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Market Cap

US$3.5b

Last Updated

2021/05/06 23:30 UTC

Data Sources

Company Financials +

Executive Summary

Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically integrated solid waste services company in the northeastern United States. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Casella Waste Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CWST is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CWST's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

CWST

1.2%

US Commercial Services

-1.7%

US Market


1 Year Return

42.6%

CWST

46.9%

US Commercial Services

51.8%

US Market

Return vs Industry: CWST underperformed the US Commercial Services industry which returned 50.8% over the past year.

Return vs Market: CWST underperformed the US Market which returned 52.8% over the past year.


Shareholder returns

CWSTIndustryMarket
7 Day0.4%1.2%-1.7%
30 Day3.1%5.8%1.5%
90 Day15.2%10.5%3.1%
1 Year42.6%42.6%48.7%46.9%54.4%51.8%
3 Year175.1%175.1%61.2%50.7%63.0%52.8%
5 Year844.1%844.1%128.6%104.3%127.2%101.9%

Long-Term Price Volatility Vs. Market

How volatile is Casella Waste Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Casella Waste Systems undervalued compared to its fair value and its price relative to the market?

35.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CWST ($67.41) is trading above our estimate of fair value ($50.55)

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


Price To Earnings Ratio

PE vs Industry: CWST is good value based on its PE Ratio (35.4x) compared to the US Commercial Services industry average (35.7x).

PE vs Market: CWST is poor value based on its PE Ratio (35.4x) compared to the US market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: CWST's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CWST is overvalued based on its PB Ratio (9.3x) compared to the US Commercial Services industry average (2.5x).


Future Growth

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

-7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWST's earnings are forecast to decline over the next 3 years (-7.7% per year).

Earnings vs Market: CWST's earnings are forecast to decline over the next 3 years (-7.7% per year).

High Growth Earnings: CWST's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CWST's revenue (8.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CWST's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CWST's Return on Equity is forecast to be low in 3 years time (10.9%).


Past Performance

How has Casella Waste Systems performed over the past 5 years?

63.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWST has high quality earnings.

Growing Profit Margin: CWST's current net profit margins (12.1%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: CWST has become profitable over the past 5 years, growing earnings by 63.3% per year.

Accelerating Growth: CWST's earnings growth over the past year (175.2%) exceeds its 5-year average (63.3% per year).

Earnings vs Industry: CWST earnings growth over the past year (175.2%) exceeded the Commercial Services industry -7.6%.


Return on Equity

High ROE: Whilst CWST's Return on Equity (25.3%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Casella Waste Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CWST's short term assets ($239.5M) exceed its short term liabilities ($123.1M).

Long Term Liabilities: CWST's short term assets ($239.5M) do not cover its long term liabilities ($697.8M).


Debt to Equity History and Analysis

Debt Level: CWST's debt to equity ratio (138.3%) is considered high.

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

Debt Coverage: CWST's debt is well covered by operating cash flow (30.5%).

Interest Coverage: CWST's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Dividend

What is Casella Waste Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CWST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CWST's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CWST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CWST's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CWST's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

10.3yrs

Average management tenure


CEO

John Casella (69 yo)

28.33yrs

Tenure

US$3,794,238

Compensation

Mr. John W. Casella has been the Chief Executive Officer of Casella Waste Systems, Inc. since 1993 and also serves as its Secretary. Mr. Casella has been Chief Executive Officer of Casella Waste Management...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD3.79M) is about average for companies of similar size in the US market ($USD5.40M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CWST's management team is seasoned and experienced (10.3 years average tenure).


Board Members

Experienced Board: CWST's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CWST insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.


Top Shareholders

Company Information

Casella Waste Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Casella Waste Systems, Inc.
  • Ticker: CWST
  • Exchange: NasdaqGS
  • Founded: 1975
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$3.456b
  • Shares outstanding: 51.36m
  • Website: https://www.casella.com

Number of Employees


Location

  • Casella Waste Systems, Inc.
  • 25 Green Hill Lane
  • Rutland
  • Vermont
  • 5701
  • United States

Listings


Biography

Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically integrated solid waste services company in the northeastern United States. It offers resource management services prima...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/06 23:30
End of Day Share Price2021/05/06 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.