CASELLA WASTE SYSTEMS INC-A (CWST) Stock Fundamental Analysis
NASDAQ:CWST - Nasdaq - US1474481041 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CWST. CWST was compared to 83 industry peers in the Commercial Services & Supplies industry. CWST has only an average score on both its financial health and profitability. CWST is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CWST had positive earnings in the past year.
CWST had a positive operating cash flow in the past year.
In the past 5 years CWST has always been profitable.
In the past 5 years CWST always reported a positive cash flow from operatings.
1.2 Ratios
CWST has a Return On Assets (0.42%) which is in line with its industry peers.
CWST has a Return On Equity of 0.87%. This is comparable to the rest of the industry: CWST outperforms 45.78% of its industry peers.
CWST has a Return On Invested Capital (2.37%) which is comparable to the rest of the industry.
CWST had an Average Return On Invested Capital over the past 3 years of 3.61%. This is significantly below the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.42% | ||
| ROE | 0.87% | ||
| ROIC | 2.37% |
ROA(3y)1.69%
ROA(5y)3.18%
ROE(3y)4.67%
ROE(5y)9.78%
ROIC(3y)3.61%
ROIC(5y)3.98%
1.3 Margins
Looking at the Profit Margin, with a value of 0.87%, CWST is in line with its industry, outperforming 46.99% of the companies in the same industry.
In the last couple of years the Profit Margin of CWST has declined.
The Operating Margin of CWST (6.70%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CWST has declined.
CWST's Gross Margin of 34.03% is in line compared to the rest of the industry. CWST outperforms 55.42% of its industry peers.
In the last couple of years the Gross Margin of CWST has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.7% | ||
| PM (TTM) | 0.87% | ||
| GM | 34.03% |
OM growth 3Y-10.98%
OM growth 5Y-3.18%
PM growth 3Y-42.71%
PM growth 5Y-27.25%
GM growth 3Y-0.46%
GM growth 5Y1.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWST is destroying value.
CWST has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CWST has more shares outstanding
CWST has a better debt/assets ratio than last year.
2.2 Solvency
CWST has an Altman-Z score of 3.24. This indicates that CWST is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.24, CWST is doing good in the industry, outperforming 65.06% of the companies in the same industry.
CWST has a debt to FCF ratio of 14.56. This is a negative value and a sign of low solvency as CWST would need 14.56 years to pay back of all of its debts.
With a Debt to FCF ratio value of 14.56, CWST perfoms like the industry average, outperforming 48.19% of the companies in the same industry.
CWST has a Debt/Equity ratio of 0.70. This is a neutral value indicating CWST is somewhat dependend on debt financing.
The Debt to Equity ratio of CWST (0.70) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 14.56 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.29
WACC8.3%
2.3 Liquidity
A Current Ratio of 2.00 indicates that CWST should not have too much problems paying its short term obligations.
CWST has a Current ratio of 2.00. This is in the better half of the industry: CWST outperforms 72.29% of its industry peers.
CWST has a Quick Ratio of 1.93. This is a normal value and indicates that CWST is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CWST (1.93) is better than 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
CWST shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.32%.
The Earnings Per Share has been growing slightly by 1.16% on average over the past years.
CWST shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.16%.
CWST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.94% yearly.
EPS 1Y (TTM)-5.32%
EPS 3Y0%
EPS 5Y1.16%
EPS Q2Q%215.38%
Revenue 1Y (TTM)23.16%
Revenue growth 3Y20.54%
Revenue growth 5Y15.94%
Sales Q2Q%18.89%
3.2 Future
CWST is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.07% yearly.
The Revenue is expected to grow by 9.86% on average over the next years. This is quite good.
EPS Next Y28.02%
EPS Next 2Y24.25%
EPS Next 3Y26.54%
EPS Next 5Y25.07%
Revenue Next Year15.89%
Revenue Next 2Y11.12%
Revenue Next 3Y10.28%
Revenue Next 5Y9.86%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 128.85, which means the current valuation is very expensive for CWST.
63.86% of the companies in the same industry are cheaper than CWST, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.63. CWST is valued rather expensively when compared to this.
CWST is valuated quite expensively with a Price/Forward Earnings ratio of 100.65.
The rest of the industry has a similar Price/Forward Earnings ratio as CWST.
CWST's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.85 | ||
| Fwd PE | 100.65 |
4.2 Price Multiples
CWST's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CWST is more expensive than 63.86% of the companies in the same industry.
CWST's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CWST is more expensive than 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93.33 | ||
| EV/EBITDA | 23.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CWST does not grow enough to justify the current Price/Earnings ratio.
