Casella Waste Systems (NasdaqGS:CWST) - Share price, News & Analysis

CWST fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

CWST Stock Overview

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

Rewards

Earnings are forecast to grow 22.15% per year

Risk Analysis

Has a high level of debt

Profit margins (4.4%) are lower than last year (12.1%)

Significant insider selling over the past 3 months

Casella Waste Systems Competitors

Waste Management

NYSE:WM

US$65.3b

Republic Services

NYSE:RSG

US$41.8b

Waste Connections

NYSE:WCN

US$32.7b

Clean Harbors

NYSE:CLH

US$5.0b

Price History & Performance

Summary of all time highs, changes and price drops for Casella Waste Systems
Historical stock prices
Current Share Price	US$68.92
52 Week High	US$92.75
52 Week Low	US$62.47
Beta	1.02
1 Month Change	-21.93%
3 Month Change	-8.17%
1 Year Change	-0.25%
3 Year Change	78.00%
5 Year Change	406.02%
Change since IPO	209.75%

Recent News & Updates

May 17

Should You Think About Buying Casella Waste Systems, Inc. (NASDAQ:CWST) Now?

Casella Waste Systems, Inc. ( NASDAQ:CWST ), is not the largest company out there, but it received a lot of attention...

May 03

Casella Waste Systems - Collecting Garbage?

Casella has been a long-term value creator in the garbage collection and recycling market in the North Eastern parts of the U.S. I like the business and its track record, but valuations have gone a bit too far here. Despite Casella's continued bolt-on dealmaking and rosy future prospects, I am allocating resources elsewhere.

Shareholder Returns

	CWST	US Commercial Services	US Market
7D	0.4%	-0.2%	0.5%
1Y	-0.2%	-5.7%	-11.5%

Return vs Industry: CWST exceeded the US Commercial Services industry which returned -5.7% over the past year.

Return vs Market: CWST exceeded the US Market which returned -11.5% over the past year.

Price Volatility

Is CWST's price volatile compared to industry and market?
CWST volatility
CWST Average Weekly Movement	4.7%
Commercial Services Industry Average Movement	7.7%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: CWST is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CWST's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1975	2,900	John Casella	https://www.casella.com

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 primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers. The company provides a range of non-hazardous solid waste services, including collections, transfer stations, and disposal facilities.

Casella Waste Systems Fundamentals Summary

How do Casella Waste Systems's earnings and revenue compare to its market cap?
CWST fundamental statistics
Market Cap	US$3.54b
Earnings (TTM)	US$40.98m
Revenue (TTM)	US$933.71m

86.8x

P/E Ratio

3.8x

P/S Ratio

Is CWST overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CWST income statement (TTM)
Revenue	US$933.71m
Cost of Revenue	US$617.72m
Gross Profit	US$315.99m
Other Expenses	US$275.01m
Earnings	US$40.98m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.79
Gross Margin	33.84%
Net Profit Margin	4.39%
Debt/Equity Ratio	121.1%

How did CWST perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

86.85x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: CWST ($68.92) is trading above our estimate of fair value ($59.7)

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 (86.8x) compared to the US Commercial Services industry average (22.3x).

PE vs Market: CWST is poor value based on its PE Ratio (86.8x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: CWST is poor value based on its PEG Ratio (3.9x)

Price to Book Ratio

PB vs Industry: CWST is overvalued based on its PB Ratio (8.2x) compared to the US Commercial Services industry average (1.7x).

Future Growth

How is Casella Waste Systems forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWST's forecast earnings growth (22.1% per year) is above the savings rate (1.9%).

Earnings vs Market: CWST's earnings (22.1% per year) are forecast to grow faster than the US market (12.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CWST's revenue (8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: CWST's revenue (8% 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 (12.4%).

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

56.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CWST has high quality earnings.

Growing Profit Margin: CWST's current net profit margins (4.4%) are lower than last year (12.1%).

Past Earnings Growth Analysis

Earnings Trend: CWST has become profitable over the past 5 years, growing earnings by 56.1% per year.

Accelerating Growth: CWST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CWST had negative earnings growth (-56.6%) over the past year, making it difficult to compare to the Commercial Services industry average (33.4%).

Return on Equity

High ROE: CWST's Return on Equity (9.4%) is considered low.

Financial Health

How is Casella Waste Systems's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CWST's short term assets ($134.0M) do not cover its short term liabilities ($143.5M).

Long Term Liabilities: CWST's short term assets ($134.0M) do not cover its long term liabilities ($728.4M).

Debt to Equity History and Analysis

Debt Level: CWST's net debt to equity ratio (118%) 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 (33.3%).

Interest Coverage: CWST's interest payments on its debt are well covered by EBIT (4.1x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CWST has not reported any payouts.

Discover strong dividend paying companies

Management

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

6.4yrs

Average management tenure

CEO

John Casella (70 yo)

29.33yrs

Tenure

US$4,233,954

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 ($USD4.23M) is below average for companies of similar size in the US market ($USD6.81M).

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

Leadership Team

Experienced Management: CWST's management team is seasoned and experienced (6.4 years average tenure).

Board Members

Experienced Board: CWST's board of directors are considered experienced (9.8 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31