ASX:CWY

Stock Analysis Report

Cleanaway Waste Management

Executive Summary

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

Rewards

Trading at 11.4% below its fair value

Earnings are forecast to grow 15.01% per year

Risk Analysis

No risks detected for CWY from our risk checks.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

CWY

-4.4%

AU Commercial Services

-6.2%

AU Market


1 Year Return

6.5%

CWY

2.7%

AU Commercial Services

7.9%

AU Market

Return vs Industry: CWY exceeded the Australian Commercial Services industry which returned 2.7% over the past year.

Return vs Market: CWY underperformed the Australian Market which returned 7.9% over the past year.


Shareholder returns

CWYIndustryMarket
7 Day-0.4%-4.4%-6.2%
30 Day12.7%-2.0%-5.9%
90 Day9.0%-6.3%-2.7%
1 Year8.3%6.5%8.1%2.7%12.6%7.9%
3 Year98.8%86.3%32.8%18.5%31.3%13.8%
5 Year232.7%202.0%50.2%22.8%42.6%10.6%

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?

11.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWY (A$2.31) is trading below our estimate of fair value (A$2.61)

Significantly Below Fair Value: CWY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CWY is poor value based on its PE Ratio (43.5x) compared to the Commercial Services industry average (14.7x).

PE vs Market: CWY is poor value based on its PE Ratio (43.5x) compared to the Australian market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: CWY is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: CWY is good value based on its PB Ratio (1.9x) compared to the AU Commercial Services industry average (2.6x).


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?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWY's forecast earnings growth (15% per year) is above the savings rate (1.1%).

Earnings vs Market: CWY's earnings (15% per year) are forecast to grow faster than the Australian market (9.4% per year).

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

Revenue vs Market: CWY's revenue (3.6% per year) is forecast to grow slower than the Australian market (4.1% per year).

High Growth Revenue: CWY's revenue (3.6% 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 (7.4%).


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 (26.4%).


Return on Equity

High ROE: CWY's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


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?

1.73%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Cleanaway Waste Management before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.7%marketbottom25%2.4%markettop25%5.7%industryaverage2.7%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: CWY's dividend (1.73%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: CWY's dividend (1.73%) is low compared to the top 25% of dividend payers in the Australian market (5.72%).


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 (54.4% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Vik Bansal 0

4.5yrs

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 ($USD2.87M) is above average for companies of similar size in the Australian market ($USD2.12M).

Compensation vs Earnings: Vik's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vikas Bansal
CEO, MD & Executive Director4.5yrsAU$4.37m0.26% A$12.4m
Brendan Gill
Chief Financial Officer5.4yrsAU$1.50m0.027% A$1.3m
Frank Sufferini
Head of Investor Relations & Corporate Affairs8.3yrsno datano data
Daniel J. Last
General Counsel & Company Secretary5.9yrsno datano data
Johanna Birgersson
Executive General Manager of Human Resources4.2yrsno datano data

5.4yrs

Average Tenure

Experienced Management: CWY's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vikas Bansal
CEO, MD & Executive Director4.5yrsAU$4.37m0.26% A$12.4m
Richard Harding
Independent Non-Executive Director6.9yrsAU$174.50k0.0014% A$67.8k
Raymond Smith
Independent Non-Executive Director8.8yrsAU$185.00k0.0060% A$282.0k
Mark Chellew
Independent Non-Executive Chairman3.4yrsAU$330.00k0.0076% A$356.9k
Emma Stein
Independent Non-Executive Director8.5yrsAU$164.00k0.0061% A$286.7k
Philippe Etienne
Independent Non-Executive Director5.8yrsAU$174.50k0.0040% A$188.5k
Terry Sinclair
Independent Non-Executive Director7.8yrsAU$164.00k0.0024% A$112.7k
Samantha Hogg
Independent Non-Executive Director0.3yrsno datano data

6.3yrs

Average Tenure

63yo

Average Age

Experienced Board: CWY's board of directors are considered experienced (6.3 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$4.677b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWYASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2005
TSPC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2005
TG9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2005
CWYCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2005
CWYCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 10:36
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.