DB:TG9

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 acceptable track record.


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

4.2%

TG9

0.3%

DE Commercial Services

1.4%

DE Market


1 Year Return

18.1%

TG9

-14.8%

DE Commercial Services

3.8%

DE Market

Return vs Industry: TG9 exceeded the German Commercial Services industry which returned -14.8% over the past year.

Return vs Market: TG9 exceeded the German Market which returned 3.8% over the past year.


Shareholder returns

TG9IndustryMarket
7 Day4.2%0.3%1.4%
30 Day3.7%-0.5%1.3%
90 Day-18.2%-0.5%3.1%
1 Year20.1%18.1%-11.7%-14.8%7.0%3.8%
3 Year60.9%50.7%3.1%-5.7%18.5%8.3%
5 Year136.2%112.0%-4.1%-17.6%42.2%22.9%

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

No news available

Valuation

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

34.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TG9 (€1.24) is trading above our estimate of fair value (€0.83)

Significantly Below Fair Value: TG9 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TG9 is poor value based on its PE Ratio (34.3x) compared to the Commercial Services industry average (16.4x).

PE vs Market: TG9 is poor value based on its PE Ratio (34.3x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: TG9 is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: TG9 is good value based on its PB Ratio (1.6x) compared to the DE Commercial Services industry average (2.7x).


Next Steps

Future Growth

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

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TG9's forecast earnings growth (12.4% per year) is above the savings rate (0.2%).

Earnings vs Market: TG9's earnings (12.4% per year) are forecast to grow slower than the German market (12.6% per year).

High Growth Earnings: TG9's earnings are forecast to grow, but not significantly.

Revenue vs Market: TG9's revenue (3.6% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: TG9'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: TG9's Return on Equity is forecast to be low in 3 years time (7.1%).


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

Earnings Trend: TG9 has become profitable over the past 5 years, growing earnings by 68.2% per year.

Accelerating Growth: TG9's earnings growth over the past year (18.9%) is below its 5-year average (68.2% per year).

Earnings vs Industry: TG9 earnings growth over the past year (18.9%) exceeded the Commercial Services industry 6.5%.


Return on Equity

High ROE: TG9's Return on Equity (4.8%) is considered low.


Return on Assets

ROA vs Industry: TG9's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: TG9 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Cleanaway Waste Management's financial position?


Financial Position Analysis

Short Term Liabilities: TG9's short term assets (A$488.5M) exceeds its short term liabilities (A$477.5M)

Long Term Liabilities: TG9's short term assets (488.5M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: TG9's debt to equity ratio (22.5%) is considered satisfactory

Reducing Debt: TG9 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: TG9's debt is well covered by operating cash flow (60.5%).

Interest Coverage: TG9's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: TG9 has a high level of physical assets or inventory.

Debt Coverage by Assets: TG9's 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?

1.84%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TG9's dividend (1.84%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: TG9's dividend (1.84%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: Whilst dividend payments have been stable, TG9 has been paying a dividend for less than 10 years.

Growing Dividend: TG9's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), TG9's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TG9's dividends in 3 years are forecast to be covered by earnings (53.6% payout ratio).


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?

5.1yrs

Average management tenure


CEO

Vik Bansal 0

4.2yrs

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 ($USD2.99M) is about average for companies of similar size in the German market ($USD2.80M).

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


Management Age and Tenure

5.1yrs

Average Tenure

Experienced Management: TG9's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

64yo

Average Age

Experienced Board: TG9's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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Ownership Breakdown


Management Team

  • Vik Bansal

    CEO, MD & Executive Director

    • Tenure: 4.2yrs
    • Compensation: AU$4.37m
  • Brendan Gill

    Chief Financial Officer

    • Tenure: 5.1yrs
    • Compensation: AU$1.50m
  • Frank Sufferini

    Head of Investor Relations & Corporate Affairs

    • Tenure: 8yrs
  • Dan Last

    General Counsel & Company Secretary

    • Tenure: 5.6yrs
  • Johanna Birgersson

    Executive General Manager of Human Resources

    • Tenure: 3.8yrs

Board Members

  • Mike Harding (70yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: AU$174.50k
  • Ray Smith (72yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$185.00k
  • Mark Chellew (62yo)

    Independent Non-Executive Chairman

    • Tenure: 3.1yrs
    • Compensation: AU$330.00k
  • Emma Stein (58yo)

    Independent Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: AU$164.00k
  • Philippe Etienne (64yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$174.50k
  • Terry Sinclair

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: AU$164.00k
  • Vik Bansal

    CEO, MD & Executive Director

    • Tenure: 4.2yrs
    • 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: TG9
  • Exchange: DB
  • Founded: 2002
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: AU$4.246b
  • Listing Market Cap: AU$2.610b
  • 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 Analysis2019/10/21 21:11
End of Day Share Price2019/10/21 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.