tiprankstipranks
Trending News
More News >
Cleanaway Waste Management Ltd. (AU:CWY)
ASX:CWY

Cleanaway Waste Management (CWY) AI Stock Analysis

Compare
30 Followers

Top Page

AU:CWY

Cleanaway Waste Management

(Sydney:CWY)

Select Model
Select Model
Select Model
Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
AU$2.50
▼(-3.47% Downside)
Cleanaway Waste Management's overall stock score is primarily impacted by weak financial performance and technical indicators. The high P/E ratio suggests overvaluation, and the bearish technical signals indicate potential downside risk. The stable balance sheet provides some financial resilience, but the company needs to address profitability and cash flow challenges to improve its outlook.

Cleanaway Waste Management (CWY) vs. iShares MSCI Australia ETF (EWA)

Cleanaway Waste Management Business Overview & Revenue Model

Company DescriptionCleanaway Waste Management (CWY) is a leading waste management and recycling company in Australia, providing comprehensive waste management solutions across various sectors including municipal, commercial, and industrial. The company specializes in waste collection, treatment, recycling, and disposal services, aiming to promote sustainability and reduce environmental impact. Cleanaway operates a diverse fleet and a network of facilities that handle different types of waste materials, including general waste, recyclables, and hazardous materials.
How the Company Makes MoneyCleanaway generates revenue through multiple streams, primarily by charging customers for waste collection and disposal services. Their revenue model includes fees for regular waste collection, one-off pickups, and specialized services for hazardous waste management. Additionally, the company earns money from recycling operations, where recovered materials are sold to manufacturers and other industries. Cleanaway has formed significant partnerships with municipalities and private enterprises, which provide stable contracts and recurring revenue. The company also benefits from government initiatives that promote recycling and waste reduction, further enhancing its earning potential in the sustainability sector.

Cleanaway Waste Management Earnings Call Summary

Earnings Call Date:Feb 15, 2024
(Q2-2024)
|
% Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance, strategic progress, and successful operational initiatives. However, challenges remain with labor productivity, safety performance, and competition. The balance between achievements and ongoing challenges results in a cautiously optimistic outlook.
Q2-2024 Updates
Positive Updates
Strong Financial Performance
Delivered a strong financial performance with a 25.7% increase in EBIT to $173.9 million, reflecting growth in various segments and recovery from previous challenges.
Operational Excellence Initiatives
Implemented branch-led productivity and efficiency initiatives, leading to a 160 basis point increase in EBIT margin and a 90 basis point rise in ROIC.
New Business Wins and Strategic Progress
Achieved new business wins and strategic progress including launching VIC CDS operations and mobilizing the IWS Santos contract.
Methane Reduction and Environmental Initiatives
Landfill gas capture and monetization program reduced emissions, with methane reduction tracking 15% ahead of the target.
Health Services Business Turnaround
Health Services returned to profitability in Q2 and is on track to deliver an annualized $15 million EBIT run rate by Q4.
Successful Launch of VIC CDS Operations
VIC CDS operations commenced successfully on November 1, with volumes tracking in line with expectations.
Negative Updates
Challenges with Labor Productivity
Despite reducing vacancy levels and turnover, first-year voluntary turnover remains high, impacting productivity.
Higher Repair and Maintenance Costs
Faced higher repair and maintenance costs due to mechanic shortages and increased use of third-party mechanics.
Continued Competition in Markets
Faced intense competition in certain markets, particularly in Victoria's landfill operations, affecting pricing strategies.
Safety Performance Concerns
Although on track with the delivery of safety plans, lagging indicators like TRIFR are behind expectations.
Company Guidance
During the Cleanaway FY '24 Half Year Results Briefing, the company reported strong financial performance, showcasing a 25.7% increase in underlying EBIT to $173.9 million and a 160 basis point expansion in EBIT margin. The company highlighted progress in its strategic initiatives, such as the recovery of its Queensland Solids business and the health services sector. Cleanaway is on track to meet its FY '24 EBIT guidance of approximately $350 million, with significant contributions from new business growth and operational efficiencies. The organization also emphasized its commitment to sustainability, with a focus on methane reduction, which is tracking 15% ahead of the planned '24 target emissions trajectory. Furthermore, the directors declared an interim unfranked dividend of $0.0245 per share, maintaining their financial discipline and shareholder commitment.

