Waste ConnectionsMEX:WCNN +6.82%87 Gross Margin % is 42.58% as of Mar. 2026, which is 3% above its 10-year median of 41.23. GuruFocus rates MEX:WCNN with a GF Score™ of 87/100 and a GF Value™ of MXN3,445.03 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 236 Waste Management companies, Waste Connections ranks better than 74.15% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Waste Connections had a gross margin of 42.58% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Waste Connections Gross Margin % Related Terms
Waste Connections Gross Margin % Historical Data
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The historical data trend for Waste Connections's Gross Margin % 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.
MEX:WCNN vs CLH, RSG, GFL: Gross Margin % Comparison
For the Waste Management subindustry, Waste Connections's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Waste Connections's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Waste Connections's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Waste Connections (MEX:WCNN) has a Gross Margin % of 42.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Waste Connections and its competitors. This is near median its historical median of 41.23. Over the past decade, Waste Connections' Gross Margin % has ranged from 39.83 to 42.50. According to the industry distribution chart, Waste Connections ranks #61 out of 236 companies in the Waste Management industry, placing it in the top 25.8%.
Is Waste Connections' Gross Margin % too high?
Waste Connections' current Gross Margin % of 42.58% is near median its 10-year median of 41.23. Over the past 10 years, this metric has ranged from a low of 39.83 to a high of 42.50. The Waste Management industry median Gross Margin % is 27.35. Waste Connections' value of 42.58% is 55.7% above this industry median. Based on the distribution chart, Waste Connections ranks #61 out of 236 companies in the Waste Management industry, which is above the industry midpoint. Overall, Waste Connections has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Waste Connections' Gross Margin % compare to CLH and RSG?
According to the Waste Management industry distribution chart, Waste Connections ranks #61 out of 236 companies for Gross Margin %. This puts Waste Connections in the upper half of its industry. The industry median Gross Margin % is 27.35. Waste Connections' value of 42.58% is 55.7% above this benchmark. Historically, Waste Connections' own Gross Margin % has ranged from 39.83 to 42.50 over the past decade. While the company's 10-year median is 41.23 vs. the industry median of 27.35, Waste Connections has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Waste Management company?
The median Gross Margin % among Waste Management companies is 27.35, based on 236 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Waste Connections's current Gross Margin % of 42.58% is 55.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Waste Connections and its competitors. For the Waste Management industry, the median Gross Margin % is 27.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waste Connections's current Gross Margin % is 42.58%, which is near median its own 10-year median of 41.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waste Connections stock overvalued right now?
Based on GuruFocus' analysis, Waste Connections (MEX:WCNN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN3,445.03, compared to a current price of MXN2,800.00 — trading 18.7% below its estimated fair value. The current Gross Margin % is 42.58%, which is near median its 10-year median of 41.23 and 55.7% above the Waste Management industry median of 27.35. Waste Connections' overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Waste Connections (MEX:WCNN), the current Gross Margin % is 42.58% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Waste Connections (MEX:WCNN) Overvalued in 2026?
Based on GuruFocus' analysis, Waste Connections stock appears to be undervalued.
The current stock price of MXN2,800.00 is trading 18.7% below its estimated GF Value™ of MXN3,445.03.
GuruFocus considers Waste Connections to be Modestly Undervalued.
Key valuation signals for MEX:WCNN:
Gross Margin %: 42.58% (near median its 10-year median of 41.23)
GF Value™: MXN3,445.03 vs. price of MXN2,800.00 (18.7% below fair value)
Industry Position: 55.7% above the Waste Management median (#61 of 236)
No single metric tells the full story. See the MEX:WCNN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Waste Connections is a North American waste management company focused on integrated waste collection services. The firm primarily focuses on residential, commercial, municipal, and industrial waste collection, with a secondary market focus on rural areas. With 113 landfills and 222 transfer stations as of 2024, it is the third-largest waste management company by revenue. Revenue is split among six operating segments: Western, Southern, Eastern, Central, Canada, and Midsouth.
87GF Score
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