Casella Waste Systems, Inc.
Casella Waste Systems, Inc. Fundamental Analysis
Casella Waste Systems, Inc. (CWST) shows weak financial fundamentals with a PE ratio of 743.84, profit margin of 0.43%, and ROE of 0.50%. The company generates $1.8B in annual revenue with strong year-over-year growth of 17.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CWST's fundamental strength across five key dimensions:
Efficiency Score
WeakCWST struggles to generate sufficient returns from assets.
Valuation Score
ModerateCWST shows balanced valuation metrics.
Growth Score
ModerateCWST shows steady but slowing expansion.
Financial Health Score
ExcellentCWST maintains a strong and stable balance sheet.
Profitability Score
ModerateCWST maintains healthy but balanced margins.
Key Financial Metrics
Is CWST Expensive or Cheap?
P/E Ratio
CWST trades at 743.84 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CWST's PEG of -16.23 indicates potential undervaluation.
Price to Book
The market values Casella Waste Systems, Inc. at 3.73 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.14 times EBITDA. This signals the market has high growth expectations.
How Well Does CWST Make Money?
Net Profit Margin
For every $100 in sales, Casella Waste Systems, Inc. keeps $0.43 as profit after all expenses.
Operating Margin
Core operations generate 4.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.50 in profit for every $100 of shareholder equity.
ROA
Casella Waste Systems, Inc. generates $0.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Casella Waste Systems, Inc. produces operating cash flow of $324.64M, showing steady but balanced cash generation.
Free Cash Flow
Casella Waste Systems, Inc. produces free cash flow of $83.39M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.33 in free cash annually.
FCF Yield
CWST converts 1.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
743.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-16.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How CWST Stacks Against Its Sector Peers
| Metric | CWST Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 743.84 | 26.66 | Worse (Expensive) |
| ROE | 0.50% | 1305.00% | Weak |
| Net Margin | 0.43% | -5148.00% (disorted) | Weak |
| Debt/Equity | 0.84 | 0.82 | Neutral |
| Current Ratio | 1.26 | 10.84 | Neutral |
| ROA | 0.24% | -1553219.00% (disorted) | Weak |
CWST outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Casella Waste Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
82.33%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-93.36%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
81.21%
Industry Style: Cyclical, Value, Infrastructure
High Growth