ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Waste Connections's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.74%.
As of today (2026-06-24), Waste Connections's WACC % is 5.73%. Waste Connections's ROC % is 7.09% (calculated using TTM income statement data).
Waste Connections generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Waste Connections (MEX:WCNN) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Waste Connections's WACC % is 5.73%. Waste Connections's ROC % is 7.09% (calculated using TTM income statement data).
Waste Connections generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Waste Connections ROC % Related Terms
Waste Connections ROC % Historical Data
* Premium members only.
The historical data trend for Waste Connections's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (MEX:WCNN) has a ROC % of 6.74% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Waste Connections and its competitors.
Is Waste Connections' ROC % too high?
Waste Connections' current ROC % is 6.74%. The Waste Management industry median ROC % is 3.53. Waste Connections' value of 6.74% is 90.9% above this industry median. 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' ROC % compare to CLH and RSG?
Waste Connections' ROC % of 6.74% can be compared against companies in the Waste Management industry. The industry median ROC % is 3.53. Waste Connections' value of 6.74% is 90.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Waste Management company?
The median ROC % among Waste Management companies is 3.53, based on 246 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Waste Connections's current ROC % of 6.74% is 90.9% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Waste Connections and its competitors. For the Waste Management industry, the median ROC % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waste Connections's current ROC % is 6.74%. 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 ROC % is 6.74% and 90.9% above the Waste Management industry median of 3.53. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For Waste Connections (MEX:WCNN), the current ROC % is 6.74% 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:
ROC %: 6.74%
GF Value™: MXN3,445.03 vs. price of MXN2,800.00 (18.7% below fair value)
Industry Position: 90.9% above the Waste Management median
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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