Cleanaway Waste Management Financial Statement Overview

Summary
Cleanaway Waste Management faces challenges with declining revenue growth and profitability margins, which could impact future performance. The balance sheet remains stable with a balanced debt-to-equity ratio and solid equity base, providing financial resilience. Cash flow metrics highlight concerns with free cash flow generation, though operating cash flow remains strong. The company should focus on improving profitability and cash flow conversion to enhance financial health.
Income Statement
45
Neutral
Cleanaway Waste Management shows a declining revenue growth rate of -0.99% in the latest year, indicating potential challenges in maintaining sales momentum. The gross profit margin is notably high at 100% due to the accounting treatment of costs, but the net profit margin is relatively low at 4.14%, suggesting limited profitability. EBIT and EBITDA margins are moderate, reflecting operational efficiency but also highlighting room for improvement in cost management.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio is 0.59, indicating a balanced approach to leveraging debt. Return on equity is modest at 5.16%, suggesting average efficiency in generating returns from shareholders' equity. The equity ratio stands at 46.24%, showing a solid equity base relative to total assets, which provides financial stability.
Cash Flow
50
Neutral
Free cash flow growth is negative at -34.36%, raising concerns about cash generation capabilities. However, the operating cash flow to net income ratio is 2.91, indicating strong cash flow generation relative to net income. The free cash flow to net income ratio is 0.27, suggesting that a portion of earnings is being converted into free cash flow, albeit at a declining rate.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.85B3.79B3.70B3.51B2.97B2.37B
Gross Profit962.10M3.79B480.70M365.00M328.50M316.50M
EBITDA640.80M707.90M688.10M434.00M487.40M521.80M
Net Income156.90M156.90M156.60M21.60M78.90M145.30M
Balance Sheet
Total Assets6.58B6.58B6.37B6.07B5.85B4.80B
Cash, Cash Equivalents and Short-Term Investments86.50M86.50M120.60M102.10M66.50M69.40M
Total Debt1.80B1.80B1.73B1.59B1.68B1.07B
Total Liabilities3.53B3.53B3.37B3.13B3.22B2.16B
Stockholders Equity3.04B3.04B3.00B2.94B2.63B2.63B
Cash Flow
Free Cash Flow162.80M122.10M138.90M96.70M204.30M179.50M
Operating Cash Flow457.20M457.20M542.10M482.60M467.30M425.70M
Investing Cash Flow-309.80M-308.10M-459.50M-548.90M-774.40M-292.40M
Financing Cash Flow-183.20M-183.20M-64.10M101.90M304.20M-143.70M

Cleanaway Waste Management Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.59
Price Trends
50DMA
2.61
Negative
100DMA
2.71
Negative
200DMA
2.69
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
45.44
Neutral
STOCH
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CWY, the sentiment is Negative. The current price of 2.59 is below the 20-day moving average (MA) of 2.64, below the 50-day MA of 2.61, and below the 200-day MA of 2.69, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CWY.

Cleanaway Waste Management Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
AU$466.65M15.848.00%4.69%-9.67%-6.49%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
AU$113.00M35.595.66%1.30%-14.88%-56.89%
53
Neutral
AU$35.64M-15.00-16.00%11.53%46.15%
46
Neutral
$5.80B36.845.08%2.32%2.39%
43
Neutral
42
Neutral
AU$19.15M-0.77-12.78%-8.37%-300.48%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CWY
Cleanaway Waste Management
2.59
-0.04
-1.48%
AU:CLG
Close the Loop Ltd.
0.03
-0.19
-85.78%
AU:VEE
Veem Ltd
0.79
-0.42
-34.71%
AU:DEM
De.mem Ltd.
0.10
-0.03
-23.08%
AU:KSC
K & S Corporation Limited
3.38
0.00
0.00%
AU:ETR
Pearl Global Ltd
0.01
0.00
0.00%

