Cleanaway Waste Management (CWY) AI Stock Analysis

• Market Cap: $6.07B
• Dividend Yield: 2.06%
• Average Volume (3M): 5.61M
• Price to Earnings (P/E): 38.5
• Beta (1Y): 0.88
• Revenue Growth: 4.76%
• EPS Growth: 234.76%
• Country: AU
• Employees: 7,900
• Sector: Industrials
• Sector Strength: 87
• Industry: Waste Management
• EPS (TTM): 0.04
• Shares Outstanding: 2,231,991,700
• 10 Day Avg. Volume: 6,293,074
• 30 Day Avg. Volume: 5,613,909
• PEG Ratio: -3.58
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 59.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.15
• Price Target Upside: 16.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: ―

Cleanaway Waste Management Ltd. demonstrates strong financial performance with robust revenue growth, profitability, and cash flow, supporting a high score in this area. The technical analysis suggests moderate momentum with potential caution due to mixed indicators. The valuation reflects some concerns with a high P/E ratio, though offset by a reasonable dividend yield. Overall, the company's solid financial footing and moderate technical outlook provide a balanced investment case.

Positive Factors

Expansion Plans

Cleanaway Waste Management Ltd. plans to double capacity at the Dynon waste transfer site following the acquisition of CityWide Waste.

Regulatory Approval

The acquisition of CityWide Waste has been approved by the ACCC, with financial close anticipated before the fiscal year end.

Negative Factors

Economic Environment

CWY noted headwinds including economic uncertainty and floods impeding STO services.

Valuation Adjustments

Valuations have been adjusted lower to account for remediation provisions.

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 Waste Management Ltd. generates revenue primarily through its waste management and recycling services. The company's key revenue streams include waste collection and disposal fees charged to both residential and commercial clients. Additionally, Cleanaway earns income from the sale of recyclable materials that are collected and processed through its facilities. The company also offers industrial services, including hazardous waste management and liquid waste treatment, contributing to its diverse revenue portfolio. Strategic partnerships with local governments and businesses further enhance its earnings, providing consistent demand for its comprehensive waste management solutions.

Cleanaway Waste Management Financial Statement Overview

Summary

Cleanaway Waste Management Ltd. exhibits strong financial health, characterized by steady revenue growth, improved profitability, and robust cash flow generation. The company maintains a stable balance sheet with manageable leverage and a strong equity base, indicating financial stability and growth potential. While the company shows positive momentum across key financial metrics, continuous monitoring of leverage and further enhancements in return on equity could bolster long-term sustainability.

Income Statement

The income statement reflects strong revenue growth with a 5.5% increase over the past year and consistent improvements in gross profit margin, now at 23.1%. The net profit margin has significantly improved to 4.2%, indicating better cost control and efficiency. Both EBIT and EBITDA margins have strengthened, reaching 9.2% and 18.6% respectively, suggesting robust operational performance.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.58, indicating manageable leverage levels. The equity ratio is solid at 47.0%, providing a strong capital base. Return on equity has improved to 5.2%, reflecting enhanced profitability, although there is room for further improvement.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 3.46, highlighting effective cash generation from operations. The free cash flow has grown by 43.6% compared to the previous year, emphasizing strong cash management and investment capabilities. Free cash flow to net income ratio is favorable at 0.89, underscoring efficient capital deployment.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.83B	3.70B	3.51B	2.97B	2.37B	2.30B
	Gross Profit
937.10M	853.80M	365.00M	328.50M	316.50M	298.30M
	EBIT
353.70M	341.50M	154.70M	204.10M	219.30M	194.90M
	EBITDA
625.60M	688.10M	487.10M	487.40M	521.80M	459.90M
	Net Income Common Stockholders
156.70M	156.60M	21.60M	78.90M	145.30M	112.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
116.40M	120.60M	102.10M	66.50M	69.40M	79.80M
	Total Assets
6.38B	6.37B	6.07B	5.85B	4.80B	4.66B
	Total Debt
1.84B	1.73B	1.59B	1.68B	1.07B	1.07B
	Net Debt
1.72B	1.61B	1.49B	1.62B	1.00B	985.60M
	Total Liabilities
3.36B	3.37B	3.13B	3.22B	2.16B	2.09B
	Stockholders Equity
3.02B	3.00B	2.94B	2.63B	2.63B	2.57B
Cash Flow		Free Cash Flow
186.00M	138.90M	96.70M	204.30M	179.50M	192.90M
	Operating Cash Flow
477.00M	542.10M	482.60M	467.30M	425.70M	402.70M
	Investing Cash Flow
-326.00M	-459.50M	-548.90M	-774.40M	-292.40M	-283.40M
	Financing Cash Flow
-95.20M	-64.10M	101.90M	304.20M	-143.70M	-95.70M

Cleanaway Waste Management Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.71
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 2.71 is below the 20-day moving average (MA) of 2.73, above the 50-day MA of 2.67, and below the 200-day MA of 2.72, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 20.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CWY.

