NYSE:CVA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in the United States and Canada. More Details


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

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 +/- 8% a week.

Volatility Over Time: CVA's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

CVA

-0.9%

US Commercial Services

0.6%

US Market


1 Year Return

-13.5%

CVA

13.3%

US Commercial Services

22.7%

US Market

Return vs Industry: CVA underperformed the US Commercial Services industry which returned 12.5% over the past year.

Return vs Market: CVA underperformed the US Market which returned 21% over the past year.


Shareholder returns

CVAIndustryMarket
7 Day-0.3%-0.9%0.6%
30 Day39.4%10.9%13.1%
90 Day34.1%4.8%4.5%
1 Year-7.7%-13.5%15.1%13.3%25.5%22.7%
3 Year2.9%-14.7%54.5%44.7%49.0%39.1%
5 Year15.9%-15.7%124.9%102.3%98.3%76.5%

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

Valuation

Is Covanta Holding undervalued compared to its fair value and its price relative to the market?

5.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVA ($12.66) is trading below our estimate of fair value ($13.35)

Significantly Below Fair Value: CVA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CVA is unprofitable, so we can't compare its PE Ratio to the US Commercial Services industry average.

PE vs Market: CVA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CVA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CVA is overvalued based on its PB Ratio (5.9x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is Covanta Holding forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

91.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: CVA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CVA's is expected to become profitable in the next 3 years.

Revenue vs Market: CVA's revenue (2.1% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: CVA's revenue (2.1% 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 (4%).


Next Steps

Past Performance

How has Covanta Holding performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVA is currently unprofitable.

Growing Profit Margin: CVA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CVA is unprofitable, and losses have increased over the past 5 years at a rate of 6.9% per year.

Accelerating Growth: Unable to compare CVA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CVA is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-5.9%).


Return on Equity

High ROE: CVA has a negative Return on Equity (-9.86%), as it is currently unprofitable.


Next Steps

Financial Health

How is Covanta Holding's financial position?


Financial Position Analysis

Short Term Liabilities: CVA's short term assets ($386.0M) exceed its short term liabilities ($347.0M).

Long Term Liabilities: CVA's short term assets ($386.0M) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: CVA's debt to equity ratio (874.6%) is considered high.

Reducing Debt: CVA's debt to equity ratio has increased from 378.3% to 874.6% over the past 5 years.

Debt Coverage: CVA's debt is not well covered by operating cash flow (12.3%).

Interest Coverage: CVA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Covanta Holding current dividend yield, its reliability and sustainability?

2.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CVA's dividend (2.53%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: CVA's dividend (2.53%) is low compared to the top 25% of dividend payers in the US market (4.18%).


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: CVA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CVA's dividends in 3 years are not forecast to be well covered by earnings (317.6% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Mike Ranger (62 yo)

0.083

Tenure

US$206,253

Compensation

Mr. Michael William Ranger, also known as Mike, serves as the President, Chief Executive Officer and Director at Covanta Holding Corporation since October 2020. He co-founded Diamond Castle Holdings, LLC i...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Ranger
President0.083yrUS$206.25k0.030%
$ 506.4k
Bradford Helgeson
Executive VP & CFO7yrsUS$1.72m0.11%
$ 1.8m
Derek Veenhof
Executive VP & COO0.083yrUS$1.56m0.13%
$ 2.2m
Timothy Simpson
Executive VP & Chief Administrative Officer0.83yrUS$1.45m0.10%
$ 1.7m
Joseph Schantz
Chief Accounting Officer & VP0.58yrno data0.014%
$ 240.3k
Daniel Mannes
Vice President of Investor Relationsno datano datano data
Thomas Kenyon
Executive VP0.67yrno data0.031%
$ 520.2k
Matthew Mulcahy
Executive VP & Head of Corporate Development8.67yrsUS$1.21m0.089%
$ 1.5m
Virginia Angilello
Senior VP & Chief Human Resources Officer2.58yrsno data0.035%
$ 589.4k
Paul Gilman
Senior VP & Chief Sustainability Officer12.83yrsno datano data
Paul Stauder
Senior VP & President of Covanta Environmental Solutions4.92yrsno data0.047%
$ 791.9k

1.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CVA's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Ranger
President0.083yrUS$206.25k0.030%
$ 506.4k
David Barse
Independent Director24.5yrsUS$201.25k0.075%
$ 1.3m
Peter C. Bynoe
Independent Director16.33yrsUS$191.25k0.057%
$ 951.0k
Robert Silberman
Independent Lead Directorno dataUS$242.50k0.091%
$ 1.5m
Jean Smith
Independent Director16.92yrsUS$201.25k0.087%
$ 1.5m
Samuel Zell
Independent Chairman of the Board15.17yrsUS$600.01k0.12%
$ 2.1m
Joseph Holsten
Independent Director11.5yrsUS$201.25k0.080%
$ 1.3m
Linda Fisher
Independent Director12.92yrsUS$191.25k0.026%
$ 439.8k
Ronald Broglio
Independent Director16.08yrsUS$191.25k0.010%
$ 171.8k
Owen Michaelson
Independent Director2.17yrsUS$191.25kno data
Danielle Pletka
Independent Director4.17yrsUS$191.25kno data

14.0yrs

Average Tenure

64yo

Average Age

Experienced Board: CVA's board of directors are seasoned and experienced ( 14 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CVA 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.


Top Shareholders

Company Information

Covanta Holding Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Covanta Holding Corporation
  • Ticker: CVA
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$1.668b
  • Shares outstanding: 131.74m
  • Website: https://www.covanta.com

Number of Employees


Location

  • Covanta Holding Corporation
  • 445 South Street
  • Morristown
  • New Jersey
  • 7960
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVANYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1990
C3KDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1990

Biography

Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in the United States and Canada. It owns and operates infrastructure for the conver...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:02
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.