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Cleanaway Waste Management

Market Cap

AU$5.5b

Last Updated

2021/09/20 15:29 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Earnings are forecast to grow 13.41% per year

Earnings grew by 28.7% over the past year

Risk Analysis

CWY passed our risk checks.


Snowflake Analysis

Solid track record with limited growth.


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 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.


Market Performance


7 Day Return

4.3%

CWY

-0.1%

AU Commercial Services

-2.7%

AU Market


1 Year Return

23.7%

CWY

16.2%

AU Commercial Services

26.0%

AU Market

Return vs Industry: CWY exceeded the Australian Commercial Services industry which returned 17.8% over the past year.

Return vs Market: CWY underperformed the Australian Market which returned 28.8% over the past year.


Shareholder returns

CWYIndustryMarket
7 Day4.3%-0.1%-2.7%
30 Day0%-5.7%-2.5%
90 Day-0.7%1.3%-0.7%
1 Year26.1%23.7%19.7%16.2%31.3%26.0%
3 Year51.5%43.8%7.4%-0.7%33.0%16.7%
5 Year171.2%145.2%26.7%6.5%62.6%30.4%

Long-Term 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

Valuation

Is Cleanaway Waste Management undervalued compared to its fair value and its price relative to the market?

37.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CWY (A$2.66) is trading above our estimate of fair value (A$2.36)

Significantly Below Fair Value: CWY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CWY is poor value based on its PE Ratio (37.7x) compared to the Australian Commercial Services industry average (18.4x).

PE vs Market: CWY is poor value based on its PE Ratio (37.7x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CWY is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: CWY is good value based on its PB Ratio (2.1x) compared to the AU Commercial Services industry average (2.5x).


Future Growth

How is Cleanaway Waste Management forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWY's forecast earnings growth (13.4% per year) is above the savings rate (1.9%).

Earnings vs Market: CWY's earnings (13.4% per year) are forecast to grow faster than the Australian market (12% per year).

High Growth Earnings: CWY's earnings are forecast to grow, but not significantly.

Revenue vs Market: CWY's revenue (5.6% per year) is forecast to grow slower than the Australian market (5.9% per year).

High Growth Revenue: CWY's revenue (5.6% 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 (7.7%).


Past Performance

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

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWY has high quality earnings.

Growing Profit Margin: CWY's current net profit margins (6%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: CWY's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: CWY's earnings growth over the past year (28.7%) exceeds its 5-year average (18.8% per year).

Earnings vs Industry: CWY earnings growth over the past year (28.7%) exceeded the Commercial Services industry 15.3%.


Return on Equity

High ROE: CWY's Return on Equity (5.6%) is considered low.


Financial Health

How is Cleanaway Waste Management's financial position?


Financial Position Analysis

Short Term Liabilities: CWY's short term assets (A$492.5M) do not cover its short term liabilities (A$564.0M).

Long Term Liabilities: CWY's short term assets (A$492.5M) do not cover its long term liabilities (A$1.5B).


Debt to Equity History and Analysis

Debt Level: CWY's debt to equity ratio (23%) is considered satisfactory.

Reducing Debt: CWY's debt to equity ratio has increased from 20.2% to 23% over the past 5 years.

Debt Coverage: CWY's debt is well covered by operating cash flow (70.1%).

Interest Coverage: CWY's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Dividend

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

1.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWY's dividend (1.77%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: CWY's dividend (1.77%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.1%), 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 (61.1% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Mark Schubert

0.083

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 ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: CWY's board of directors are considered experienced (6.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CWY 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$5.482b
  • Shares outstanding: 2.06b
  • 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


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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 15:29
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.