Cleanaway Waste Management Ltd. (AU:CWY)
ASX:CWY
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Cleanaway Waste Management
(Sydney:CWY)
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Rating:54Neutral
Price Target:
AU$2.00
▼(-13.42% Downside)
Action:ReiteratedDate: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 & long-term contracts
Cleanaway’s integrated model (collection, transport, processing, disposal) plus multi‑year municipal contracts create recurring, sticky revenue and capture margin across the waste value chain. These structural contracts and owned infrastructure underpin predictable volumes and durable cash flows for 2–6+ months.
Negative Factors
Weak free cash flow trend
Material FCF contraction reduces the company’s internal funding capacity for capex, dividends and M&A. Even with operating cash conversion strength, declining free cash flow and recent one‑off cash drains make near‑term balance between reinvestment and shareholder returns more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration & long-term contracts
Cleanaway’s integrated model (collection, transport, processing, disposal) plus multi‑year municipal contracts create recurring, sticky revenue and capture margin across the waste value chain. These structural contracts and owned infrastructure underpin predictable volumes and durable cash flows for 2–6+ months.
Read all positive factors
Cleanaway Waste Management (CWY) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$4.93B
Dividend Yield2.32%
Average Volume (3M)6.42M
Price to Earnings (P/E)38.8
Beta (1Y)0.56
Revenue Growth7.67%
EPS Growth-22.90%
CountryAU
Employees7,900
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)0.05
Shares Outstanding2,241,209,700
10 Day Avg. Volume4,479,847
30 Day Avg. Volume6,418,291
Financial Highlights & Ratios
PEG Ratio-90.63
Price to Book (P/B)1.99
Price to Sales (P/S)1.60
P/FCF Ratio49.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.04Price Target Upside31.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.1
Revenue Forecast (FY)AU$4.20B
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. ...
How the Company Makes Money
Cleanaway primarily makes money by charging fees under contracts and service arrangements to collect, transport, process, treat, recycle, and dispose of waste for customers across Australia. Key revenue streams typically include: (1) collection an...
Cleanaway Waste Management Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The earnings call presents a broadly positive operational and financial momentum: solid top-line growth (13%), double‑digit improvements in key profitability metrics (EBIT +16.9%), an upgraded FY26 EBIT guidance, identified cost savings and synergies that should meaningfully boost FY27 results, and continued investment in safety and digitization. Material negatives include two fatal incidents, one-off cash drag from a large catch‑up tax payment and legacy remediation costs, higher net finance costs from acquisition financing, underperformance in Health Services/OTS and noncash impairments tied to specific assets. On balance the company signals improving performance, credible execution on synergies and a clearer path to stronger free cash flow in H2 and FY27, outweighing the notable but largely one-off or remediable lowlights.Positive Updates
Group Revenue Growth
Net revenue increased 13% to almost $1.9 billion in 1H FY26, driven by disciplined pricing and strategic acquisitions (Citywide, Contract Resources).
Negative Updates
Two Fatal Incidents
Cleanaway reported two fatal incidents at company-owned sites in 1H FY26 (separate operational contexts). Management noted independent safety review found no systemic failures but fatalities remain a material negative outcome and focus area.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Revenue Growth
Net revenue increased 13% to almost $1.9 billion in 1H FY26, driven by disciplined pricing and strategic acquisitions (Citywide, Contract Resources).
