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Casella Waste Systems

Nasdaq:CWST
Snowflake Description

Moderate growth potential with worrying balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CWST
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically-integrated solid waste services company in the northeastern United States. The last earnings update was 81 days ago. More info.


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CWST Share Price and Events
Price Volatility
CWST
Industry
5yr Volatility vs Market

Value

 Is Casella Waste Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Casella Waste Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Casella Waste Systems.

NasdaqGS:CWST Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CWST
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.591 (1 + (1- 21%) (45.86%))
0.805
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.805 * 7.05%)
8.62%

Discounted Cash Flow Calculation for NasdaqGS:CWST using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Casella Waste Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CWST DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 45.67 53.28 62.50 68.40 62.00
Source Analyst x3 Analyst x3 Analyst x1 Analyst x1 Analyst x1
Present Value
Discounted (@ 8.62%)
42.04 45.15 48.77 49.13 41.00
Present value of next 5 years cash flows $226
NasdaqGS:CWST DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $62 × (1 + 2.95%) ÷ (8.62% – 2.95%)
$1,125
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $1,125 ÷ (1 + 8.62%)5
$744
NasdaqGS:CWST Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $226 + $744
$970
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $970 / 43
$22.73
NasdaqGS:CWST Discount to Share Price
Calculation Result
Value per share (USD) From above. $22.73
Current discount Discount to share price of $25.54
= -1 x ($25.54 - $22.73) / $22.73
-12.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Casella Waste Systems is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Casella Waste Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Casella Waste Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CWST PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $-0.61
NasdaqGS:CWST Share Price ** NasdaqGS (2018-06-19) in USD $25.54
United States of America Commercial Services Industry PE Ratio Median Figure of 127 Publicly-Listed Commercial Services Companies 18.17x
United States of America Market PE Ratio Median Figure of 7,865 Publicly-Listed Companies 18.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Casella Waste Systems.

NasdaqGS:CWST PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CWST Share Price ÷ EPS (both in USD)

= 25.54 ÷ -0.61

-42.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Casella Waste Systems is loss making, we can't compare its value to the US Commercial Services industry average.
  • Casella Waste Systems is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Casella Waste Systems's expected growth come at a high price?
Raw Data
NasdaqGS:CWST PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -42.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
59.5%per year
United States of America Commercial Services Industry PEG Ratio Median Figure of 92 Publicly-Listed Commercial Services Companies 1.82x
United States of America Market PEG Ratio Median Figure of 5,963 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NasdaqGS:CWST PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= -42.13x ÷ 59.5%

-0.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Casella Waste Systems is loss making, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Casella Waste Systems's assets?
Raw Data
NasdaqGS:CWST PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $-0.91
NasdaqGS:CWST Share Price * NasdaqGS (2018-06-19) in USD $25.54
United States of America Commercial Services Industry PB Ratio Median Figure of 210 Publicly-Listed Commercial Services Companies 1.65x
United States of America Market PB Ratio Median Figure of 13,233 Publicly-Listed Companies 1.75x
NasdaqGS:CWST PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CWST Share Price ÷ Book Value per Share (both in USD)

