Cleanaway Waste Management
Market Cap
AU$3.6b
Last Updated
2020/04/03 10:35 UTC
Data Sources
Company Financials +
Executive Summary
Cleanaway Waste Management Limited provides waste management, industrial, and environmental services in Australia.
Rewards
Risk Analysis
Snowflake Analysis
Fair value with mediocre balance sheet.
Similar Companies
Share Price & News
How has Cleanaway Waste Management's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CWY's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.7%
CWY
11.0%
AU Commercial Services
1.1%
AU Market
1 Year Return
-25.8%
CWY
-16.1%
AU Commercial Services
-18.9%
AU Market
Return vs Industry: CWY exceeded the Australian Commercial Services industry which returned -22% over the past year.
Return vs Market: CWY underperformed the Australian Market which returned -19.4% over the past year.
Shareholder returns
| CWY | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.7% | 11.0% | 1.1% |
| 30 Day | -26.4% | -14.3% | -20.8% |
| 90 Day | -16.2% | -17.1% | -25.0% |
| 1 Year | -24.4%-25.8% | -11.6%-16.1% | -15.2%-18.9% |
| 3 Year | 52.5%42.8% | 18.0%4.8% | -2.6%-16.0% |
| 5 Year | 131.2%108.0% | 22.3%-0.3% | 7.9%-16.4% |
Price Volatility Vs. Market
How volatile is Cleanaway Waste Management's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Is Cleanaway Waste Management Limited (ASX:CWY) Struggling With Its 5.2% Return On Capital Employed?1 month ago | Simply Wall St
Cleanaway Waste Management Limited (ASX:CWY) Looks Like A Good Stock, And It's Going Ex-Dividend Soon1 month ago | Simply Wall St
Cleanaway Waste Management Limited (ASX:CWY) Insiders Increased Their HoldingsValuation
Is Cleanaway Waste Management undervalued compared to its fair value and its price relative to the market?
26.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CWY (A$1.81) is trading below our estimate of fair value (A$2.26)
Significantly Below Fair Value: CWY is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CWY is poor value based on its PE Ratio (34x) compared to the Commercial Services industry average (16.8x).
PE vs Market: CWY is poor value based on its PE Ratio (34x) compared to the Australian market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: CWY is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: CWY is good value based on its PB Ratio (1.5x) compared to the AU Commercial Services industry average (1.5x).
Next Steps
Future Growth
How is Cleanaway Waste Management forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
13.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CWY's forecast earnings growth (13.5% per year) is above the savings rate (1.1%).
Earnings vs Market: CWY's earnings (13.5% per year) are forecast to grow faster than the Australian market (9.7% per year).
High Growth Earnings: CWY's earnings are forecast to grow, but not significantly.
Revenue vs Market: CWY's revenue (2.9% per year) is forecast to grow slower than the Australian market (4% per year).
High Growth Revenue: CWY's revenue (2.9% 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 (6.8%).
Next Steps
Past Performance
How has Cleanaway Waste Management performed over the past 5 years?
52.7%
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 (5.7%).
Past Earnings Growth Analysis
Earnings Trend: CWY has become profitable over the past 5 years, growing earnings by 52.7% per year.
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 (-8.9%) over the past year, making it difficult to compare to the Commercial Services industry average (0.9%).
Return on Equity
High ROE: CWY's Return on Equity (4.2%) is considered low.
Next Steps
Financial Health
How is Cleanaway Waste Management's financial position?
Financial Position Analysis
Short Term Liabilities: CWY's short term assets (A$492.2M) do not cover its short term liabilities (A$539.7M).
Long Term Liabilities: CWY's short term assets (A$492.2M) do not cover its long term liabilities (A$1.4B).
Debt to Equity History and Analysis
Debt Level: CWY's debt to equity ratio (25.4%) is considered satisfactory.
Reducing Debt: CWY's debt to equity ratio has increased from 5.3% to 25.4% over the past 5 years.
Balance Sheet
Inventory Level: CWY has a high level of physical assets or inventory.
Debt Coverage by Assets: CWY's debt is not covered by short term assets (assets are 0.8x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: CWY is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: CWY is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Cleanaway Waste Management's current dividend yield, its reliability and sustainability?
