Cleanaway Waste Management (CWY) AI Stock Analysis

• Market Cap: $5.40B
• Dividend Yield: 2.32%
• Average Volume (3M): 6.42M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 0.59
• Revenue Growth: 2.39%
• EPS Growth: N/A
• Country: AU
• Employees: 7,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.05
• Shares Outstanding: 2,240,119,100
• 10 Day Avg. Volume: 4,479,847
• 30 Day Avg. Volume: 6,418,291
• PEG Ratio: -90.63
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 49.70
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 7.40
• Enterprise Value/Ebitda: 11.11
• 1Y Price Target: $3.15
• Price Target Upside: 30.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: AU$2.50 ▲(3.73% Upside)

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.

Positive Factors

Vertical integration and asset network

Owning collection, processing, treatment and disposal assets creates a durable competitive advantage: it lets Cleanaway internalize volumes, optimize routing and facility utilization, capture processing margin and reduce third-party fees, supporting steady margin resilience and contract stickiness over time.

Balanced leverage and solid equity base

A moderate debt-to-equity ratio and near-50% equity ratio provide financial resilience against cyclical volume swings and regulatory cost changes. This balance supports disciplined investment in capital-intensive infrastructure and preserves borrowing capacity for strategic projects or acquisitions over the medium term.

Strong operating cash conversion relative to earnings

Operating cash flow well above reported net income signals high cash-generative operations from core services. This durable cash productivity supports ongoing capex for facilities, funds working capital needs, and reduces short-term liquidity risk even if free cash flow faces pressures.

Negative Factors

Weak free cash flow conversion and decline

A large decline in free cash flow and low FCF-to-net-income ratio reduce internal funding for maintenance and growth capex, dividends or debt reduction. Over several quarters this erodes financial flexibility, may force higher external financing, and constrains the ability to invest in efficiency upgrades or expansions.

Recent decline in revenue growth

Declining top-line growth is a structural concern for a volume- and contract-driven business. Lower volumes or pricing pressure reduce facility utilization and weaken ability to spread fixed costs, making margins and return on invested capital harder to sustain without new contract wins or service diversification.

Low net profitability margins

A single-digit net margin leaves a thin buffer against input cost inflation, regulatory levies, or volume declines common in waste services. Sustained low margins constrain retained earnings for reinvestment, limit ROE improvement prospects and make long-term cash returns sensitive to commodity and cost shifts.

Cleanaway Waste Management Business Overview & Revenue Model

Company Description

Cleanaway Waste Management Limited provides waste management, industrial, and environmental services in Australia. The company operates through three segments: Solid Waste Services, Industrial & Waste Services, and Liquid Waste & Health Services. It offers commercial and industrial, municipal, and residential collection services for various types of solid waste streams, including general waste, recyclables, construction, and demolition waste, as well as medical and washroom services. The company also involved in the ownership and management of waste transfer stations, resource recovery and recycling facilities, secure product destruction, quarantine treatment operations, and landfills; sale of recovered paper, cardboard, metals, and plastics; and collection, treatment, processing, and recycling of liquid and hazardous waste, including industrial waste, grease trap waste, oily waters, and used mineral and cooking oils in packaged and bulk forms. In addition, it offers industrial solutions comprising industrial cleaning, vacuum tanker loading, site remediation, sludge management, parts washing, concrete remediation, CCTV, corrosion protection, and emergency response services. Further, the company refines and recycles used mineral oils to produce fuel oils and base oils; generates and sells electricity produced utilizing landfill gas; and provides health and biohazardous waste, organic waste, e-waste recycling, industrial construction and cleaning, and equipment cleaning services, as well as spill kits. It offers its services to various industries. The company was formerly known as Transpacific Industries Group Ltd. and changed its name to Cleanaway Waste Management Limited in February 2016. Cleanaway Waste Management Limited was incorporated in 2002 and is headquartered in Melbourne, Australia.

