Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in the United States and internationally. More Details
Moderate growth potential second-rate dividend payer.
Share Price & News
How has Covanta Holding's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CVA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CVA's weekly volatility (6%) has been stable over the past year.
7 Day Return
US Commercial Services
1 Year Return
US Commercial Services
Return vs Industry: CVA exceeded the US Commercial Services industry which returned 35.8% over the past year.
Return vs Market: CVA exceeded the US Market which returned 38.2% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Covanta Holding's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall StIs It Too Late To Consider Buying Covanta Holding Corporation (NYSE:CVA)?
2 weeks ago | Simply Wall StThe Returns On Capital At Covanta Holding (NYSE:CVA) Don't Inspire Confidence
1 month ago | Simply Wall StRead This Before Judging Covanta Holding Corporation's (NYSE:CVA) ROE
Is Covanta Holding undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CVA ($16.95) is trading below our estimate of fair value ($26.36)
Significantly Below Fair Value: CVA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CVA is poor value based on its PE Ratio (373.6x) compared to the US Commercial Services industry average (33.3x).
PE vs Market: CVA is poor value based on its PE Ratio (373.6x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: CVA is poor value based on its PEG Ratio (12.3x)
Price to Book Ratio
PB vs Industry: CVA is overvalued based on its PB Ratio (7.8x) compared to the US Commercial Services industry average (2.4x).
How is Covanta Holding forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CVA's forecast earnings growth (30.5% per year) is above the savings rate (2%).
Earnings vs Market: CVA's earnings (30.5% per year) are forecast to grow faster than the US market (15.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CVA's revenue (2.6% per year) is forecast to grow slower than the US market (9.5% per year).
High Growth Revenue: CVA's revenue (2.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CVA's Return on Equity is forecast to be low in 3 years time (10.4%).
How has Covanta Holding performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CVA has a large one-off gain of $8.0M impacting its March 31 2021 financial results.
Growing Profit Margin: CVA became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CVA's earnings have declined by 19.3% per year over the past 5 years.
Accelerating Growth: CVA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: CVA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (3.2%).
Return on Equity
High ROE: CVA's Return on Equity (2.1%) is considered low.
How is Covanta Holding's financial position?
Financial Position Analysis
Short Term Liabilities: CVA's short term assets ($397.0M) exceed its short term liabilities ($374.0M).
Long Term Liabilities: CVA's short term assets ($397.0M) do not cover its long term liabilities ($3.0B).
Debt to Equity History and Analysis
Debt Level: CVA's debt to equity ratio (854.8%) is considered high.
Reducing Debt: CVA's debt to equity ratio has increased from 446.3% to 854.8% over the past 5 years.
Debt Coverage: CVA's debt is not well covered by operating cash flow (9.9%).
Interest Coverage: CVA's interest payments on its debt are not well covered by EBIT (0.7x coverage).
What is Covanta Holding current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CVA's dividend (1.89%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: CVA's dividend (1.89%) is low compared to the top 25% of dividend payers in the US market (3.49%).
Stability and Growth of Payments
Stable Dividend: CVA's dividends per share have been stable in the past 10 years.
Growing Dividend: CVA's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (705.3%), CVA's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CVA's dividends in 3 years are not forecast to be well covered by earnings (115.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Ranger (62 yo)
Mr. Michael William Ranger, also known as Mike, serves as the President, Chief Executive Officer and Director at Covanta Holding Corporation since October 29, 2020. He co-founded Diamond Castle Holdings, L...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD1.72M) is below average for companies of similar size in the US market ($USD3.73M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Experienced Management: CVA's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Experienced Board: CVA's board of directors are seasoned and experienced ( 14.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Covanta Holding Corporation's company bio, employee growth, exchange listings and data sources
- Name: Covanta Holding Corporation
- Ticker: CVA
- Exchange: NYSE
- Founded: 1986
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Market Cap: US$2.291b
- Shares outstanding: 132.94m
- Website: https://www.covanta.com
Number of Employees
- Covanta Holding Corporation
- 445 South Street
- New Jersey
- United States
Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in the United States and internationally. It owns and operates infrastructure for t...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/22 00:23|
|End of Day Share Price||2021/06/21 00:00|
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.