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Waste Connections (NYSE:WCN) Operating Margin %

: 16.66% (As of Mar. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Waste Connections's Operating Income for the three months ended in Mar. 2023 was $317 Mil. Waste Connections's Revenue for the three months ended in Mar. 2023 was $1,901 Mil. Therefore, Waste Connections's Operating Margin % for the quarter that ended in Mar. 2023 was 16.66%.

Good Sign:

Waste Connections Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Waste Connections's Operating Margin % or its related term are showing as below:

WCN' s Operating Margin % Range Over the Past 10 Years
Min: 14.22   Med: 17.37   Max: 21.8
Current: 17.43


WCN's Operating Margin % is ranked better than
75.81% of 215 companies
in the Waste Management industry
Industry Median: 7.94 vs WCN: 17.43

Waste Connections's 5-Year Average Operating Margin % Growth Rate was 0.40% per year.

Waste Connections's Operating Income for the three months ended in Mar. 2023 was $317 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2023 was $1,301 Mil.


Waste Connections Operating Margin % Historical Data

The historical data trend for Waste Connections's Operating 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.

* Premium members only.

Waste Connections Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.31 16.70 16.14 17.43 17.48

Waste Connections Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Operating Margin % 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 16.75 18.37 18.10 16.62 16.66

Competitive Comparison

For the Waste Management subindustry, Waste Connections's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % Distribution

For the Waste Management industry and Industrials sector, Waste Connections's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Waste Connections's Operating Margin % falls in comparison to its industry or sector. The grey bar indicates the Operating Margin %'s extreme value range as defined by GuruFocus.



Waste Connections Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Waste Connections's Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=1260.42 / 7211.859
=17.48 %

Waste Connections's Operating Margin % for the quarter that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2023 ) / Revenue (Q: Mar. 2023 )
=316.554 / 1900.503
=16.66 %

* 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.


Waste Connections  (NYSE:WCN) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Waste Connections Operating Margin % Related Terms

Thank you for viewing the detailed overview of Waste Connections's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Waste Connections (NYSE:WCN) Business Description

Waste Connections logo
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 97 active landfills (12 are exploration and production waste landfills and 14 are nonmunicipal waste landfills), 142 transfer stations, and 71 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 2021, 14% of consolidated revenue was generated from the firm's Canadian segment.
Executives
Andrea E. Bertone director C/O CORP. SECRETARY, PEABODY ENERGY CORP, 701 MARKET STREET, ST. LOUIS MO 63101
Robert Michael Cloninger officer: SR VP, Deputy General Counsel 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
Jason Craft officer: Sr Vice President-Operations 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Elise Lipman Jordan director 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Eric Hansen officer: Senior Vice President and CIO 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Mary Anne Whitney officer: Sr Vice President - Finance 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Michael W Harlan director C/O WASTE CONNECTIONS, INC., 610 APPLEWOOD CRESCENT, SUITE 200, VAUGHAN A6 L4K 0C3
Patrick James Shea officer: Sr. VP, General Counsel & Sec 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
Edward E Guillet director C/O WASTE CONNECTIONS, INC, 610 APPLEWOOD CRESCENT, SUITE 200, VAUGHAN A6 L4K 0C3
Worthing Jackman officer: EVP & CFO 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
James Little officer: Sr. Vice President Engineering 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380

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