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Waste Connections (Waste Connections) Forward Rate of Return (Yacktman) % : 15.44% (As of Mar. 2024)


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What is Waste Connections Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Waste Connections's forward rate of return for was 15.44%.

The historical rank and industry rank for Waste Connections's Forward Rate of Return (Yacktman) % or its related term are showing as below:

WCN' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -10.24   Med: 13.73   Max: 23.51
Current: 15.35

During the past 13 years, Waste Connections's highest Forward Rate of Return was 23.51. The lowest was -10.24. And the median was 13.73.

WCN's Forward Rate of Return (Yacktman) % is ranked better than
63.11% of 122 companies
in the Waste Management industry
Industry Median: 8.89 vs WCN: 15.35

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Waste Connections Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Waste Connections's Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % Chart

Waste Connections Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.77 22.64 8.48 9.46 14.50

Waste Connections Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Forward Rate of Return (Yacktman) % 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 10.39 11.94 13.63 14.50 15.44

Competitive Comparison of Waste Connections's Forward Rate of Return (Yacktman) %

For the Waste Management subindustry, Waste Connections's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Waste Connections's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Waste Connections's Forward Rate of Return (Yacktman) % falls into.



Waste Connections Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

Waste Connections's Forward Rate of Return of Mar. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=3.79580952/172.01+0.1323
=15.44 %

* 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) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


Waste Connections Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Waste Connections's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Waste Connections (Waste Connections) Business Description

Industry
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