Cleanaway Waste Management Corporate Events

Australian Retirement Trust Ceases Substantial Holding in Cleanaway
Nov 20, 2025

Australian Retirement Trust Pty Ltd has ceased to be a substantial holder in Cleanaway Waste Management Limited as of November 18, 2025. This change in substantial holding could impact the company’s shareholder structure and influence its market dynamics, as substantial holders often play a significant role in corporate governance and strategic decision-making.

EROAD Partners with Cleanaway for Advanced Vehicle Monitoring in Australia
Nov 17, 2025

EROAD has entered into an agreement with Cleanaway Waste Management Ltd. to deliver a comprehensive vehicle monitoring solution for over 3,000 heavy vehicles in Australia. This partnership, which includes advanced safety and compliance features, is expected to generate over A$5 million in annual recurring revenue and highlights EROAD’s commitment to supporting the Australian market with innovative technology. The collaboration reflects Cleanaway’s dedication to safety and efficiency, marking a significant step towards safer roads and work environments.

Cleanaway Director Increases Stake in Company Securities
Nov 12, 2025

Cleanaway Waste Management Limited announced a change in the director’s interest, with Mark John Schubert acquiring additional securities. The acquisition includes 754,641 Rights and 147,581 restricted Ordinary Shares, granted under the company’s Long Term Incentive Plan and Deferred Equity Plan. This change, approved at the company’s Annual General Meeting, reflects Cleanaway’s ongoing commitment to aligning management incentives with shareholder interests, potentially impacting the company’s governance and stakeholder confidence.

Cleanaway Waste Management Issues New Employee Share Scheme Securities
Nov 12, 2025

Cleanaway Waste Management Limited has announced the issuance of new securities as part of its 2022 Employee Share Scheme. The company will issue matching shares on a 1 for 4 basis to employee shareholders who have met the three-year employment requirement, with a total of 25,061 ordinary fully paid securities to be quoted on the ASX. This move aims to incentivize and retain employees, potentially strengthening the company’s operational stability and stakeholder confidence.

Cleanaway Issues Performance Rights to Boost Employee Incentives
Nov 12, 2025

Cleanaway Waste Management Limited announced the issuance of 1,515,016 performance rights under its employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize its workforce, potentially impacting its operational efficiency and aligning employee interests with company performance.

Cleanaway Waste Management Issues New Securities Under Employee Incentive Scheme
Nov 12, 2025

Cleanaway Waste Management Limited announced the issuance of 603,256 ordinary fully paid securities under an employee incentive scheme, which will be quoted on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance employee engagement and align staff interests with corporate performance, potentially strengthening its market position and stakeholder relations.

Cleanaway Waste Management AGM Results and First Strike on Remuneration Report
Oct 21, 2025

Cleanaway Waste Management Limited held its Annual General Meeting on 21 October 2025, where all resolutions were carried, including the re-election of directors and granting of performance rights. However, the remuneration report received more than 25% votes against, marking a first strike under the Corporations Act 2001, which could have implications for future governance and shareholder relations.

Cleanaway Waste Management Addresses Safety Concerns Amid Recent Fatalities
Oct 20, 2025

Cleanaway Waste Management Limited’s recent Annual General Meeting highlighted significant safety concerns within the company, with three fatalities reported in FY25, including a recent incident at the Coolaroo Material Recovery Facility. The company has initiated both internal and external reviews to enhance its safety culture and processes, with a focus on improving communication and implementing in-cab vehicle monitoring systems to prevent future incidents.

Cleanaway Reaffirms FY26 Guidance Amid Cost Reduction Efforts
Oct 20, 2025

Cleanaway Waste Management Limited has reaffirmed its financial guidance for FY26, expecting underlying EBIT between $470 million and $500 million, despite subdued trading conditions in the September quarter. The company is undertaking an indirect cost reduction program to create a leaner business, focusing on enhancing customer experience and driving earnings to cash, with more details to be provided in February 2026.

