Waste Connections: I Love Trash $WCN
Waste Connections (NYSE:WCN) is the third largest solid waste company in North America. Waste Connections differs from its competitors by focusing on secondary markets, i.e. not direct large urban centers, as well as markets where they can be the exclusive provider or at least gain a larger portion of the local market share.
Waste Connections provides waste collection, transfer, disposal and recycling services across both the United States and Canada. Waste Connections serves over 6 million commercial, industrial, and residential customers in its service areas which speaks to how fragmented the industry is.
WCN Locations (WCN Investor Presentation May 2022)
Waste removal and disposal is one of those critical, yet boring and often overlooked businesses. I can tell you I've never espoused the virtues of my local trash collector which reinforces the fact that the business is an under-the-radar investment.
WCN Capital Allocation (WCN Investor Presentation May 2022)
Waste Connections has been quite aggressive on the M&A front, especially so over the 2016-2021 period. However, moving forward, management appears to be preparing for share buybacks to be a larger potential source of capital return.
I'm intrigued by Waste Connections and would love to add another trash company to my portfolio, so it is time to take a deeper look to see if now might be the right time to pick up some shares.
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