Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in the United States and internationally. More Details
Second-rate dividend payer with moderate growth potential.
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 34% over the past year.
Return vs Market: CVA exceeded the US Market which returned 35.9% 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 weeks ago | Simply Wall StCovanta Holding (NYSE:CVA) Shareholders Have Enjoyed An Impressive 100% Share Price Gain
1 month ago | Simply Wall StIs It Too Late To Consider Buying Covanta Holding Corporation (NYSE:CVA)?
1 month ago | Simply Wall StThe Returns On Capital At Covanta Holding (NYSE:CVA) Don't Inspire Confidence
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 ($20.1) is trading below our estimate of fair value ($32.57)
Significantly Below Fair Value: CVA is trading below fair value by more than 20%.
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: CVA is unprofitable, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CVA is overvalued based on its PB Ratio (10.5x) compared to the US Commercial Services industry average (2.5x).
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 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (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 (2.7% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: CVA's revenue (2.7% 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 (11.7%).
How has Covanta Holding performed over the past 5 years?
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 22.1% 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 (11.3%).
Return on Equity
High ROE: CVA has a negative Return on Equity (0%), as it is currently unprofitable.
How is Covanta Holding's financial position?
Financial Position Analysis
Short Term Liabilities: CVA's short term assets ($389.0M) do not cover its short term liabilities ($422.0M).
Long Term Liabilities: CVA's short term assets ($389.0M) do not cover its long term liabilities ($3.0B).
Debt to Equity History and Analysis
Debt Level: CVA's debt to equity ratio (960.6%) is considered high.
Reducing Debt: CVA's debt to equity ratio has increased from 553.9% to 960.6% over the past 5 years.
Debt Coverage: CVA's debt is not well covered by operating cash flow (10.5%).
Interest Coverage: CVA's interest payments on its debt are not well covered by EBIT (0.8x coverage).
What is Covanta Holding current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CVA's dividend (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: CVA's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (3.54%).
Stability and Growth of Payments
Stable Dividend: CVA's dividends per share have been stable in the past 10 years.
Growing Dividend: CVA's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (705.3%), CVA's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CVA's dividends in 3 years are not forecast to be well covered by earnings (101.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Ranger (63 yo)
Mr. Michael William Ranger, also known as Mike, serves as the President, Chief Executive Officer and Director at Covanta Holding Corporation since October 29, 2020. He co-founded Diamond Castle Holdings, L...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD1.72M) is below average for companies of similar size in the US market ($USD5.31M).
Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.
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 ( 14.7 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$2.673b
- Shares outstanding: 132.98m
- 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||2021/07/31 23:38|
|End of Day Share Price||2021/07/30 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.