= 25.54 ÷ -0.91

-28.09x

* Primary Listing of Casella Waste Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Casella Waste Systems has negative assets, we can't compare the value of its assets to the US Commercial Services industry average.
X
Value checks
We assess Casella Waste Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Casella Waste Systems has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Casella Waste Systems expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
59.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Casella Waste Systems expected to grow at an attractive rate?
  • Casella Waste Systems's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Casella Waste Systems's earnings growth is expected to exceed the United States of America market average.
  • Casella Waste Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CWST Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CWST Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 59.5%
NasdaqGS:CWST Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 5.9%
United States of America Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
United States of America Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CWST Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CWST Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 801 1
2021-12-31 756 1
2020-12-31 710 38 2
2019-12-31 658 119 37 4
2018-12-31 630 110 26 4
NasdaqGS:CWST Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 613 110 -25
2017-12-31 599 108 -22
2017-09-30 592 103 -54
2017-06-30 583 85 -58
2017-03-31 573 89 1
2016-12-31 565 80 -7
2016-09-30 561 86 -2
2016-06-30 556 82 -7
2016-03-31 555 78 -11
2015-12-31 547 71 -13
2015-09-30 567 61 4
2015-06-30 562 59 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Casella Waste Systems's earnings are expected to grow significantly at over 20% yearly.
  • Casella Waste Systems's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CWST Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Casella Waste Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CWST Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.91 0.91 0.91 1.00
2019-12-31 0.86 0.96 0.78 3.00
2018-12-31 0.60 0.63 0.57 3.00
NasdaqGS:CWST Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 -0.61
2017-12-31 -0.52
2017-09-30 -1.29
2017-06-30 -1.40
2017-03-31 0.01
2016-12-31 -0.17
2016-09-30 -0.05
2016-06-30 -0.17
2016-03-31 -0.28
2015-12-31 -0.32
2015-09-30 0.10
2015-06-30 0.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Casella Waste Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Casella Waste Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Casella Waste Systems has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Casella Waste Systems's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Casella Waste Systems does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Casella Waste Systems's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Casella Waste Systems's 1-year growth to the US Commercial Services industry average as it is not currently profitable.
Earnings and Revenue History
Casella Waste Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Casella Waste Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CWST Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 612.96 -25.49 81.43
2017-12-31 599.31 -21.80 79.24
2017-09-30 591.88 -53.79 78.29
2017-06-30 582.75 -58.34 76.32
2017-03-31 573.40 0.54 75.61
2016-12-31 565.03 -6.85 75.36
2016-09-30 561.26 -1.89 76.02
2016-06-30 556.31 -7.14 74.69
2016-03-31 555.36 -11.31 74.67
2015-12-31 546.50 -12.97 72.89
2015-09-30 566.64 4.02 71.73
2015-06-30 562.38 2.80 71.49
2015-03-31 555.94 -4.88 69.02
2014-12-31 552.56 -9.03 68.60
2014-10-31 519.51 -22.60 63.76
2014-07-31 510.46 -23.15 63.63
2014-04-30 497.63 -23.00 61.87
2014-01-31 487.40 -20.88 60.89
2013-12-31 510.10 -5.44 61.20
2013-10-31 481.72 -21.21 59.86
2013-07-31 466.26 -41.65 57.29
2013-04-30 455.34 -49.66 58.21
2013-01-31 442.95 -88.48 57.46
2012-10-31 445.37 -102.03 57.07
2012-07-31 458.40 -82.14 59.25
2012-04-30 467.95 -77.70 60.26
2012-01-31 481.19 -24.77 60.27
2011-10-31 478.24 -6.51 61.17
2011-07-31 471.27 -5.49 60.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Casella Waste Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if Casella Waste Systems has efficiently used its assets last year compared to the US Commercial Services industry average (Return on Assets) as it is loss-making.
  • Casella Waste Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Casella Waste Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Casella Waste Systems has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Casella Waste Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Casella Waste Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Casella Waste Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Casella Waste Systems's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Casella Waste Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Casella Waste Systems has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Casella Waste Systems Company Filings, last reported 2 months ago.

NasdaqGS:CWST Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 -38.82 499.97 2.50
2017-12-31 -37.86 482.63 2.00
2017-09-30 -60.50 484.76 2.30
2017-06-30 -74.63 502.98 2.69
2017-03-31 -23.18 508.87 2.23
2016-12-31 -24.55 508.65 2.54
2016-09-30 -13.91 500.60 3.56
2016-06-30 -22.19 503.22 2.38
2016-03-31 -28.52 514.68 1.65
2015-12-31 -21.60 507.43 2.31
2015-09-30 -15.56 531.75 2.02
2015-06-30 -18.85 528.29 3.16
2015-03-31 -20.86 546.90 3.06
2014-12-31 -12.02 535.71 2.21
2014-10-31 -6.66 523.78 2.73
2014-07-31 -7.62 512.07 2.60
2014-04-30 -8.54 508.02 2.46
2014-01-31 6.41 511.74 2.71
2013-12-31
2013-10-31 15.84 509.23 4.95
2013-07-31 15.86 499.15 2.92
2013-04-30 15.45 496.21 1.76
2013-01-31 26.94 493.58 1.11
2012-10-31 35.07 487.84 1.90
2012-07-31 9.56 490.81 3.51
2012-04-30 18.23 476.77 4.53
2012-01-31 66.36 474.29 1.13
2011-10-31 92.60 465.53 4.42
2011-07-31 91.81 469.40 2.90
  • Casella Waste Systems has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Casella Waste Systems's debt level has increased considering it has negative shareholder equity.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we analyse their runway based on operating expenses, which includes recurring G&A and R&D. Analysis based on the most recent financials.

  • Casella Waste Systems's cash level is insufficient to cover its current level of operating expenses for the upcoming year.
  • Casella Waste Systems's cash level is insufficient to cover its operating expenses for the upcoming year, if it continues to grow at historical rates of 6.9% each year.
X
Financial health checks
We assess Casella Waste Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Casella Waste Systems has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Casella Waste Systems dividends.
If you bought $2,000 of Casella Waste Systems shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Casella Waste Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Casella Waste Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CWST Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 102 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5932 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CWST Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00
2018-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Casella Waste Systems has not reported any payouts.
  • Unable to verify if Casella Waste Systems's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Casella Waste Systems's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Casella Waste Systems has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Casella Waste Systems's dividends in 3 years as they are not expected to pay a notable for United States of America.
X
Income/ dividend checks
We assess Casella Waste Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Casella Waste Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Casella Waste Systems has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Casella, image provided by Google.
John Casella
COMPENSATION $2,885,473
AGE 66
TENURE AS CEO 25.4 years
CEO Bio

