Casella Waste Systems Inc (CWST) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Casella Waste Systems's EV/EBITDA of 19.8 is below its 5-year median of 23.0.

P/B above the industry

Casella Waste Systems's price-to-book of 3.97 is above the Electric, Gas, and Sanitary Services median of 3.97.

Trading above fair value

The share price of $98.53 is above our fair value estimate of $93.24.

Margin of safety under 20%

The price is 5.7% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 19.2% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -51.2% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -174% over the last twelve months, against a 5-year average of -38.7% a year.

Growing faster than the industry

Revenue grew 13.0% over the last twelve months; the Electric, Gas, and Sanitary Services median is 5.5%.

Guidance raised

Casella Waste Systems raised its fiscal year 2026 Revenues outlook on Aug 6, 2026.

Gross margin slipping

Gross margin was 32.9% over the last twelve months, against 33.7% a year earlier.

Return on equity under 15%

Return on equity was -0.7% over the last twelve months and averaged 5.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 1.5%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Casella Waste Systems's return on equity of -0.7% is above the Electric, Gas, and Sanitary Services median of -16.5%.

Earnings shrank over 5 years

Net income shrank 38.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -0.6% over the last twelve months, against a 5-year average of 2.6%.

Net margin above the industry

Casella Waste Systems's net margin of -0.6% is above the Electric, Gas, and Sanitary Services median of -6.7%.

High debt

Debt is 87.5% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 149% five years ago to 87.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 24.5% of total debt.

Interest not well covered

Operating income covers interest expense 0.8 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.95 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.44; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Casella Waste Systems has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.