CASELLA WASTE SYSTEMS INC-A (CWST) Stock Fundamental Analysis
NASDAQ:CWST - Nasdaq - US1474481041 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CWST. CWST was compared to 84 industry peers in the Commercial Services & Supplies industry. CWST has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
CWST had positive earnings in each of the past 5 years.
Each year in the past 5 years CWST had a positive operating cash flow.
1.2 Ratios
CWST has a Return On Assets (0.42%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 0.87%, CWST is in line with its industry, outperforming 43.90% of the companies in the same industry.
CWST's Return On Invested Capital of 2.37% is on the low side compared to the rest of the industry. CWST is outperformed by 62.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CWST is significantly below the industry average of 10.12%.
| 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
CWST has a Profit Margin (0.87%) which is comparable to the rest of the industry.
CWST's Profit Margin has declined in the last couple of years.
CWST has a Operating Margin of 6.70%. This is comparable to the rest of the industry: CWST outperforms 52.44% of its industry peers.
In the last couple of years the Operating Margin of CWST has declined.
CWST has a Gross Margin (34.03%) which is comparable to the rest of the industry.
CWST's Gross Margin has improved in the last couple of years.
| 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
CWST has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CWST has more shares outstanding
CWST has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CWST has been reduced compared to a year ago.
2.2 Solvency
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.
CWST has a Debt to FCF ratio of 14.56. This is comparable to the rest of the industry: CWST outperforms 47.56% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that CWST is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, CWST perfoms like the industry average, outperforming 42.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 14.56 | ||
| Altman-Z | N/A |
ROIC/WACC0.28
WACC8.36%
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 74.39% of its industry peers.
A Quick Ratio of 2.00 indicates that CWST should not have too much problems paying its short term obligations.
CWST has a better Quick ratio (2.00) than 81.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
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%.
Measured over the past 5 years, CWST shows a small growth in Earnings Per Share. The EPS has been growing by 1.16% on average per year.
The Revenue has grown by 23.16% in the past year. This is a very strong growth!
Measured over the past years, CWST shows a quite strong growth in Revenue. The Revenue has been growing by 15.94% on average per year.
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 23.03% yearly.
The Revenue is expected to grow by 9.63% on average over the next years. This is quite good.
EPS Next Y29.52%
EPS Next 2Y27.33%
EPS Next 3Y23.03%
EPS Next 5YN/A
Revenue Next Year14.11%
Revenue Next 2Y10.18%
Revenue Next 3Y9.05%
Revenue Next 5Y9.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 128.08, which means the current valuation is very expensive for CWST.
CWST's Price/Earnings ratio is a bit more expensive when compared to the industry. CWST is more expensive than 64.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of CWST to the average of the S&P500 Index (29.63), we can say CWST is valued expensively.
Based on the Price/Forward Earnings ratio of 98.89, the valuation of CWST can be described as expensive.
Based on the Price/Forward Earnings ratio, CWST is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
CWST's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.08 | ||
| Fwd PE | 98.89 |
4.2 Price Multiples
64.63% of the companies in the same industry are cheaper than CWST, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CWST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.71 | ||
| EV/EBITDA | 23.57 |
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 23.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.34
PEG (5Y)110.12
EPS Next 2Y27.33%
EPS Next 3Y23.03%
5. Dividend
5.1 Amount
CWST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
113.99
-1.71 (-1.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.76%
Inst Owner Change2.61%
Ins Owners0.71%
Ins Owner Change-7.23%
Market Cap7.14B
Analysts80
Price Target118.96 (4.36%)
Short Float %2.95%
Short Ratio5.93
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)-1.18%
PT rev (3m)-0.8%
EPS NQ rev (1m)-28.5%
EPS NQ rev (3m)-27.53%
EPS NY rev (1m)-9.55%
EPS NY rev (3m)-9.55%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)7.2%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.08 | ||
| Fwd PE | 98.89 | ||
| P/S | 4.58 | ||
| P/FCF | 91.71 | ||
| P/OCF | 25.37 | ||
| P/B | 4.6 | ||
| P/tB | 30.37 | ||
| EV/EBITDA | 23.57 |
EPS(TTM)0.89
EY0.78%
EPS(NY)1.15
Fwd EY1.01%
FCF(TTM)1.24
FCFY1.09%
OCF(TTM)4.49
OCFY3.94%
SpS24.86
BVpS24.76
TBVpS3.75
PEG (NY)4.34
PEG (5Y)110.12
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 | 2 | ||
| Altman-Z | N/A |
F-Score5
WACC8.36%
ROIC/WACC0.28
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 Y29.52%
EPS Next 2Y27.33%
EPS Next 3Y23.03%
EPS Next 5YN/A
Revenue 1Y (TTM)23.16%
Revenue growth 3Y20.54%
Revenue growth 5Y15.94%
Sales Q2Q%18.89%
Revenue Next Year14.11%
Revenue Next 2Y10.18%
Revenue Next 3Y9.05%
Revenue Next 5Y9.63%
EBIT growth 1Y-1.58%
EBIT growth 3Y7.31%
EBIT growth 5Y12.26%
EBIT Next Year256.77%
EBIT Next 3Y65.54%
EBIT Next 5Y40.9%
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%