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Waste Connections (Waste Connections) Owner Earnings per Share (TTM) : 4.68 (As of Mar. 2024)


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What is Waste Connections Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Waste Connections's Owner Earnings per Share (TTM) ended in Mar. 2024 was $4.68. It's Price-to-Owner-Earnings ratio for today is 37.31.


The historical rank and industry rank for Waste Connections's Owner Earnings per Share (TTM) or its related term are showing as below:

WCN' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 13.96   Med: 25.69   Max: 68.37
Current: 37.34


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Waste Connections was 68.37. The lowest was 13.96. And the median was 25.69.


WCN's Price-to-Owner-Earnings is ranked worse than
68.54% of 89 companies
in the Waste Management industry
Industry Median: 17.36 vs WCN: 37.34

Waste Connections's Earnings per Share (Diluted) for the three months ended in Mar. 2024 was $0.89. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $3.08. It's PE Ratio ratio for today is 56.69.

Waste Connections's EPS without NRI for the three months ended in Mar. 2024 was $0.89. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was $4.19. It's PE Ratio without NRI ratio for today is 41.67.


Waste Connections Owner Earnings per Share (TTM) Historical Data

The historical data trend for Waste Connections's Owner Earnings per Share (TTM) 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 Owner Earnings per Share (TTM) Chart

Waste Connections Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.01 1.69 3.85 5.38 4.58

Waste Connections Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Owner Earnings per Share (TTM) 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 5.34 5.34 5.19 4.58 4.68

Competitive Comparison of Waste Connections's Owner Earnings per Share (TTM)

For the Waste Management subindustry, Waste Connections's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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 Price-to-Owner-Earnings Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Waste Connections's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Waste Connections's Price-to-Owner-Earnings falls into.



Waste Connections Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Waste Connections's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 795
Depreciation, Depletion and Amortization 1,023
Change In Deferred Tax 8
5Y Average of Maintenance Capital Expenditure 607
Change In Working Capital -11
Shares Outstanding (Diluted Average) 258

1. Start with "Net Income" from income statement. Waste Connections's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was $795 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Waste Connections's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Mar. 2024 was $1,023 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Waste Connections's Change In Deferred Tax for the trailing twelve months (TTM) ended in Mar. 2024 was $8 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $607 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Waste Connections's 5-Year Average Maintenance Capital Expenditure = $607 Mil

5. "Change In Working Capital" is from cashflow statement. Waste Connections's Change In Working Capital for the trailing twelve months (TTM) ended in Mar. 2024 was $-11 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Waste Connections's Shares Outstanding (Diluted Average) for the months ended in Mar. 2024 was 258.482 Mil.

Waste Connections's Onwer Earnings Per Share for Mar. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 795.041 +1022.851+8.495
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-607.10082736527+-10.622)/258.482
=4.68

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=174.61/4.68
=37.31

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Waste Connections Owner Earnings per Share (TTM) 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