Cleanaway Director Increases Stake Through Dividend Reinvestment
Oct 7, 2025

Cleanaway Waste Management Limited announced a change in the director’s interest, with Andrew Michael Kelly acquiring 1,036 ordinary shares under the dividend reinvestment plan, increasing his total holdings to 89,964 shares. This transaction reflects the company’s ongoing commitment to aligning director interests with shareholder value, potentially strengthening investor confidence and reinforcing its market position.

Director’s Increased Stake in Cleanaway Signals Confidence
Oct 7, 2025

Cleanaway Waste Management Limited announced a change in the director’s interest, with Jackie McArthur acquiring additional ordinary shares through a dividend reinvestment plan. This change reflects the director’s increased stake in the company, potentially signaling confidence in Cleanaway’s future performance and stability, which could positively impact investor sentiment.

Cleanaway Waste Management Announces New Securities Quotation
Oct 7, 2025

Cleanaway Waste Management Limited has announced the issuance of 5,909,828 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange. This move is part of a dividend or distribution plan, potentially impacting the company’s financial structure and offering opportunities for stakeholders to engage with the company’s growth strategy.

Australian Retirement Trust Ceases Substantial Holding in Cleanaway Waste Management
Oct 1, 2025

Australian Retirement Trust Pty Ltd has ceased to be a substantial holder in Cleanaway Waste Management Limited as of September 29, 2025. This change in substantial holding could impact Cleanaway’s shareholder structure and may influence its market positioning, potentially affecting investor confidence and stakeholder interests.

Cleanaway Updates Dividend Distribution Details
Sep 24, 2025

Cleanaway Waste Management Limited has updated its previous announcement regarding the dividend distribution for the period ending June 30, 2025. The update includes adjustments to the dividend amount in New Zealand dollars and the exchange rate, as well as changes to the Dividend Reinvestment Plan (DRP) price. This announcement reflects Cleanaway’s commitment to providing accurate financial information to its stakeholders and may impact investor decisions regarding dividend reinvestment.

Cleanaway’s 2025 Sustainability Report: A Commitment to Sustainable Practices
Sep 18, 2025

Cleanaway Waste Management has released its 2025 Sustainability Report, highlighting progress in key sustainability areas over the past financial year. The report outlines the company’s efforts in resource recovery, emissions reduction, and environmental protection, aligning with global sustainability standards and goals. This initiative underscores Cleanaway’s dedication to sustainable practices and its impact on the industry, with assurance provided by Ernst & Young.

Cleanaway Waste Management Announces 2025 AGM Details
Sep 18, 2025

Cleanaway Waste Management Limited has announced its 2025 Annual General Meeting (AGM) scheduled for October 21, 2025, in Brisbane, with an option for shareholders to participate online. Key agenda items include reviewing the financial report for FY2025, voting on the remuneration report, re-electing directors, and discussing financial assistance related to the Contract Resources acquisition, reflecting the company’s ongoing strategic initiatives and shareholder engagement.

Cleanaway Waste Management Releases 2025 Corporate Governance Statement
Sep 18, 2025

Cleanaway Waste Management has released its Corporate Governance Statement for 2025, emphasizing the importance of high corporate governance standards in achieving business objectives and protecting stakeholder interests. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s Principles and Recommendations, highlighting its commitment to effective oversight and risk management.

Cleanaway Waste Management’s 2025 Annual Report Highlights Sustainability and Reconciliation Efforts
Sep 18, 2025

Cleanaway Waste Management’s 2025 Annual Report highlights its commitment to sustainability and reconciliation with Aboriginal and Torres Strait Islander peoples. The report outlines the company’s strategic updates, financial performance, and operational reviews, emphasizing its dedication to sustainable practices and governance. The upcoming Annual General Meeting is scheduled for October 21, 2025, in Brisbane, where further corporate governance details will be discussed.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 18, 2025