Cleanaway Waste Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWY	73 Outperform	$6.07B	38.55	5.31%	2.06%	4.76%	234.76%
KSC	70 Outperform	AU$468.02M	15.24	8.92%	4.68%	-6.12%	2.79%
CLG	66 Neutral	AU$25.53M	4.85	3.80%	―	15.82%	-66.67%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
VEE	61 Neutral	AU$106.06M	23.49	8.82%	0.59%	9.97%	-22.07%
DEM	54 Neutral	AU$29.30M	―	-22.62%	―	6.37%	20.31%
ETR	35 Underperform	AU$13.88M	―	-1011.73%	―	-10.74%	-63.10%

Cleanaway Waste Management Corporate Events

Australian Retirement Trust Acquires Substantial Stake in Cleanaway

Australian Retirement Trust Pty Ltd has become a substantial holder in Cleanaway Waste Management Limited, acquiring a 5.043% voting power through 112,568,546 fully paid ordinary shares. This acquisition signifies a notable investment in Cleanaway, potentially impacting its market positioning and stakeholder interests by aligning with a significant superannuation fund.

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.

Cleanaway Unveils Branch-led Operating Model to Enhance Efficiency

Cleanaway Waste Management Limited announced a presentation for their Branch-led Operating Model Information session, highlighting their commitment to enhancing operational efficiency and stakeholder engagement. This initiative is part of Cleanaway’s broader strategy to reinforce its market position and drive sustainable growth in the waste management industry.

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.

Challenger Limited Alters Stake in Cleanaway Waste Management

Challenger Limited has announced a change in the interests of its substantial holding in Cleanaway Waste Management Limited. The notice indicates that Challenger Limited and its associated entities have adjusted their voting power in Cleanaway, which may impact the company’s governance and decision-making processes.

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.

ACCC Approves Cleanaway’s Acquisition of Citywide Waste

The Australian Competition and Consumer Commission (ACCC) has decided not to oppose Cleanaway Waste Management Limited’s proposed acquisition of Citywide Waste, a business owned by the City of Melbourne Council. The ACCC’s investigation concluded that the acquisition would not significantly reduce competition in Melbourne’s putrescible waste disposal services market. Larger waste collection customers can still divert waste to other facilities, and the acquisition is unlikely to impact customers who prefer the Dynon Road transfer station due to its proximity to the Melbourne CBD. The ACCC expects that rival landfills and transfer stations will continue to compete with Cleanaway post-acquisition.

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.

Cleanaway Waste Management Enhances Operational Efficiency

Cleanaway Waste Management has announced a significant operational update aimed at enhancing its waste management services. The company is focusing on optimizing its processes to improve efficiency and sustainability, which is expected to strengthen its market position and benefit stakeholders by providing more reliable and environmentally friendly waste management solutions.

Cleanaway Director Increases Shareholding Through Dividend Reinvestment

Cleanaway Waste Management Ltd. announced a change in the director’s interest, with Andrew Michael Kelly acquiring 961 ordinary shares through a dividend reinvestment plan, increasing his total holdings to 88,928 shares. This change reflects the company’s ongoing commitment to aligning management interests with shareholder value, potentially impacting investor confidence and stakeholder engagement.

Cleanaway Waste Management Announces Director’s Interest Change

Cleanaway Waste Management Ltd. has announced a change in the director’s interest notice, specifically concerning Jackie McArthur. The change involves the acquisition of additional ordinary shares under a dividend reinvestment plan, increasing the total number of shares held indirectly by Jackie McArthur. This adjustment reflects the company’s ongoing commitment to aligning management interests with shareholder value and could potentially impact stakeholder perceptions positively.

Cleanaway Issues Performance Rights to Boost Employee Engagement

Cleanaway Waste Management Ltd. announced the issuance of 20,405 performance rights as part of an employee incentive scheme. This move is aimed at motivating and retaining employees, which could strengthen the company’s operational capabilities and enhance its competitive position in the waste management industry.

State Street Corporation Increases Stake in Cleanaway Waste Management

Cleanaway Waste Management Ltd. has announced a change in the substantial holding of voting shares within the company. This change involves various entities under State Street Corporation, which now hold significant voting power and control over the disposal of securities as investment managers or trustees. The announcement indicates a shift in the control dynamics of the company’s shares, potentially impacting its governance and decision-making processes.

Cleanaway Expands with Strategic Acquisition of Contract Resources

Cleanaway Waste Management Limited has announced the strategic acquisition of Contract Resources, a move that is expected to complement its existing operations. This acquisition is part of Cleanaway’s strategy to enhance its market position and operational capabilities, potentially benefiting stakeholders by expanding its service offerings and reinforcing its commitment to sustainability.

Cleanaway Acquires Contract Resources to Boost Industrial Services

Cleanaway Waste Management Limited has announced the acquisition of Contract Resources Group Pty Limited for $377 million, aiming to enhance its industrial services offering. This strategic acquisition is expected to accelerate Cleanaway’s growth strategy, particularly in decommissioning, decontamination, and remediation services, and is anticipated to deliver significant cost synergies and earnings growth. The acquisition will strengthen Cleanaway’s market position by integrating production-critical technical services and leveraging long-term customer relationships, positioning the company as a leading provider in the oil & gas sector.

Cleanaway Updates Dividend Distribution Details

Cleanaway Waste Management Ltd. has updated its previous announcement regarding the dividend distribution for its ordinary fully paid shares. The update includes changes to the dividend amount in New Zealand dollars, the exchange rate for NZD, and the Dividend Reinvestment Plan (DRP) price. This announcement reflects Cleanaway’s ongoing financial management and commitment to providing shareholder returns, potentially impacting investor relations and market perception.