$WCN Earnings: EPS Up 8.8% but Valuation Flags Caution

Correction, 18 September 2026: an earlier version of this post described April 29, 2026 as the end of the quarter. It is the date the results were reported.

What changed

$WCN (Waste Connections) reported results on April 29, 2026. EPS came in at $1.23, up from $1.13 in the same period a year earlier — a year-over-year gain of 8.8%. Revenue grew 6.4% over the same stretch.

Both metrics moved in the right direction, and the earnings quality flag in our model reads strong. Net margin stands at 11.0% and return on equity at 13.1%, which are respectable numbers for a waste-and-environmental-services operator. FCF yield sits at 2.8%, and the company pays a dividend yield of 0.8%.

We don't have guidance commentary from this report, so the forward picture relies on what the data already shows.

What it means

The operational story at $WCN is steady. Mid-single-digit revenue growth and high-single-digit EPS growth are consistent with what you'd expect from a large, route-dense waste hauler — pricing power, modest volume gains, and cost discipline doing the work.

The tension sits in the valuation. The trailing P/E is 42.0, and our 6-model fair value estimate comes to $119.33 — a gap of 28.9% below the current price of $167.72. The forward P/E of 22.2 is more reasonable, but that gap between trailing and forward multiples implies the market is pricing in a meaningful acceleration in earnings that hasn't fully materialized yet.

The ACCE score of 47/100 reflects that tension. The score breakdown tells the story clearly: Quality scores 67/100, the strongest component by a wide margin. Value scores 42/100 and Growth scores 28/100 — both below the midpoint. Momentum sits at 49/100, roughly neutral, which tracks with a 1-year return of -7.9%.

In plain terms: $WCN runs a high-quality business, but the stock has spent the past year giving back ground, and our models suggest the price still hasn't fully adjusted to reflect that. The analyst consensus target of $203.40 sits well above both the current price and our fair-value estimate, so there's a meaningful spread between what sell-side models expect and what our 6-model composite produces.

The 8.8% EPS growth and 6.4% revenue growth are solid, not spectacular. For a stock trading at a trailing P/E of 42.0, solid may not be enough to close the valuation gap quickly. Watch for guidance updates and any commentary on pricing trends in the next earnings cycle.

For the current price and live score, see acceinvestments.com/stocks/WCN.