Cleanaway Waste Management (ASX:CWY) - Share price, News & Analysis

CWY fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	2/6
Financial Health	3/6
Dividends	2/6

CWY Stock Overview

Cleanaway Waste Management Limited provides waste management, industrial, and environmental services in Australia.

Rewards

Trading at 13.9% below our estimate of its fair value

Earnings are forecast to grow 20.89% per year

Risk Analysis

No risks detected for CWY from our risk checks.

Cleanaway Waste Management Competitors

Downer EDI

ASX:DOW

AU$3.8b

Ariadne Australia

ASX:ARA

AU$133.4m

ALS

ASX:ALQ

AU$6.2b

Brambles

ASX:BXB

AU$15.3b

Price History & Performance

Summary of all time highs, changes and price drops for Cleanaway Waste Management
Historical stock prices
Current Share Price	AU$2.92
52 Week High	AU$3.31
52 Week Low	AU$2.46
Beta	0.86
1 Month Change	-8.75%
3 Month Change	3.55%
1 Year Change	5.80%
3 Year Change	33.33%
5 Year Change	117.91%
Change since IPO	9.36%

Recent News & Updates

May 05

Calculating The Fair Value Of Cleanaway Waste Management Limited (ASX:CWY)

Today we will run through one way of estimating the intrinsic value of Cleanaway Waste Management Limited ( ASX:CWY...

Apr 06

These 4 Measures Indicate That Cleanaway Waste Management (ASX:CWY) Is Using Debt Reasonably Well

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Mar 07

What Does Cleanaway Waste Management Limited's (ASX:CWY) Share Price Indicate?

Cleanaway Waste Management Limited ( ASX:CWY ), might not be a large cap stock, but it received a lot of attention from...

Shareholder Returns

	CWY	AU Commercial Services	AU Market
7D	-3.0%	-0.2%	-0.4%
1Y	5.8%	0.8%	-1.1%

Return vs Industry: CWY exceeded the Australian Commercial Services industry which returned 0.8% over the past year.

Return vs Market: CWY exceeded the Australian Market which returned -1.1% over the past year.

Price Volatility

Is CWY's price volatile compared to industry and market?
CWY volatility
CWY Average Weekly Movement	3.4%
Commercial Services Industry Average Movement	7.4%
Market Average Movement	9.3%
10% most volatile stocks in AU Market	16.4%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: CWY is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CWY's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2002	6,000	Mark Schubert	https://www.cleanaway.com.au

Cleanaway Waste Management Limited provides waste management, industrial, and environmental services in Australia. It operates through three segments: Solid Waste Services, Industrial & Waste Services, and Liquid Waste & Health Services. The company offers commercial and industrial, municipal, and residential collection services for various types of solid waste streams, including general waste, recyclables, construction, and demolition waste, as well as medical and washroom services.

Cleanaway Waste Management Fundamentals Summary

How do Cleanaway Waste Management's earnings and revenue compare to its market cap?
CWY fundamental statistics
Market Cap	AU$6.17b
Earnings (TTM)	AU$118.50m
Revenue (TTM)	AU$2.60b

50.8x

P/E Ratio

2.3x

P/S Ratio

Is CWY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CWY income statement (TTM)
Revenue	AU$2.60b
Cost of Revenue	AU$1.95b
Gross Profit	AU$654.10m
Other Expenses	AU$535.60m
Earnings	AU$118.50m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.057
Gross Margin	25.15%
Net Profit Margin	4.56%
Debt/Equity Ratio	40.4%

How did CWY perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

83%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Cleanaway Waste Management forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWY's forecast earnings growth (20.9% per year) is above the savings rate (1.8%).

Earnings vs Market: CWY's earnings (20.9% per year) are forecast to grow faster than the Australian market (6.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CWY's revenue (6.1% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: CWY's revenue (6.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CWY's Return on Equity is forecast to be low in 3 years time (9.2%).

Past Performance

How has Cleanaway Waste Management performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

13.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CWY has high quality earnings.

Growing Profit Margin: CWY's current net profit margins (4.6%) are lower than last year (6.3%).

Past Earnings Growth Analysis

Earnings Trend: CWY's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: CWY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CWY had negative earnings growth (-18.3%) over the past year, making it difficult to compare to the Commercial Services industry average (3.7%).

Return on Equity

High ROE: CWY's Return on Equity (4.6%) is considered low.

Financial Health

How is Cleanaway Waste Management's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CWY's short term assets (A$540.9M) do not cover its short term liabilities (A$656.2M).

Long Term Liabilities: CWY's short term assets (A$540.9M) do not cover its long term liabilities (A$2.0B).

Debt to Equity History and Analysis

Debt Level: CWY's net debt to equity ratio (38.5%) is considered satisfactory.

Reducing Debt: CWY's debt to equity ratio has increased from 20.6% to 40.4% over the past 5 years.

Debt Coverage: CWY's debt is well covered by operating cash flow (41.7%).

Interest Coverage: CWY's interest payments on its debt are well covered by EBIT (7x coverage).

Balance Sheet

Dividend

What is Cleanaway Waste Management current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.68%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CWY's dividend (1.68%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.6%).

High Dividend: CWY's dividend (1.68%) is low compared to the top 25% of dividend payers in the Australian market (6.23%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CWY has been paying a dividend for less than 10 years.

Growing Dividend: CWY's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (83.4%), CWY's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (53.3%), CWY's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure

CEO

Mark Schubert

0.75

Tenure

Mr. Mark John Schubert, BE (Chemical), has been Chief Executive Officer, Managing Director and Director at Cleanaway Waste Management Limited since August 30, 2021. He had been Executive General Manager of...

Leadership Team

Experienced Management: CWY's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: CWY's board of directors are considered experienced (8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30