Casella Waste (CWST) AI Stock Analysis

• Market Cap: $6.35B
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 416.6
• Beta (1Y): 0.27
• Revenue Growth: 20.54%
• EPS Growth: 106.35%
• Country: US
• Employees: 5,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.42
• Shares Outstanding: 62,505,318
• 10 Day Avg. Volume: 649,727
• 30 Day Avg. Volume: 1,175,317
• PEG Ratio: -9.31
• Price to Book (P/B): 4.06
• Price to Sales (P/S): 4.05
• P/FCF Ratio: 80.68
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 3.94
• Enterprise Value/Gross Profit: 22.66
• Enterprise Value/Ebitda: 18.24
• 1Y Price Target: $116.57
• Price Target Upside: 16.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $105.00 ▲(5.05% Upside)

Casella Waste's overall stock score is driven by strong earnings call results and positive technical indicators, despite challenges in financial performance and valuation concerns. The optimistic outlook and operational efficiency improvements are significant positives, but high valuation metrics and profitability issues temper the overall score.

Positive Factors

Revenue Growth

Record revenue growth indicates strong market demand and effective pricing strategies, enhancing the company's competitive position and future earnings potential.

Acquisition Strategy

Strategic acquisitions expand market presence and revenue base, providing long-term growth opportunities and operational synergies.

Sustainability Leadership

Commitment to sustainability strengthens brand reputation and aligns with growing environmental regulations, supporting long-term business viability.

Negative Factors

Profit Margin Pressure

Decreasing profit margins indicate challenges in cost management and pricing power, potentially impacting long-term profitability.

Cash Flow Concerns

Declining free cash flow may limit the company's ability to invest in growth opportunities and manage debt, affecting financial stability.

Commodity Price Headwinds

Volatility in commodity prices can impact revenue from recycling operations, posing a risk to consistent earnings and cash flow.

Casella Waste Business Overview & Revenue Model

Company Description

Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically integrated solid waste services company in the northeastern United States. It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers. The company provides a range of non-hazardous solid waste services, including collections, transfer stations, and disposal facilities. It also markets recyclable metals, aluminum, plastics, and paper and corrugated cardboard that are processed at its facilities, as well as recyclables purchased from third parties. In addition, the company is involved in commodity brokerage operations. As of January 31, 2022, it owned and/or operated 50 solid waste collection operations, 65 transfer stations, 23 recycling facilities, 8 Subtitle D landfills, 3 landfill gas-to-energy facilities, and 1 landfill permitted to accept construction and demolition materials. Casella Waste Systems, Inc. was founded in 1975 and is headquartered in Rutland, Vermont.

How the Company Makes Money

Casella Waste generates revenue through multiple streams, primarily from its waste collection, recycling, and disposal operations. The company charges fees for its collection services based on the volume and type of waste generated by its customers, which include residential households, commercial businesses, and industrial clients. Additionally, revenue is derived from tipping fees charged at its landfills for waste disposal, as well as from the sale of recyclable materials processed at its recycling facilities. The company also benefits from long-term contracts with municipalities and businesses, providing a stable revenue base. Strategic partnerships with local governments and businesses enhance its market presence and contribute to earnings, alongside investments in technology and infrastructure aimed at improving operational efficiency and sustainability.

Casella Waste Financial Statement Overview

Summary

Casella Waste demonstrates moderate financial health with stable revenue growth but faces challenges in profitability and cash flow generation. The company has improved its leverage position, but declining margins and low return on equity highlight areas for improvement. Continued focus on operational efficiency and cash flow management is essential for future growth.

Income Statement

Casella Waste shows moderate revenue growth with a TTM increase of 4.28% and a previous year growth of 23.15%. However, margins have been declining, with the gross profit margin dropping from 33.36% in 2022 to 17.79% in TTM. Net profit margin is low at 0.64% TTM, indicating profitability challenges. The EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved from 1.68 in 2020 to 0.79 TTM, indicating better leverage management. However, the return on equity has decreased significantly from 25.16% in 2020 to 0.98% TTM, suggesting reduced profitability for shareholders. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Operating cash flow has improved, with a TTM coverage ratio of 1.25, but free cash flow growth is negative at -13.97% TTM, indicating cash generation issues. The free cash flow to net income ratio is moderate at 0.27 TTM, showing some ability to convert income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.80B	1.56B	1.26B	1.09B	889.21M	774.58M
Gross Profit	312.16M	295.04M	261.80M	235.62M	203.22M	168.16M
EBITDA	387.82M	321.52M	274.17M	248.29M	208.78M	154.87M
Net Income	15.26M	13.54M	25.40M	53.08M	41.10M	91.11M
Balance Sheet
Total Assets	3.29B	3.33B	2.54B	1.45B	1.28B	1.19B
Cash, Cash Equivalents and Short-Term Investments	192.65M	383.30M	220.91M	71.15M	33.81M	154.34M
Total Debt	1.23B	1.21B	1.12B	665.33M	616.09M	617.72M
Total Liabilities	1.72B	1.78B	1.51B	951.32M	861.12M	831.76M
Stockholders Equity	1.57B	1.55B	1.02B	497.90M	422.46M	362.14M
Cash Flow
Free Cash Flow	78.31M	78.13M	78.19M	86.35M	59.44M	31.81M
Operating Cash Flow	342.97M	281.36M	233.09M	217.31M	182.74M	139.92M
Investing Cash Flow	-690.70M	-670.61M	-1.01B	-206.92M	-293.15M	-140.03M
Financing Cash Flow	21.41M	551.64M	922.30M	26.95M	-10.12M	150.98M

Casella Waste Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 99.95
• 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 CWST, the sentiment is Neutral. The current price of 99.95 is below the 20-day moving average (MA) of 100.09, above the 50-day MA of 95.47, and below the 200-day MA of 102.92, indicating a neutral trend. The MACD of 1.20 indicates Positive momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CWST.

Casella Waste Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLH	78 Outperform	$13.54B	35.46	14.64%	―	2.85%	-6.27%
WM	76 Outperform	$89.00B	34.81	29.31%	1.50%	15.88%	-3.11%
RSG	72 Outperform	$65.70B	31.54	18.24%	1.11%	4.33%	7.59%
MEG	69 Neutral	$930.44M	-27.45	-4.17%	―	22.77%	44.73%
CWST	69 Neutral	$6.35B	416.63	0.98%	―	20.54%	106.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NVRI	56 Neutral	$1.48B	-8.95	-38.53%	―	-2.91%	-67.18%