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Waste Connections Beneish M-Score

: -2.70 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:WCN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.87   Med: -2.67   Max: -1.64
Current: -2.7

-2.87
-1.64

During the past 13 years, the highest Beneish M-Score of Waste Connections was -1.64. The lowest was -2.87. And the median was -2.67.


Waste Connections Beneish M-Score Historical Data

The historical data trend for Waste Connections's Beneish M-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
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.82 -2.47 -2.71 -2.69 -2.77

Waste Connections Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Beneish M-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 -2.86 -2.87 -2.77 -2.71 -2.70

Competitive Comparison

For the Waste Management subindustry, Waste Connections's Beneish M-Score, along with its competitors' market caps and Beneish M-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 Beneish M-Score Distribution

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

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



Waste Connections Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Waste Connections for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0138+0.528 * 0.9922+0.404 * 1.0073+0.892 * 1.0525+0.115 * 0.9931
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9967+4.679 * -0.0601-0.327 * 0.9818
=-2.70

* 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:
Accounts Receivable was $650 Mil.
Revenue was 1533.931 + 1395.942 + 1398.251 + 1389.552 = $5,718 Mil.
Gross Profit was 632.74 + 570.022 + 551.4 + 560.73 = $2,315 Mil.
Total Current Assets was $1,506 Mil.
Total Assets was $14,106 Mil.
Property, Plant and Equipment(Net PPE) was $5,419 Mil.
Depreciation, Depletion and Amortization(DDA) was $778 Mil.
Selling, General, & Admin. Expense(SGA) was $569 Mil.
Total Current Liabilities was $1,092 Mil.
Long-Term Debt & Capital Lease Obligation was $4,902 Mil.
Net Income was 177.047 + 160.309 + 130.665 + 158.049 = $626 Mil.
Non Operating Income was -7.316 + 2.914 + -22.482 + -3.103 = $-30 Mil.
Cash Flow from Operations was 448.082 + 400.396 + 222.948 + 432.388 = $1,504 Mil.
Accounts Receivable was $609 Mil.
Revenue was 1305.782 + 1352.404 + 1361.96 + 1412.444 = $5,433 Mil.
Gross Profit was 520.072 + 536.98 + 547.81 + 577.346 = $2,182 Mil.
Total Current Assets was $1,505 Mil.
Total Assets was $13,594 Mil.
Property, Plant and Equipment(Net PPE) was $5,220 Mil.
Depreciation, Depletion and Amortization(DDA) was $744 Mil.
Selling, General, & Admin. Expense(SGA) was $542 Mil.
Total Current Liabilities was $1,039 Mil.
Long-Term Debt & Capital Lease Obligation was $4,844 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(649.561 / 5717.676) / (608.801 / 5432.59)
=0.11360577 / 0.1120646
=1.0138

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2182.208 / 5432.59) / (2314.892 / 5717.676)
=0.40168833 / 0.40486589
=0.9922

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1506.443 + 5419.427) / 14106.207) / (1 - (1504.926 + 5219.777) / 13594.005)
=0.50901968 / 0.50531848
=1.0073

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=5717.676 / 5432.59
=1.0525

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(743.869 / (743.869 + 5219.777)) / (778.467 / (778.467 + 5419.427))
=0.12473393 / 0.12560186
=0.9931

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(568.787 / 5717.676) / (542.239 / 5432.59)
=0.0994787 / 0.09981224
=0.9967

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4902.186 + 1092.282) / 14106.207) / ((4844.499 + 1039.318) / 13594.005)
=0.4249525 / 0.4328244
=0.9818

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(626.07 - -29.987 - 1503.814) / 14106.207
=-0.0601

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Waste Connections has a M-score of -2.70 suggests that the company is unlikely to be a manipulator.


Waste Connections Beneish M-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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