Q: Hi can i get your opinion on Waste Connections(WCN.TO)? Also is the company to expensive to initial a position?? should i wait for a pullback?
5i Research Answer:
WCN is one of the leading operators in the waste collection industry. WCN’s growth has been quite consistent over the years through a combination of healthy organic growth and acquisitions. WCN is trading at 36.5x Forward P/E, and it has mostly traded at a premium valuation relative to its industry averages. Given the track record and resiliency of the business models, these high-quality businesses tend to trade at premium multiples and the proper course of action may be to average into the position over time. We would not be buying too aggressively at the current price, however.