Cleanaway Waste Management (CWY) AI Stock Analysis

• Market Cap: AU$5.69B
• Dividend Yield: 2.32%
• Average Volume (3M): 6.42M
• Price to Earnings (P/E): 38.8
• Beta (1Y): 0.55
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.14
• Price Target Upside: 23.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): AU$4.30B

• Rating: 54 Neutral
• Price Target: AU$2.50 ▼(-1.57% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is anchored by middling financial performance (low profitability and weak free-cash-flow trend despite a stable balance sheet) and weak technicals (below major moving averages with negative MACD). These are partially offset by a constructive earnings update, including upgraded EBIT guidance and improving operating momentum, while valuation is a mild headwind due to a high P/E despite a moderate dividend yield.

Positive Factors

Vertical integration and asset network

Cleanaway's integrated model—collection, processing, recycling and disposal—lets it internalize volumes and capture margin across multiple steps. That durable asset network improves utilization, pricing leverage and resilience to outsourcing pressure, supporting steadier revenues and margins over years.

Multi-year municipal and contract wins

Long-dated municipal contracts provide predictable, recurring revenue and better fleet/facility utilization. Multi-year pricing and route stability lower volume volatility, improve cash flow visibility and support long-term planning and investment returns across the network.

Identified cost synergies and upgraded guidance

Management has quantified near-term synergies and raised EBIT guidance, indicating operational levers to sustainably expand margins. Realized savings and integration gains should durablely boost profitability into FY27, improving cash generation quality if execution continues as guided.

Negative Factors

Fatal safety incidents

Two fatalities are material and can trigger sustained regulatory scrutiny, higher HS&E compliance costs, insurance and contract risk. Beyond one-off remediation, reputational damage can affect municipal tenders and client relationships, imposing lasting operational and cost implications.

Weak free cash flow conversion

Significant negative FCF growth and a low FCF-to-net-income ratio signal constrained cash conversion. Even with strong OCF vs earnings, catch-up tax, working-capital swings and capex needs reduce cash available for deleveraging, dividends or bolt-on investment over the medium term.

Higher finance costs and leverage pressure

Elevated interest expense from acquisition funding increases fixed financial burden and raises sensitivity to rate moves. Higher net finance costs and reported leverage (~2.3x at H1) limit balance-sheet flexibility and heighten refinancing and margin pressures over the coming 2-6 months.

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

Income statement is pressured by slightly negative revenue growth (-0.99%) and a low net margin (4.14%). Balance sheet is comparatively solid with moderate leverage (debt-to-equity 0.59) and a healthy equity ratio (46.24%), but ROE is modest (5.16%). Cash flow is mixed: operating cash flow is strong versus earnings (OCF/NI 2.91) but free cash flow growth is materially negative (-34.36%).

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	4.08B	3.79B	3.70B	3.51B	2.97B	2.37B
Gross Profit	818.70M	3.79B	480.70M	365.00M	328.50M	316.50M
EBITDA	659.40M	707.90M	688.10M	434.00M	487.40M	521.80M
Net Income	120.90M	156.90M	156.60M	21.60M	78.90M	145.30M
Balance Sheet
Total Assets	7.13B	6.58B	6.37B	6.07B	5.85B	4.80B
Cash, Cash Equivalents and Short-Term Investments	102.30M	86.50M	120.60M	102.10M	66.50M	69.40M
Total Debt	2.92B	1.80B	1.73B	1.59B	1.68B	1.07B
Total Liabilities	4.10B	3.53B	3.37B	3.13B	3.22B	2.16B
Stockholders Equity	3.03B	3.04B	3.00B	2.94B	2.63B	2.63B
Cash Flow
Free Cash Flow	180.80M	122.10M	138.90M	96.70M	204.30M	179.50M
Operating Cash Flow	474.20M	457.20M	542.10M	482.60M	467.30M	425.70M
Investing Cash Flow	-797.80M	-308.10M	-459.50M	-548.90M	-774.40M	-292.40M
Financing Cash Flow	308.00M	-183.20M	-64.10M	101.90M	304.20M	-143.70M

Cleanaway Waste Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.54
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 2.54 is above the 20-day moving average (MA) of 2.45, above the 50-day MA of 2.50, and below the 200-day MA of 2.67, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 52.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSC	70 Neutral	AU$466.65M	10.20	6.54%	4.73%	-9.67%	-6.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CWY	54 Neutral	AU$5.69B	38.82	5.08%	2.32%	2.39%	―
VEE	54 Neutral	AU$93.19M	-1.38	5.66%	1.28%	-14.88%	-56.89%
DEM	49 Neutral	AU$31.03M	-16.21	-16.00%	―	11.53%	46.15%
CLG	42 Neutral	AU$12.81M	-0.15	-51.88%	―	-8.37%	-300.48%

Cleanaway Waste Management Corporate Events

Cleanaway lifts guidance as strong first-half boosts margins and dividend

Cleanaway Waste Management reported a strong first half for FY26, with gross revenue up 13.7% to $2.21 billion and net revenue up 13.0% to $1.88 billion, driven by solid growth in its Solid Waste Services segment and the contribution from the Contract Resources acquisition. While statutory EBIT fell 21.2% to $137.2 million due to $91 million of significant, non-recurring items, underlying EBIT rose 16.9% to $228.2 million, lifting the underlying EBIT margin to 12.2% and supporting a 19.6% increase in the fully franked interim dividend to 3.35 cents per share.

The company upgraded its FY26 underlying EBIT guidance to a range of $480 million to $500 million, reflecting a robust first-half performance and a strong outlook. Cleanaway also advanced key safety and efficiency initiatives, including AI-enabled pedestrian detection and in-vehicle monitoring across about 3,500 collection vehicles, signalling continued investment in operational risk reduction and fleet transformation that underpins its improving returns and industry positioning.

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 Declares Interim Dividend for Half‑Year to December 2025

Cleanaway Waste Management has declared an ordinary dividend of AUD 0.0335 per fully paid share, relating to the six‑month period ending 31 December 2025. The ex‑dividend date is 11 March 2026, the record date is 12 March 2026 and shareholders will receive payment on 16 April 2026, with participation in the dividend reinvestment plan closing on 13 March 2026.

The announcement underlines Cleanaway’s continued practice of returning cash to shareholders in line with its interim reporting cycle. The scheduled distribution may be viewed as a signal of ongoing cash generation and financial stability, providing income for investors while potentially supporting longer‑term capital management through the dividend reinvestment plan option.

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 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.