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, Inc. since 1993. He served as President of Casella Waste Systems, Inc. from 1993 to July 2001 and served as its Chairman of the Board of Directors from 1993 to December 1999. Mr. Casella has been Chairman of the Board of Directors at Casella Waste Systems, Inc. since July 2001. He serves as the Chairman of The Rutland Hospital, Inc. He has been Chairman of the board of Directors of Casella Waste Management, Inc., a subsidiary of Casella Waste Systems, Inc. since 1977. Mr. Casella also serves as an Executive Officer and Director of Casella Construction, Inc., a company owned by Mr. Casella and Douglas R. Casella. He is a Member of numerous industry-related and community service-related state and local boards and commissions including the Board of Directors of the Associated Industries of Vermont, The Association of Vermont Recyclers, Vermont State Chamber of Commerce and the Rutland Industrial Development Corporation. He has been a Director of Casella Waste Systems, Inc. since 1993 and Casella Waste Management, Inc. since July 2001. He serves as a Director of National Recycling Coalition. He has also served on various state task forces, serving in an advisory capacity to the Governors of Vermont and New Hampshire on solid waste issues. Mr. Casella holds an Associate of Science in Business Management from Bryant & Stratton University and a Bachelor of Science in Business Education from Castleton State College. Mr. DesRoches is a graduate of Arizona State University.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year.
  • John's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Casella Waste Systems management team in years:

12.1
Average Tenure
61
Average Age
  • The average tenure for the Casella Waste Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Casella

TITLE
Chairman
COMPENSATION
$3M
AGE
66
TENURE
25.4 yrs

Edwin Johnson

TITLE
President & COO
COMPENSATION
$2M
AGE
60
TENURE
5.5 yrs

Ned Coletta

TITLE
Senior VP
COMPENSATION
$2M
AGE
41
TENURE
5.5 yrs

Christopher Heald

TITLE
VP of Finance & Chief Accounting Officer
COMPENSATION
$598K
AGE
52
TENURE
5.4 yrs

David Schmitt

TITLE
Senior VP & General Counsel
COMPENSATION
$912K
AGE
66
TENURE
12.1 yrs

Joseph Fusco

TITLE
Vice President of Communications
AGE
53
TENURE
23.4 yrs

Michael Viani

TITLE
Vice President of Business Development & Special Waste
AGE
62
TENURE
7.4 yrs

Gerald Gormley

TITLE
Vice President of Human Resources
AGE
68
TENURE
18.8 yrs

Ross Pirasteh

TITLE
Financial Consultant
AGE
79

Chris DesRoches

TITLE
Vice President of Customer Service
AGE
59
TENURE
13 yrs
Board of Directors Tenure

Average tenure and age of the Casella Waste Systems board of directors in years:

13.8
Average Tenure
66
Average Age
  • The average tenure for the Casella Waste Systems board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Douglas Casella

TITLE
Vice Chairman
AGE
61
TENURE
25.4 yrs

John Casella

TITLE
Chairman
COMPENSATION
$3M
AGE
66
TENURE
16.9 yrs

Gregory Peters

TITLE
Independent Director
COMPENSATION
$165K
AGE
71
TENURE
25.4 yrs

James Callahan

TITLE
Independent Director
COMPENSATION
$137K
AGE
73
TENURE
15.3 yrs

Joe Doody

TITLE
Independent Director
COMPENSATION
$130K
AGE
65
TENURE
13.8 yrs

Jim O'Connor

TITLE
Lead Independent Director
COMPENSATION
$195K
AGE
68
TENURE
2.7 yrs

Michael Burke

TITLE
Director
COMPENSATION
$120K
AGE
59
TENURE
10.3 yrs

Emily Nagle Green

TITLE
Director
COMPENSATION
$120K
AGE
59
TENURE
5.9 yrs

Bill Hulligan

TITLE
Independent Director
COMPENSATION
$120K
AGE
73
TENURE
2.8 yrs
Recent Insider Trading
  • Casella Waste Systems insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Casella Waste Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Casella Waste Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Casella Waste Systems Inc's (NASDAQ:CWST) Path To Profitability

Casella Waste Systems Inc's (NASDAQ:CWST):. … Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically-integrated solid waste services company in the northeastern United States. … The US$1.05b market-cap posted a loss in its most recent financial year of -US$21.80m and a latest trailing-twelve-month loss of -US$25.48m leading to an even wider gap between loss and breakeven.