2.37%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CWY's dividend (2.22%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (3.17%).
High Dividend: CWY's dividend (2.22%) is low compared to the top 25% of dividend payers in the Australian market (8.18%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73.5%), CWY's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CWY's dividends in 3 years are forecast to be covered by earnings (57.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.6yrs
Average management tenure
CEO
Vik Bansal
4.67s
Tenure
AU$4,374,374
Compensation
Mr. Vikas Bansal, also known as Vik, has been the Chief Executive Officer and Managing Director at Cleanaway Waste Management Limited since August 03, 2015. Mr. Bansal has been an Executive Director at Cle ...
CEO Compensation Analysis
Compensation vs Market: Vik's total compensation ($USD2.68M) is above average for companies of similar size in the Australian market ($USD1.79M).
Compensation vs Earnings: Vik's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 4.67yrs | AU$4.37m | 0.26% A$9.4m | |
| Chief Financial Officer | 5.58yrs | AU$1.50m | 0.027% A$969.5k | |
| Head of Investor Relations & Corporate Affairs | 8.5yrs | no data | no data | |
| General Counsel & Company Secretary | 6.08yrs | no data | no data | |
| Executive General Manager of Human Resources | 4.33yrs | no data | no data |
5.6yrs
Average Tenure
Experienced Management: CWY's management team is seasoned and experienced (5.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 4.67yrs | AU$4.37m | 0.26% A$9.4m | |
| Independent Non-Executive Director | 7.08yrs | AU$174.50k | 0.0014% A$51.8k | |
| Independent Non-Executive Director | 9yrs | AU$185.00k | 0.0060% A$215.2k | |
| Independent Non-Executive Chairman | 3.58yrs | AU$330.00k | 0.0076% A$272.4k | |
| Independent Non-Executive Director | 8.67yrs | AU$164.00k | 0.0061% A$218.8k | |
| Independent Non-Executive Director | 5.92yrs | AU$174.50k | 0.0040% A$143.8k | |
| Independent Non-Executive Director | 8yrs | AU$164.00k | 0.0024% A$86.0k | |
| Independent Non-Executive Director | 0.42yr | no data | no data |
6.5yrs
Average Tenure
63yo
Average Age
Experienced Board: CWY's board of directors are considered experienced (6.5 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.
Top Shareholders
Company Information
Cleanaway Waste Management Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cleanaway Waste Management Limited
- Ticker: CWY
- Exchange: ASX
- Founded: 2002
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Market Cap: AU$3.569b
- Shares outstanding: 2.05b
- Website: https://www.cleanaway.com.au
Number of Employees
Location
- Cleanaway Waste Management Limited
- 441 St Kilda Road
- Level 4
- Melbourne
- Victoria
- 3004
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CWY | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | May 2005 |
| TSPC.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 2005 |
| TG9 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 2005 |
| CWY | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | May 2005 |
| CWY | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | May 2005 |
| TG9 | BRSE (Berne Stock Exchange) | Yes | Ordinary Shares | CH | CHF | May 2005 |
Biography
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. It owns and manages waste transfer stations, resource recovery and recycling facilities, secure product destruction, quarantine treatment operations, and landfills; sale of recovered paper, cardboard, metals, and plastics; and collection, treatment, processing, and recycling of liquid and hazardous waste, including industrial waste, grease trap waste, oily waters, and used mineral and cooking oils in packaged and bulk forms. In addition, the company offers industrial solutions comprising industrial cleaning, vacuum tanker loading, site remediation, sludge management, parts washing, concrete remediation, CCTV, corrosion protection, and emergency response services. Further, it refines and recycles used mineral oils to produce fuel oils and base oils; generates and sells electricity produced utilizing landfill gas; and provides health and biohazardous waste, organic waste, e-waste recycling, industrial construction and cleaning, and equipment cleaning services, as well as spill kits. The company was formerly known as Transpacific Industries Group Ltd. and changed its name to Cleanaway Waste Management Limited in February 2016. Cleanaway Waste Management Limited was incorporated in 2002 and is headquartered in Melbourne, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 10:35 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.