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Investment Q&A

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Q: WCN halted share buybacks, matched estimates on the quarter, 0.7% dividend and looking pricey at 33x. I've held it a long time and up nicely 60% in registered account . Would it be prudent to swap it out for GDI for better growth?
Thanks
Steve

Asked by Steven on August 09, 2023

5i Research Answer:

We wouldn't be against profit taking. GDI trades similarly at 33x forward earnings with slower growth prospects compared to WCN over the next three years. Despite the size differences, relative balance sheet metrics are similar, and margins are much higher for WCN. If that is something an investor is okay with, we would be okay with the swap.

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