 + 2035.609 + 2072.653 = $8,194 Mil.
Gross Profit was 823.746 + 860.141 + 839.989 + 850.87 = $3,375 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(17227.094 + 17359.527 + 17731.24 + 17915.876 + 19082.66) / 5 = $17863.2794 Mil.
Total Assets at the begining of this year (Mar23) was $17,227 Mil.
Long-Term Debt & Capital Lease Obligation was $8,045 Mil.
Total Current Assets was $1,217 Mil.
Total Current Liabilities was $1,632 Mil.
Net Income was 224.074 + 236.912 + 194.352 + 197.813 = $853 Mil.

Revenue was 1816.435 + 1879.868 + 1869.301 + 1900.503 = $7,466 Mil.
Gross Profit was 728.543 + 759.239 + 731.328 + 753.562 = $2,973 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(15414.362 + 15416.241 + 16130.668 + 17134.603 + 17227.094) / 5 = $16264.5936 Mil.
Total Assets at the begining of last year (Mar22) was $15,414 Mil.
Long-Term Debt & Capital Lease Obligation was $7,091 Mil.
Total Current Assets was $1,134 Mil.
Total Current Liabilities was $1,383 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 795. ==> 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 2,175. ==> 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 (Mar23)
=795.041/17227.094
=0.04615062

ROA (Last Year)=Net Income/Total Assets (Mar22)
=853.151/15414.362
=0.0553478

Waste Connections's return on assets of this year was 0.04615062. Waste Connections's return on assets of last year was 0.0553478. ==> Last year is higher ==> Score 0.

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 795. Waste Connections's current Cash Flow from Operations (TTM) was 2,175. ==> 2,175 > 795 ==> 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: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=8044.61/17863.2794
=0.4503434

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=7090.89/16264.5936
=0.43597093

Waste Connections's gearing of this year was 0.4503434. Waste Connections's gearing of last year was 0.43597093. ==> Last year is lower than this year ==> Score 0.

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: Mar24)=Total Current Assets/Total Current Liabilities
=1217.054/1631.541
=0.74595367

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=1134.258/1383.184
=0.82003407

Waste Connections's current ratio of this year was 0.74595367. Waste Connections's current ratio of last year was 0.82003407. ==> 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 258.482. Waste Connections's number of shares in issue last year was 257.989. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=3374.746/8194.101
=0.41185067

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2972.672/7466.107
=0.39815556

Waste Connections's gross margin of this year was 0.41185067. Waste Connections's gross margin of last year was 0.39815556. ==> 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 (Mar23)
=8194.101/17227.094
=0.47565196

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=7466.107/15414.362
=0.48436043

Waste Connections's asset turnover of this year was 0.47565196. Waste Connections's asset turnover of last year was 0.48436043. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

Waste Connections has an F-score of 4 indicating the company's financial situation is typical for a stable company.

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 (Waste Connections) Business Description

Traded in Other Exchanges
Address
6220 Highway 7, Suite 600, Woodbridge, Vaughan, ON, CAN, L4H 4G3
Waste Connections is the third-largest integrated provider of traditional solid waste and recycling services in the North America, operating 100 active landfills (9 are exploration and production waste landfills and 16 are nonmunicipal waste landfills), 157 transfer stations, and 79 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 2022, 13% of consolidated revenue was generated from the firm's Canadian segment.
Executives
Philip Rivard officer: SR VP Business Development 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Iii Robert Nielsen officer: SR VP Operations 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Robert Michael Cloninger officer: SR VP, Deputy General Counsel 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
William J Razzouk director C/O WASTE CONNECTIONS, INC, 610 APPLEWOOD CRESCENT, SUITE 200, VAUGHAN A6 L4K 0C3
James Little officer: Sr. Vice President Engineering 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Susan Netherton officer: VP People, Training & Devlpmnt 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Domenic Pio officer: SR VP Operations 1001 FANNIN ST, STE 4000, HOUSTON TX 77002
David Eddie officer: Sr. VP & Chief Accting Officer 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Andrea E. Bertone director C/O CORP. SECRETARY, PEABODY ENERGY CORP, 701 MARKET STREET, ST. LOUIS MO 63101
Eric Hansen officer: Senior Vice President and CIO 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Patrick James Shea officer: Sr. VP, General Counsel & Sec 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Jason Craft officer: Sr Vice President-Operations 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Darrell W Chambliss officer: EVP & COO 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
David M Hall officer: Sr. Vice President 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Matthew Stephen Black officer: Sr. Vice President - Tax 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380