Simply Wall St -

Casella Waste Systems Inc's (NASDAQ:CWST) Path To Profitability

Casella Waste Systems Inc's (NASDAQ:CWST): Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically-integrated solid waste services company in the northeastern United States. … See our latest analysis for Casella Waste Systems According to the industry analysts covering CWST, breakeven is near. … How fast will CWST have to grow each year in order to reach the breakeven point by 2018?

Simply Wall St -

Should You Buy Casella Waste Systems Inc (NASDAQ:CWST) At $23.7?

Casella Waste Systems Inc (NASDAQ:CWST), a commercial services company based in United States, saw a decent share price growth in the teens level on the NasdaqGS over the last few months. … According to my valuation model, Casella Waste Systems seems to be fairly priced at around 7% above my intrinsic value, which means if you buy Casella Waste Systems today, you’d be paying a relatively reasonable price for it. … Furthermore, Casella Waste Systems’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta.

Simply Wall St -

Is Casella Waste Systems Inc (NASDAQ:CWST) Expensive For A Reason? A Look At The Intrinsic Value

Today, I will calculate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $44.92 $46.98 $49.30 $55.50 $60.30 Source Analyst x3 Analyst x3 Analyst x1 Analyst x1 Analyst x1 Present Value Discounted @ 8.49% $41.40 $39.91 $38.60 $40.06 $40.11 Present Value of 5-year Cash Flow (PVCF)= $200 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $60 × (1 + 2.5%) ÷ (8.5% – 2.5%) = $1,026 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $1,026 / ( 1 + 8.5%)5 = $682 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $882.

Simply Wall St -

Is Casella Waste Systems Inc's (NASDAQ:CWST) CEO Salary Justified?

Check out our latest analysis for Casella Waste Systems What has CWST performance been like? … Typically I would use earnings and market cap to account for variations in performance, however, CWST's negative earnings lower the usefulness of my formula. … My analysis shows that Casella may be paid above the appropriate level, based on the size of CWST and its recent year's earnings performance.

Simply Wall St -

An Intrinsic Value Calculation For Casella Waste Systems Inc (CWST) Shows Investors Are Overpaying

5-year cash flow forecast 2017 2018 2019 2020 2021 Levered FCF (USD, Millions) $36.68 $41.90 $53.10 $52.80 $59.80 Source Analyst x4 Analyst x4 Analyst x2 Analyst x1 Analyst x1 Present Value Discounted @ 10.84% $33.09 $34.10 $38.99 $34.98 $35.74 Present Value of 5-year Cash Flow (PVCF)= $177 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2021 × (1 + g) ÷ (r – g) = $60 × (1 + 2.5%) ÷ (10.8% – 2.5%) = $732 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $732 / ( 1 + 10.8%)5 = $437 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $614. … NasdaqGS:CWST Intrinsic Value Nov 18th 17 Important assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Is It Time To Buy Casella Waste Systems Inc (CWST)?

Casella Waste Systems Inc (NASDAQ:CWST), a commercial services and supplies company based in United States, saw a decent share price growth in the teens level on the NasdaqGS over the last few months. … This means that the opportunity to buy CWST at a good price has disappeared! … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at CWST future expectations.

Simply Wall St -

Company Info

Map
Description

Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically-integrated solid waste services company in the northeastern United States. The company operates through Eastern Region, Western Region, Recycling, and Other segments. It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, and industrial customers. The company provides a range of non-hazardous solid waste services, including collections, transfer stations, material recovery facilities, and disposal facilities. It also processes and markets recyclable metals, aluminum, plastics, and paper and corrugated cardboard, as well as recyclables purchased from third-parties. In addition, the company is involved in commodity brokerage operations. As of January 31, 2018, it owned and/or operated 32 solid waste collection operations, 47 transfer stations, 18 recycling facilities, 9 Subtitle D landfills, 4 landfill gas-to-energy facilities, and 1 landfill permitted to accept construction and demolition materials. Casella Waste Systems, Inc. was founded in 1975 and is headquartered in Rutland, Vermont.

Details
Name: Casella Waste Systems, Inc.
CWST
Exchange: NasdaqGS
Founded: 1975
$1,090,259,667
42,688,319
Website: http://www.casella.com
Address: Casella Waste Systems, Inc.
25 Greens Hill Lane,
Rutland,
Vermont, 05701,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CWST Class A Common Stock Nasdaq Global Select US USD 29. Oct 1997
DB WA3 Class A Common Stock Deutsche Boerse AG DE EUR 29. Oct 1997
Number of employees
Current staff
Staff numbers
2,000
Casella Waste Systems employees.
Industry
Environmental and Facilities Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/06/20 21:22
End of day share price update: 2018/06/19 00:00
Last estimates confirmation: 2018/06/13
Last earnings update: 2018/03/31
Last annual earnings update: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.