CASELLA WASTE SYSTEMS INC-A (CWST) Stock Fundamental Analysis
NASDAQ:CWST - Nasdaq - US1474481041 - Common Stock - Currency: USD
Overall CWST gets a fundamental rating of 4 out of 10. We evaluated CWST against 83 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of CWST get a neutral evaluation. Nothing too spectacular is happening here. CWST is valued quite expensive, but it does show an excellent growth.
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.
In the past 5 years CWST always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CWST (0.40%) is comparable to the rest of the industry.
CWST's Return On Equity of 0.83% is in line compared to the rest of the industry. CWST outperforms 48.19% of its industry peers.
CWST's Return On Invested Capital of 2.27% is on the low side compared to the rest of the industry. CWST is outperformed by 60.24% of its industry peers.
CWST had an Average Return On Invested Capital over the past 3 years of 3.61%. This is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 0.83% | ||
| ROIC | 2.27% |
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's Profit Margin of 0.79% is in line compared to the rest of the industry. CWST outperforms 45.78% of its industry peers.
CWST's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.19%, CWST is in line with its industry, outperforming 51.81% of the companies in the same industry.
In the last couple of years the Operating Margin of CWST has declined.
The Gross Margin of CWST (34.06%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CWST has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.19% | ||
| PM (TTM) | 0.79% | ||
| GM | 34.06% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWST is destroying value.
The number of shares outstanding for CWST has been increased compared to 1 year ago.
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 an Altman-Z score of 3.29. This indicates that CWST is financially healthy and has little risk of bankruptcy at the moment.
CWST has a better Altman-Z score (3.29) than 65.06% of its industry peers.
CWST has a debt to FCF ratio of 11.95. This is a negative value and a sign of low solvency as CWST would need 11.95 years to pay back of all of its debts.
CWST has a Debt to FCF ratio (11.95) which is in line with its industry peers.
CWST has a Debt/Equity ratio of 0.72. This is a neutral value indicating CWST is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, CWST perfoms like the industry average, outperforming 40.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 11.95 | ||
| Altman-Z | 3.29 |
ROIC/WACC0.23
WACC9.78%
2.3 Liquidity
CWST has a Current Ratio of 1.96. This is a normal value and indicates that CWST is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.96, CWST is doing good in the industry, outperforming 68.67% of the companies in the same industry.
CWST has a Quick Ratio of 1.87. This is a normal value and indicates that CWST is financially healthy and should not expect problems in meeting its short term obligations.
CWST has a Quick ratio of 1.87. This is in the better half of the industry: CWST outperforms 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
CWST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.33%, which is quite impressive.
CWST shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.16% yearly.
CWST shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.63%.
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)31.33%
EPS 3Y0%
EPS 5Y1.16%
EPS Q2Q%2000%
Revenue 1Y (TTM)21.63%
Revenue growth 3Y20.54%
Revenue growth 5Y15.94%
Sales Q2Q%22.31%
3.2 Future
Based on estimates for the next years, CWST will show a very strong growth in Earnings Per Share. The EPS will grow by 26.44% on average per year.
CWST is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.90% yearly.
EPS Next Y24.79%
EPS Next 2Y25.07%
EPS Next 3Y29.33%
EPS Next 5Y26.44%
Revenue Next Year16.65%
Revenue Next 2Y11.83%
Revenue Next 3Y11.68%
Revenue Next 5Y10.9%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
CWST is valuated quite expensively with a Price/Earnings ratio of 105.34.
61.45% of the companies in the same industry are cheaper than CWST, based on the Price/Earnings ratio.
CWST's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
CWST is valuated quite expensively with a Price/Forward Earnings ratio of 82.48.
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 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105.34 | ||
| Fwd PE | 82.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CWST is valued a bit more expensive than 61.45% of the companies in the same industry.
CWST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.64 | ||
| EV/EBITDA | 23.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CWST's earnings are expected to grow with 29.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.25
PEG (5Y)90.57
EPS Next 2Y25.07%
EPS Next 3Y29.33%
5. Dividend
5.1 Amount
No dividends for CWST!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
114.82
-0.56 (-0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners107.34%
Inst Owner Change0.56%
Ins Owners0.6%
Ins Owner Change1.5%
Market Cap7.29B
Analysts78.75
Price Target125.15 (9%)
Short Float %3.73%
Short Ratio5.13
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)2
Avg EPS beat(2)126.58%
Min EPS beat(2)98.4%
Max EPS beat(2)154.76%
EPS beat(4)2
Avg EPS beat(4)57.1%
Min EPS beat(4)-22.52%
Max EPS beat(4)154.76%
EPS beat(8)3
Avg EPS beat(8)30.36%
EPS beat(12)6
Avg EPS beat(12)23.28%
EPS beat(16)10
Avg EPS beat(16)20.35%
Revenue beat(2)2
Avg Revenue beat(2)0.62%
Min Revenue beat(2)0.05%
Max Revenue beat(2)1.2%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-2.19%
Max Revenue beat(4)1.2%
Revenue beat(8)2
Avg Revenue beat(8)-2.02%
Revenue beat(12)6
Avg Revenue beat(12)0.32%
Revenue beat(16)10
Avg Revenue beat(16)1.13%
PT rev (1m)0.45%
PT rev (3m)5.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.91%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-3.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105.34 | ||
| Fwd PE | 82.48 | ||
| P/S | 4.46 | ||
| P/FCF | 76.64 | ||
| P/OCF | 22.5 | ||
| P/B | 4.71 | ||
| P/tB | 40.98 | ||
| EV/EBITDA | 23.17 |
EPS(TTM)1.09
EY0.95%
EPS(NY)1.39
Fwd EY1.21%
FCF(TTM)1.5
FCFY1.3%
OCF(TTM)5.1
OCFY4.44%
SpS25.74
BVpS24.38
TBVpS2.8
PEG (NY)4.25
PEG (5Y)90.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 0.83% | ||
| ROCE | 3.42% | ||
| ROIC | 2.27% | ||
| ROICexc | 2.5% | ||
| ROICexgc | 5.1% | ||
| OM | 6.19% | ||
| PM (TTM) | 0.79% | ||
| GM | 34.06% | ||
| FCFM | 5.82% |
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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 11.95 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 90.64% | ||
| Cap/Sales | 14% | ||
| Interest Coverage | 1.72 | ||
| Cash Conversion | 91.61% | ||
| Profit Quality | 740.23% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 3.29 |
F-Score5
WACC9.78%
ROIC/WACC0.23
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)31.33%
EPS 3Y0%
EPS 5Y1.16%
EPS Q2Q%2000%
EPS Next Y24.79%
EPS Next 2Y25.07%
EPS Next 3Y29.33%
EPS Next 5Y26.44%
Revenue 1Y (TTM)21.63%
Revenue growth 3Y20.54%
Revenue growth 5Y15.94%
Sales Q2Q%22.31%
Revenue Next Year16.65%
Revenue Next 2Y11.83%
Revenue Next 3Y11.68%
Revenue Next 5Y10.9%
EBIT growth 1Y-3.24%
EBIT growth 3Y7.31%
EBIT growth 5Y12.26%
EBIT Next Year263.54%
EBIT Next 3Y65.29%
EBIT Next 5Y41.15%
FCF growth 1Y30.77%
FCF growth 3Y9.43%
FCF growth 5Y41.76%
OCF growth 1Y55.15%
OCF growth 3Y15.48%
OCF growth 5Y19.22%