Casella Waste Systems
Market Cap
US$3.0b
Last Updated
2021/01/22 23:58 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
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with moderate growth potential.
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 +/- 4% a week.
Volatility Over Time: CWST's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
8.3%
CWST
0.9%
US Commercial Services
2.3%
US Market
1 Year Return
20.0%
CWST
6.6%
US Commercial Services
23.7%
US Market
Return vs Industry: CWST exceeded the US Commercial Services industry which returned 6.6% over the past year.
Return vs Market: CWST underperformed the US Market which returned 23.7% over the past year.
Shareholder returns
| CWST | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.3% | 0.9% | 2.3% |
| 30 Day | -3.2% | 0.4% | 4.7% |
| 90 Day | 2.6% | 4.3% | 14.5% |
| 1 Year | 20.0%20.0% | 8.1%6.6% | 26.5%23.7% |
| 3 Year | 131.1%131.1% | 39.5%29.8% | 45.0%35.4% |
| 5 Year | 903.5%903.5% | 129.1%105.2% | 126.2%100.9% |
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
1 week ago | Simply Wall St
Casella Waste Systems (NASDAQ:CWST) Seems To Use Debt Quite Sensibly2 weeks ago | Simply Wall St
Is Casella Waste Systems, Inc.'s (NASDAQ:CWST) 25% ROE Better Than Average?1 month ago | Simply Wall St
Are Casella Waste Systems's (NASDAQ:CWST) Statutory Earnings A Good Reflection Of Its Earnings Potential?Valuation
Is Casella Waste Systems undervalued compared to its fair value and its price relative to the market?
77.15x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CWST ($59.71) is trading above our estimate of fair value ($47.87)
Significantly Below Fair Value: CWST is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CWST is poor value based on its PE Ratio (77.1x) compared to the US Commercial Services industry average (24.4x).
PE vs Market: CWST is poor value based on its PE Ratio (77.1x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: CWST is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: CWST is overvalued based on its PB Ratio (19.5x) compared to the US Commercial Services industry average (2.3x).
Next Steps
Future Growth
How is Casella Waste Systems forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
27.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CWST's forecast earnings growth (27.1% per year) is above the savings rate (2%).
Earnings vs Market: CWST's earnings (27.1% per year) are forecast to grow faster than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CWST's revenue (8.1% per year) is forecast to grow slower than the US market (10.6% 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 (15%).
Next Steps
Past Performance
How has Casella Waste Systems performed over the past 5 years?
49.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CWST has high quality earnings.
Growing Profit Margin: CWST's current net profit margins (4.9%) are higher than last year (1.3%).
Past Earnings Growth Analysis
Earnings Trend: CWST has become profitable over the past 5 years, growing earnings by 49.3% per year.
Accelerating Growth: CWST's earnings growth over the past year (306.8%) exceeds its 5-year average (49.3% per year).
Earnings vs Industry: CWST earnings growth over the past year (306.8%) exceeded the Commercial Services industry -9%.
Return on Equity
High ROE: Whilst CWST's Return on Equity (25.17%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Casella Waste Systems's financial position?
Financial Position Analysis
Short Term Liabilities: CWST's short term assets ($115.7M) do not cover its short term liabilities ($137.5M).
Long Term Liabilities: CWST's short term assets ($115.7M) do not cover its long term liabilities ($708.7M).
Debt to Equity History and Analysis
Debt Level: CWST's debt to equity ratio (352.8%) 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 (30.1%).
Interest Coverage: CWST's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Balance Sheet
Next Steps
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?
12.8yrs
Average management tenure
CEO
John Casella (69 yo)
28yrs
Tenure
US$2,721,590
Compensation
Mr. John W. Casella has been the Chief Executive Officer of Casella Waste Systems, Inc. since 1993 and also serves as its Secretary. Mr. Casella has been Chief Executive Officer of Casella Waste Management...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD2.72M) is below average for companies of similar size in the US market ($USD5.01M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 28yrs | US$2.72m | 1.09% $ 33.4m | |
| President & COO | 8.08yrs | US$1.53m | 0.28% $ 8.5m | |
| Senior VP | 8.08yrs | US$1.49m | 0.26% $ 8.1m | |
| VP of Finance & Chief Accounting Officer | 8yrs | US$539.67k | 0.059% $ 1.8m | |
| Senior VP & General Counsel | no data | no data | 0.021% $ 627.0k | |
| Vice President of Communications | 26yrs | no data | no data | |
| Vice President of Business Development & Special Waste | 10yrs | no data | no data | |
| Vice President of Human Resources | 21.42yrs | no data | no data | |
| Vice President of Customer Service | 15.58yrs | no data | no data | |
| Director of Finance | no data | no data | no data |
12.8yrs
Average Tenure
62.5yo
Average Age
Experienced Management: CWST's management team is seasoned and experienced (12.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 28yrs | US$2.72m | 1.09% $ 33.4m | |
| Lead Independent Director | 1yr | US$180.00k | 0.060% $ 1.8m | |
| Vice Chairman | 28yrs | no data | 1.65% $ 50.3m | |
| Independent Director | 8.5yrs | US$182.50k | 0.055% $ 1.7m | |
| Lead Independent Director | 5.25yrs | US$210.00k | 0.030% $ 908.8k | |
| Independent Director | 5.33yrs | US$175.00k | 0.038% $ 1.2m | |
| Independent Director | 12.92yrs | US$180.00k | 0.042% $ 1.3m | |
| Independent Director | 17.83yrs | US$190.00k | 0.15% $ 4.7m | |
| Independent Director | 1.08yrs | US$53.04k | 0.0021% $ 64.3k | |
| Independent Director | 0.50yr | no data | 0.0018% $ 54.0k |
6.9yrs
Average Tenure
68yo
Average Age
Experienced Board: CWST's board of directors are considered experienced (6.9 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 6.9%.
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$3.050b
- Shares outstanding: 51.08m
- Website: https://www.casella.com
Number of Employees
Location
- Casella Waste Systems, Inc.
- 25 Green Hill Lane
- Rutland
- Vermont
- 5701
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CWST | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Oct 1997 |
| WA3 | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Oct 1997 |
Biography
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,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 23:58 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.