Waste Connections Inc. (WCN) exhibits 42.4% gross margins and 9.9% return on invested capital within Utilities (Environmental Services), balanced against a 18.8x enterprise multiple and 5.2% implied options volatility.
Sustained 42.4% gross profitability converts into 18.1% operating margin and 9.9% ROIC, outpacing sector cost of capital.
ROIC: 9.9% // GM: 42.4%YoY revenue trajectory of +6.1% paired with 2.71% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +6.1% // FCF YLD: 2.71%Altman Z-Score of 3.13 and Piotroski F-Score of 8/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.13 // F-SCORE: 8/9Trading at 42.3x trailing P/E (39.3x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 42.3x // EV/EBITDA: 18.8xOptions market prices a ±5.2% implied move with a 0.84 put/call ratio around $178.00 max pain.
IMPL MOVE: ±5.2% // P/C: 0.84Elevated industry capital intensity and customer concentration in Environmental Services require continuous execution to defend 11.4% net margins.
NET MARGIN: 11.4% // D/E: 0.66x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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