Read all positive updates
Company Guidance
Cleanaway upgraded FY26 EBIT guidance to $480–500m (mid‑point implying ~19% y/y EBIT growth) and maintained FY26 CapEx guidance of ≈$415m (lowest CapEx/net revenue ratio in 5 years, includes ~$15m for Contract Resources and ~$21m H1 risk‑reduction spend). H1 operating metrics were strong: net revenue ~ $1.9bn (+13%), EBIT $228m (+16.9%), EBIT margin 12.2% (+40bps), free cash flow $74.2m, ROCE 9.4% (+80bps) and ROIC 6.3% (+60bps); leverage is 2.3x and H1 net finance costs were $73.4m with FY26 net finance cost guidance ≈$155m. Management expects a significantly stronger H2 and into FY27 as a $58.7m catch‑up tax paid in H1 normalizes (H2 instalments ~ $48–53m), underlying adjustment cash impact to be ~ $30m higher y/y (H1 cash impact ~$40m), ~ $5m further H2 integration costs, $3m initial Contract Resources synergies plus $15m in‑year indirect‑cost savings (ramping to ≥$35m annualized in FY27), and operational tails (CDS late‑summer volumes, carbon benefits, OTS/Health recovery) supporting the upgraded guidance; operational safety and tech rollouts include IVMS on ~3,500 heavy vehicles by Dec‑2026 and AI pedestrian detection by mid‑calendar 2026.Cleanaway Waste Management Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
50
Neutral
| 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
Negative
2.31
Price Trends
2.37
Negative
2.46
Negative
2.59
Negative
Market Momentum
-0.02
Positive
46.60
Neutral
29.63
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 2.31 is below the 20-day moving average (MA) of 2.31, below the 50-day MA of 2.37, and below the 200-day MA of 2.59, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | AU$4.83B | 14.22 | 7.97% | 3.11% | -4.99% | 120.98% | |
64 Neutral | AU$4.33B | 18.35 | 47.41% | 3.56% | 0.58% | 25.95% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | AU$8.89B | 9.81 | 7.13% | 2.07% | 18.00% | -2.14% | |
54 Neutral | AU$4.93B | 38.82 | 3.98% | 2.32% | 7.67% | -22.90% | |
54 Neutral | AU$79.90M | -82.07 | 6.56% | ― | 9.57% | -21.00% | |
45 Neutral | AU$11.74M | -0.15 | -51.88% | ― | -9.93% | -1130.30% |
* Industrials Sector Average
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Cleanaway Waste Management Corporate Events
Cleanaway Director Increases Indirect Holding via Dividend Reinvestment
Apr 22, 2026
Cleanaway Waste Management director Jackie McArthur has increased her indirect shareholding through participation in the company’s dividend reinvestment plan. The additional ordinary shares were acquired via two associated entities that hold...
Cleanaway director increases indirect stake via dividend reinvestment
Apr 22, 2026
Cleanaway Waste Management has disclosed a change in the indirect shareholding of director Mark John Schubert, as required under ASX listing rules. Schubert acquired 12,562 ordinary shares through the company’s dividend reinvestment plan at ...
Cleanaway Director Increases Stake via Dividend Reinvestment Plan
Apr 22, 2026
Cleanaway Waste Management director Andrew Michael Kelly has increased his direct holding in the company through participation in its dividend reinvestment plan. On 16 April 2026, Kelly acquired 1,271 ordinary shares at $2.372 per share, lifting h...
Cleanaway to Brief Investors on Refreshed 2026 Strategy
Apr 20, 2026
Cleanaway Waste Management has announced that it will hold an Investor Day, at which management will present a refreshed 2026 strategy briefing to the market. The presentation materials, authorised for release by the board, are intended to update ...
Cleanaway Lists New Shares Issued Under Dividend Plan
Apr 16, 2026
Cleanaway Waste Management has applied for quotation on the ASX of 1,090,728 new ordinary fully paid shares. The new securities were issued on 16 April 2026 under a dividend or distribution plan, incrementally expanding the company’s listed ...
Cleanaway trims FY26 earnings outlook amid Middle East conflict and higher fuel costs
Apr 13, 2026
Cleanaway Waste Management has updated its FY26 earnings outlook to reflect the financial impact of the ongoing conflict in the Middle East, which has driven higher fuel, supplier and logistics costs and reduced activity in its Contract Resources ...
Cleanaway updates interim dividend details and DRP pricing
Mar 24, 2026
Cleanaway Waste Management has issued an updated notification regarding its interim dividend for the six-month period ended 31 December 2025. The company clarified the New Zealand dollar dividend amount, the applicable NZD exchange rate and the pr...
Cleanaway lifts guidance as strong first-half boosts margins and dividend
Feb 25, 2026
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 Cont...
Cleanaway Declares Interim Dividend for Half‑Year to December 2025
Feb 25, 2026
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 shar...
Cleanaway Appoints Vanessa Guthrie to Board, Discloses Shareholding
Feb 1, 2026
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...
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.