ASX:CWY

Stock Analysis Report

Cleanaway Waste Management

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.

Risks

  • Cleanaway Waste Management has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-2.2%

ASX:CWY

0.5%

AU Commercial Services

1.2%

AU Market


1 Year Return

6.1%

ASX:CWY

3.1%

AU Commercial Services

6.9%

AU Market

CWY outperformed the Commercial Services industry which returned 3.1% over the past year.

CWY matched the Australia Market (6.9%) over the past year.


Share holder returns

CWYIndustryMarket
7 Day-2.2%0.5%1.2%
30 Day-7.2%-4.5%4.9%
90 Day-16.5%-6.5%1.2%
1 Year7.9%6.1%6.0%3.1%13.1%6.9%
3 Year96.2%83.9%23.5%13.1%41.8%22.7%
5 Year164.1%137.5%61.7%39.5%48.2%15.7%

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 based on future cash flows and its price relative to the stock market?

33.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cleanaway Waste Management's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cleanaway Waste Management's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Cleanaway Waste Management is overvalued based on earnings compared to the AU Commercial Services industry average.

Cleanaway Waste Management is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Cleanaway Waste Management is poor value based on expected growth next year.


Price Based on Value of Assets

Cleanaway Waste Management is good value based on assets compared to the AU Commercial Services industry average.


Next Steps

Future Growth

How is Cleanaway Waste Management expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cleanaway Waste Management's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Cleanaway Waste Management's earnings are expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).

Cleanaway Waste Management's revenue growth is expected to exceed the Australia market average.

Cleanaway Waste Management's earnings growth is expected to exceed the Australia market average.

Cleanaway Waste Management's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Cleanaway Waste Management is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

68.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cleanaway Waste Management has delivered over 20% year on year earnings growth in the past 5 years.

Cleanaway Waste Management's 1-year earnings growth is less than its 5-year average (18.9% vs 68.2%)

Cleanaway Waste Management's earnings growth has not exceeded the AU Commercial Services industry average in the past year (18.9% vs 20.4%).


Return on Equity

Cleanaway Waste Management has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cleanaway Waste Management used its assets less efficiently than the AU Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Cleanaway Waste Management has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cleanaway Waste Management's financial position?


Financial Position Analysis

Cleanaway Waste Management is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cleanaway Waste Management's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Cleanaway Waste Management's level of debt (22.5%) compared to net worth is satisfactory (less than 40%).

Cleanaway Waste Management had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (60.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

2.35%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Cleanaway Waste Management's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.46%).

Cleanaway Waste Management's dividend is below the markets top 25% of dividend payers in Australia (5.55%).

Whilst dividend payments have been stable, Cleanaway Waste Management has been paying a dividend for less than 10 years.

Dividend payments have increased, but Cleanaway Waste Management only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of Cleanaway Waste Management's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Vik Bansal 0

4.1yrs

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

Vik's remuneration is higher than average for companies of similar size in Australia.

Vik's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.0yrs

Average Tenure

The average tenure for the Cleanaway Waste Management management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.5yrs

Average Tenure

64yo

Average Age

The tenure for the Cleanaway Waste Management board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellAU$34,542,40206 Sep 19
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BuyAU$66,082,64503 Jun 19
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BuyAU$203,23003 Jun 19
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BuyAU$009 Apr 19
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BuyAU$61,17525 Mar 19
Mark Chellew
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares29,000
Max PriceAU$2.11
BuyAU$21,40019 Mar 19
Raymond Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$2.14
SellAU$37,490,15306 Mar 19
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Shares17,939,435
Max PriceAU$2.09
BuyAU$3,059,90406 Mar 19
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Shares1,817,662
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SellAU$7,651,49618 Feb 19
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Max PriceAU$1.90
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BuyAU$268,24007 Jan 19
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BuyAU$10,119,47120 Dec 18
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BuyAU$4,102,55120 Sep 18
Marathon Asset Management, LLP
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Ownership Breakdown


Management Team

  • Vik Bansal

    CEO, MD & Executive Director

    • Tenure: 4.1yrs
    • Compensation: AU$4.37m
  • Brendan Gill

    Chief Financial Officer

    • Tenure: 5yrs
    • Compensation: AU$1.50m
  • Frank Sufferini

    Head of Investor Relations & Corporate Affairs

    • Tenure: 7.9yrs
  • Dan Last

    General Counsel & Company Secretary

    • Tenure: 5.5yrs
  • Johanna Birgersson

    Executive General Manager of Human Resources

    • Tenure: 3.8yrs

Board Members

  • Mike Harding (70yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: AU$174.50k
  • Ray Smith (72yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: AU$185.00k
  • Mark Chellew (62yo)

    Independent Non-Executive Chairman

    • Tenure: 3yrs
    • Compensation: AU$330.00k
  • Emma Stein (58yo)

    Independent Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: AU$164.00k
  • Philippe Etienne (64yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$174.50k
  • Terry Sinclair

    Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: AU$164.00k
  • Vik Bansal

    CEO, MD & Executive Director

    • Tenure: 4.1yrs
    • Compensation: AU$4.37m

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$4.139b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 10:34
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
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.