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Cleanaway Waste Management Ltd. (AU:CWY)
:CWY

Cleanaway Waste Management (CWY) AI Stock Analysis

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AU

Cleanaway Waste Management

(OTC:CWY)

Rating:70Outperform
Price Target:
AU$3.00
▲(7.14%Upside)
Cleanaway Waste Management Ltd. scores well due to its strong financial performance, highlighted by steady revenue growth and robust cash flow. Technical analysis shows neutral momentum, with potential for improvement. However, the high P/E ratio indicates valuation concerns, which slightly dampen the overall score.
Positive Factors
Business Expansion
Cleanaway Waste Management Ltd. plans to double capacity at the Dynon waste transfer site following the acquisition of CityWide Waste.
Earnings Forecast
EPS estimates for FY26 and FY27 have been increased to reflect the acquisition.
Negative Factors
Economic Challenges
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 (CWY) vs. iShares MSCI Australia ETF (EWA)

Cleanaway Waste Management Business Overview & Revenue Model

Company DescriptionCleanaway Waste Management Ltd. is a leading waste management company in Australia, providing comprehensive waste management, recycling, and industrial services to a wide range of sectors including commercial, industrial, and municipal clients. The company offers a suite of services including solid waste collection, recycling, liquid waste management, and industrial cleaning solutions, positioning itself as a key player in promoting sustainable waste management practices across the country.
How the Company Makes MoneyCleanaway 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 Earnings Call Summary

Earnings Call Date:Feb 18, 2025
(Q2-2024)
|
% Change Since: 4.87%|
Next Earnings Date:Aug 14, 2025
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 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue3.83B3.70B3.51B2.97B2.37B2.30B
Gross Profit937.10M853.80M365.00M328.50M316.50M298.30M
EBITDA625.60M688.10M487.10M487.40M521.80M459.90M
Net Income156.70M156.60M21.60M78.90M145.30M112.90M
Balance Sheet
Total Assets6.38B6.37B6.07B5.85B4.80B4.66B
Cash, Cash Equivalents and Short-Term Investments116.40M120.60M102.10M66.50M69.40M79.80M
Total Debt1.84B1.73B1.59B1.68B1.07B1.07B
Total Liabilities3.36B3.37B3.13B3.22B2.16B2.09B
Stockholders Equity3.02B3.00B2.94B2.63B2.63B2.57B
Cash Flow
Free Cash Flow186.00M138.90M96.70M204.30M179.50M192.90M
Operating Cash Flow477.00M542.10M482.60M467.30M425.70M402.70M
Investing Cash Flow-326.00M-459.50M-548.90M-774.40M-292.40M-283.40M
Financing Cash Flow-95.20M-64.10M101.90M304.20M-143.70M-95.70M

Cleanaway Waste Management Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.80
Price Trends
50DMA
2.72
Positive
100DMA
2.65
Positive
200DMA
2.71
Positive
Market Momentum
MACD
0.02
Negative
RSI
62.29
Neutral
STOCH
78.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CWY, the sentiment is Positive. The current price of 2.8 is above the 20-day moving average (MA) of 2.74, above the 50-day MA of 2.72, and above the 200-day MA of 2.71, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.29 is Neutral, neither overbought nor oversold. The STOCH value of 78.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CWY.

Cleanaway Waste Management Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCLG
72
Outperform
AU$23.40M4.443.80%15.82%-66.67%
AUCWY
70
Outperform
AU$6.29B40.115.31%1.98%4.76%234.76%
AUKSC
70
Outperform
AU$465.28M15.158.92%4.71%-6.12%2.79%
65
Neutral
$10.75B15.655.18%1.92%3.09%-27.41%
AUVEE
64
Neutral
AU$122.38M27.118.82%0.53%9.97%-22.07%
AUDEM
54
Neutral
AU$30.77M-22.62%6.37%20.31%
AUETR
35
Underperform
AU$13.88M-1011.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CWY
Cleanaway Waste Management
2.80
0.13
4.67%
AU:CLG
Close the Loop Ltd.
0.05
-0.27
-84.38%
AU:VEE
Veem Ltd
0.84
-0.88
-51.16%
AU:DEM
De.mem Ltd.
0.10
-0.02
-16.67%
AU:KSC
K & S Corporation Limited
3.28
0.26
8.61%
AU:ETR
Pearl Global Ltd
0.01
0.00
0.00%

Cleanaway Waste Management Corporate Events

Cleanaway’s Strategic Acquisition of Contract Resources Gains ACCC Approval
Jul 4, 2025

Cleanaway Waste Management Limited has received approval from the Australian Competition and Consumer Commission (ACCC) for its acquisition of Contract Resources, which is set to be completed by the end of July 2025. This strategic acquisition will enhance Cleanaway’s Industrial Services business, positioning it as a leading provider of integrated technical services in the oil & gas, resources, and industrial sectors. The acquisition is expected to accelerate Cleanaway’s strategy in decommissioning, decontamination, and remediation, allowing the company to secure a larger share of these projects and manage complex, hazardous waste streams more effectively.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.25 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 Contract Resources
Jul 4, 2025

The Australian Competition and Consumer Commission (ACCC) has announced it will not oppose Cleanaway Waste Management Limited’s proposed acquisition of Contract Resources Group Pty Ltd. The ACCC’s review found that the acquisition is unlikely to substantially lessen competition in the industrial services or waste management sectors, as the merged entity will continue to face competition from other suppliers. Furthermore, the potential for leveraging Contract Resources’ strong position in specialist industrial services into Cleanaway’s waste management offerings is deemed unprofitable due to the availability of alternative options for customers.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.25 price target. To see the full list of analyst forecasts on Cleanaway Waste Management stock, see the AU:CWY Stock Forecast page.

Cleanaway Expands with Citywide Acquisition
Jul 1, 2025

Cleanaway Waste Management Limited has completed the acquisition of the Citywide waste and recycling business from Citywide Service Solutions Pty Ltd as of July 1, 2025. This strategic acquisition is expected to enhance Cleanaway’s operational capabilities and strengthen its position in the waste management industry, potentially benefiting stakeholders by expanding its service offerings and market reach.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.25 price target. To see the full list of analyst forecasts on Cleanaway Waste Management stock, see the AU:CWY Stock Forecast page.

Cleanaway Enhances Melbourne Landfill Operations with Boral Agreement
Jun 24, 2025

Cleanaway Waste Management Limited has entered into a Variation Agreement with Boral Limited to amend the existing Operating Agreement for the Melbourne Regional Landfill (MRL). This agreement allows Cleanaway to access a new area adjacent to the existing MRL operations, enhancing operational efficiency and extending the site’s lifespan beyond 2050, subject to regulatory approvals. The agreement also resolves litigation issues with Boral and is part of Cleanaway’s strategy to future-proof its Victorian post-collections network, ensuring long-term service capabilities for its customers and communities.

The most recent analyst rating on (AU:CWY) stock is a Buy with a A$3.00 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 Acquires Substantial Stake in Cleanaway
Jun 9, 2025

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
May 27, 2025

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
May 15, 2025

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
May 15, 2025

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
May 7, 2025

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
Apr 14, 2025

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
Apr 14, 2025

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
Apr 11, 2025

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.

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: Jul 01, 2025