Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in the United States and Canada.
+ 1 more risk
Slightly overvalued unattractive dividend payer.
Share Price & News
How has Covanta Holding's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: C3K has not had significant price volatility in the past 3 months.
7 Day Return
DE Commercial Services
1 Year Return
DE Commercial Services
Return vs Industry: C3K exceeded the German Commercial Services industry which returned -4.3% over the past year.
Return vs Market: C3K underperformed the German Market which returned 14.1% over the past year.
Price Volatility Vs. Market
How volatile is Covanta Holding's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Covanta Holding undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: C3K (€14.5) is trading below our estimate of fair value (€19.07)
Significantly Below Fair Value: C3K is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: C3K is poor value based on its PE Ratio (291.6x) compared to the Commercial Services industry average (31.6x).
PE vs Market: C3K is poor value based on its PE Ratio (291.6x) compared to the German market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: C3K's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: C3K is overvalued based on its PB Ratio (5.4x) compared to the DE Commercial Services industry average (3.3x).
How is Covanta Holding forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: C3K's earnings are forecast to decline over the next 3 years (-54.5% per year).
Earnings vs Market: C3K's earnings are forecast to decline over the next 3 years (-54.5% per year).
High Growth Earnings: C3K's earnings are forecast to decline over the next 3 years.
Revenue vs Market: C3K's revenue (3% per year) is forecast to grow slower than the German market (5% per year).
High Growth Revenue: C3K's revenue (3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if C3K's Return on Equity is forecast to be high in 3 years time
How has Covanta Holding performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: C3K has a large one-off gain of $56.0M impacting its September 30 2019 financial results.
Growing Profit Margin: C3K's current net profit margins (0.4%) are lower than last year (14.7%).
Past Earnings Growth Analysis
Earnings Trend: C3K's earnings have grown significantly by 28.9% per year over the past 5 years.
Accelerating Growth: C3K's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: C3K had negative earnings growth (-97.4%) over the past year, making it difficult to compare to the Commercial Services industry average (10.8%).
Return on Equity
High ROE: C3K's Return on Equity (1.9%) is considered low.
Return on Assets
Return on Capital Employed
How is Covanta Holding's financial position?
Financial Position Analysis
Short Term Liabilities: C3K's short term assets ($475.0M) exceed its short term liabilities ($339.0M).
Long Term Liabilities: C3K's short term assets ($475.0M) do not cover its long term liabilities ($3.1B).
Debt to Equity History and Analysis
Debt Level: C3K's debt to equity ratio (667.9%) is considered high.
Reducing Debt: C3K's debt to equity ratio has increased from 274.5% to 667.9% over the past 5 years.
Debt Coverage: C3K's debt is not well covered by operating cash flow (8.1%).
Interest Coverage: C3K's interest payments on its debt are not well covered by EBIT (0.6x coverage).
Inventory Level: C3K has a high level of physical assets or inventory.
Debt Coverage by Assets: C3K's debt is not covered by short term assets (assets are 0.2x debt).
What is Covanta Holding's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: C3K's dividend (6.41%) is higher than the bottom 25% of dividend payers in the German market (1.31%).
High Dividend: C3K's dividend (6.41%) is in the top 25% of dividend payers in the German market (3.57%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, C3K has been paying a dividend for less than 10 years.
Growing Dividend: C3K's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (1867.9%), C3K's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: C3K is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Jones (58yo)
Mr. Stephen J. Jones, also known as Steve, has been the Chief Executive Officer and President of Covanta Holding Corporation since January 2015. Mr. Jones has been an Independent Director of Tronox Holding ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD4.64M) is above average for companies of similar size in the German market ($USD1.47M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||6.3yrs||US$2.14m||0.081% $1.5m|
|Executive VP||15.3yrs||US$1.54m||0.085% $1.6m|
|Executive Vice President of Asset Management||5.1yrs||US$1.94m||0.11% $2.1m|
|Executive Vice President of Supply Chain||4.6yrs||US$1.55m||0.069% $1.3m|
|VP & Chief Accounting Officer||2.9yrs||no data||0.016% $305.6k|
|Vice President of Investor Relations||0yrs||no data||no data|
|Executive VP & Head of Corporate Development||7.9yrs||US$1.21m||0.076% $1.4m|
|Senior VP & Chief Human Resources Officer||1.8yrs||no data||0.029% $549.8k|
|Senior VP & Chief Sustainability Officer||12.1yrs||no data||no data|
Experienced Management: C3K's management team is seasoned and experienced (5.1 years average tenure).
|Independent Director||23.8yrs||US$180.02k||0.076% $1.4m|
|Independent Director||15.6yrs||US$170.03k||0.057% $1.1m|
|Lead Director||0yrs||US$180.00k||0.077% $1.4m|
|Independent Director||16.2yrs||US$180.02k||0.078% $1.5m|
|Chairman of the Board||14.4yrs||US$600.04k||0.12% $2.4m|
|Independent Director||3.4yrs||US$185.02k||0.031% $578.3k|
|Independent Director||10.8yrs||US$180.02k||0.078% $1.5m|
|Independent Director||12.2yrs||US$170.00k||0.027% $502.3k|
|Independent Director||15.3yrs||US$170.00k||0.0050% $93.7k|
Experienced Board: C3K's board of directors are seasoned and experienced ( 14.4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Covanta Holding Corporation's company bio, employee growth, exchange listings and data sources
- Name: Covanta Holding Corporation
- Ticker: C3K
- Exchange: DB
- Founded: 1960
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Market Cap: US$2.040b
- Listing Market Cap: US$1.890b
- Shares outstanding: 130.71m
- Website: https://www.covanta.com
Number of Employees
- Covanta Holding Corporation
- 445 South Street
- New Jersey
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CVA||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Dec 1990|
|C3K||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Dec 1990|
Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in the United States and Canada. It owns and operates infrastructure for the conversion of waste to energy, as well as engages in related waste transport and disposal, and other renewable energy production businesses. The company disposes waste and generates electricity and/or steam; sells metal recovered during the energy-from-waste (EfW) process; and offers waste management solutions, such as site clean-up, wastewater treatment, pharmaceutical and healthcare solutions, transportation and logistics, recycling, and depackaging. It owns and operates 44 EfW facilities; 16 waste transfer stations, 20 material processing facilities, 4 landfills, and 1 regional metals recycling facility. Covanta Holding Corporation has a strategic partnership with the Green Investment Group Limited to develop, fund, and own EfW projects in Ireland and the United Kingdom. The company was formerly known as Danielson Holding Corporation and changed its name to Covanta Holding Corporation in September 2005. Covanta Holding Corporation was founded in 1960 and is headquartered in Morristown, New Jersey.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/19 22:22|
|End of Day Share Price||2020/02/19 00:00|
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.