How the Company Makes Money

Cleanaway 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 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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.85B	3.79B	3.70B	3.51B	2.97B	2.37B
Gross Profit	962.10M	3.79B	480.70M	365.00M	328.50M	316.50M
EBITDA	640.80M	707.90M	688.10M	434.00M	487.40M	521.80M
Net Income	156.90M	156.90M	156.60M	21.60M	78.90M	145.30M
Balance Sheet
Total Assets	6.58B	6.58B	6.37B	6.07B	5.85B	4.80B
Cash, Cash Equivalents and Short-Term Investments	86.50M	86.50M	120.60M	102.10M	66.50M	69.40M
Total Debt	1.80B	1.80B	1.73B	1.59B	1.68B	1.07B
Total Liabilities	3.53B	3.53B	3.37B	3.13B	3.22B	2.16B
Stockholders Equity	3.04B	3.04B	3.00B	2.94B	2.63B	2.63B
Cash Flow
Free Cash Flow	162.80M	122.10M	138.90M	96.70M	204.30M	179.50M
Operating Cash Flow	457.20M	457.20M	542.10M	482.60M	467.30M	425.70M
Investing Cash Flow	-309.80M	-308.10M	-459.50M	-548.90M	-774.40M	-292.40M
Financing Cash Flow	-183.20M	-183.20M	-64.10M	101.90M	304.20M	-143.70M

Cleanaway Waste Management Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.41 is below the 20-day moving average (MA) of 2.52, below the 50-day MA of 2.58, and below the 200-day MA of 2.69, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 30.00 is Neutral, neither overbought nor oversold. The STOCH value of 21.90 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSC	70 Neutral	AU$477.60M	16.35	8.00%	4.73%	-9.67%	-6.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VEE	57 Neutral	AU$79.98M	25.45	5.66%	1.28%	-14.88%	-56.89%
DEM	50 Neutral	AU$32.66M	-14.29	-16.00%	―	11.53%	46.15%
CWY	46 Neutral	$5.40B	34.28	5.08%	2.32%	2.39%	―
CLG	42 Neutral	AU$17.61M	-0.79	-12.78%	―	-8.37%	-300.48%

Cleanaway Waste Management Corporate Events

Cleanaway Appoints Vanessa Guthrie to Board, Discloses Shareholding

Cleanaway Waste Management Limited has announced the appointment of Vanessa Ann Guthrie as a director, effective 1 February 2026. According to the initial director’s interest notice lodged with the ASX, Guthrie holds a beneficial interest in 19,685 ordinary shares in the company via BNP Paribas Securities Services, with no additional contractual interests disclosed, underscoring the company’s ongoing refresh of its board and governance disclosures to the market.

The most recent analyst rating on (AU:CWY) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Cleanaway Waste Management stock, see the AU:CWY Stock Forecast page.

Cleanaway to Issue 2.6 Million Unquoted Performance Rights Under Staff Incentive Plan

Cleanaway Waste Management has notified the market of the issue of 2,620,128 unquoted performance rights under its employee incentive scheme, scheduled to be issued on 5 November 2025. The issuance of these performance rights, which are not intended to be quoted on the ASX, underscores the company’s continued use of equity-based incentives to reward and retain staff, aligning employee interests with long-term shareholder value and operational performance.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.15 price target. To see the full list of analyst forecasts on Cleanaway Waste Management stock, see the AU:CWY Stock Forecast page.

Australian Retirement Trust Ceases Substantial Holding in Cleanaway

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.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.11 price target. To see the full list of analyst forecasts on Cleanaway Waste Management stock, see the AU:CWY Stock Forecast page.

EROAD Partners with Cleanaway for Advanced Vehicle Monitoring in Australia

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.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.11 price target. To see the full list of analyst forecasts on Cleanaway Waste Management stock, see the AU:CWY Stock Forecast page.

Cleanaway Director Increases Stake in Company Securities

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.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.11 price target. To see the full list of analyst forecasts on Cleanaway Waste Management stock, see the AU:CWY Stock Forecast page.

Cleanaway Waste Management Issues New Employee Share Scheme Securities

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.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.11 price target. To see the full list of analyst forecasts on Cleanaway Waste Management stock, see the AU:CWY Stock Forecast page.

Cleanaway Issues Performance Rights to Boost Employee Incentives

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.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.11 price target. To see the full list of analyst forecasts on Cleanaway Waste Management stock, see the AU:CWY Stock Forecast page.

Cleanaway Waste Management Issues New Securities Under Employee Incentive Scheme

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.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.11 price target. To see the full list of analyst forecasts on Cleanaway Waste Management stock, see the AU:CWY Stock Forecast page.