CWST's earnings are expected to grow with 26.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.6
PEG (5Y)110.78
EPS Next 2Y24.25%
EPS Next 3Y26.54%
5. Dividend
5.1 Amount
No dividends for CWST!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
114.675
-3.62 (-3.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners108.67%
Inst Owner Change-0.38%
Ins Owners0.59%
Ins Owner Change-3.91%
Market Cap7.27B
Analysts78.67
Price Target117.38 (2.36%)
Short Float %2.43%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)76.26%
Min EPS beat(2)-2.24%
Max EPS beat(2)154.76%
EPS beat(4)2
Avg EPS beat(4)44.82%
Min EPS beat(4)-22.52%
Max EPS beat(4)154.76%
EPS beat(8)3
Avg EPS beat(8)19.33%
EPS beat(12)6
Avg EPS beat(12)15.44%
EPS beat(16)10
Avg EPS beat(16)20.07%
Revenue beat(2)1
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)0.05%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-2.19%
Max Revenue beat(4)0.05%
Revenue beat(8)2
Avg Revenue beat(8)-2.02%
Revenue beat(12)6
Avg Revenue beat(12)0.57%
Revenue beat(16)9
Avg Revenue beat(16)0.97%
PT rev (1m)-1.33%
PT rev (3m)-0.79%
EPS NQ rev (1m)15.99%
EPS NQ rev (3m)90.22%
EPS NY rev (1m)-1.16%
EPS NY rev (3m)7.52%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.85 | ||
| Fwd PE | 100.65 | ||
| P/S | 4.67 | ||
| P/FCF | 93.33 | ||
| P/OCF | 25.82 | ||
| P/B | 4.69 | ||
| P/tB | 30.9 | ||
| EV/EBITDA | 23.63 |
EPS(TTM)0.89
EY0.78%
EPS(NY)1.14
Fwd EY0.99%
FCF(TTM)1.23
FCFY1.07%
OCF(TTM)4.44
OCFY3.87%
SpS24.58
BVpS24.48
TBVpS3.71
PEG (NY)4.6
PEG (5Y)110.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.42% | ||
| ROE | 0.87% | ||
| ROCE | 3.57% | ||
| ROIC | 2.37% | ||
| ROICexc | 2.73% | ||
| ROICexgc | 5.66% | ||
| OM | 6.7% | ||
| PM (TTM) | 0.87% | ||
| GM | 34.03% | ||
| FCFM | 5% |
ROA(3y)1.69%
ROA(5y)3.18%
ROE(3y)4.67%
ROE(5y)9.78%
ROIC(3y)3.61%
ROIC(5y)3.98%
ROICexc(3y)3.95%
ROICexc(5y)4.35%
ROICexgc(3y)6.82%
ROICexgc(5y)6.88%
ROCE(3y)5.43%
ROCE(5y)5.99%
ROICexcg growth 3Y-8.01%
ROICexcg growth 5Y-4.21%
ROICexc growth 3Y-18.87%
ROICexc growth 5Y-10.94%
OM growth 3Y-10.98%
OM growth 5Y-3.18%
PM growth 3Y-42.71%
PM growth 5Y-27.25%
GM growth 3Y-0.46%
GM growth 5Y1.52%
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 14.56 | ||
| Debt/EBITDA | 3.22 | ||
| Cap/Depr | 86.63% | ||
| Cap/Sales | 13.07% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 82.95% | ||
| Profit Quality | 575.12% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 3.24 |
F-Score5
WACC8.3%
ROIC/WACC0.29
Cap/Depr(3y)93.67%
Cap/Depr(5y)103.82%
Cap/Sales(3y)12.46%
Cap/Sales(5y)13.04%
Profit Quality(3y)348.49%
Profit Quality(5y)244.98%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.32%
EPS 3Y0%
EPS 5Y1.16%
EPS Q2Q%215.38%
EPS Next Y28.02%
EPS Next 2Y24.25%
EPS Next 3Y26.54%
EPS Next 5Y25.07%
Revenue 1Y (TTM)23.16%
Revenue growth 3Y20.54%
Revenue growth 5Y15.94%
Sales Q2Q%18.89%
Revenue Next Year15.89%
Revenue Next 2Y11.12%
Revenue Next 3Y10.28%
Revenue Next 5Y9.86%
EBIT growth 1Y-1.58%
EBIT growth 3Y7.31%
EBIT growth 5Y12.26%
EBIT Next Year261.84%
EBIT Next 3Y62.04%
EBIT Next 5Y40.05%
FCF growth 1Y-0.43%
FCF growth 3Y9.43%
FCF growth 5Y41.76%
OCF growth 1Y20.71%
OCF growth 3Y15.48%
OCF growth 5Y19.22%