Casella Waste Systems (NASDAQ:CWST) and Its Competitors Financial Analysis

Casella Waste Systems (NASDAQ: CWST) is one of 20 publicly-traded companies in the “Waste Management, Disposal & Recycling Services” industry, but how does it contrast to its peers? We will compare Casella Waste Systems to similar companies based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

79.3% of Casella Waste Systems shares are held by institutional investors. Comparatively, 52.2% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by institutional investors. 11.5% of Casella Waste Systems shares are held by company insiders. Comparatively, 12.3% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Casella Waste Systems and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casella Waste Systems 0 2 2 0 2.50
Casella Waste Systems Competitors 47 284 595 15 2.61

Casella Waste Systems currently has a consensus target price of $17.00, suggesting a potential downside of 26.15%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 6.16%. Given Casella Waste Systems’ peers stronger consensus rating and higher possible upside, analysts plainly believe Casella Waste Systems has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Casella Waste Systems and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Casella Waste Systems $565.03 million -$6.84 million -17.71
Casella Waste Systems Competitors $850.65 million $28.19 million 169.99

Casella Waste Systems’ peers have higher revenue and earnings than Casella Waste Systems. Casella Waste Systems is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Casella Waste Systems has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Casella Waste Systems’ peers have a beta of 0.62, indicating that their average stock price is 38% less volatile than the S&P 500.

Profitability

This table compares Casella Waste Systems and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Casella Waste Systems -9.09% -56.99% 4.28%
Casella Waste Systems Competitors -6.70% -4.94% -1.74%

Summary

Casella Waste Systems peers beat Casella Waste Systems on 10 of the 13 factors compared.

Casella Waste Systems Company Profile

Casella Waste Systems, Inc. is a solid waste services company. The Company provides resource management services to residential, commercial, municipal and industrial customers, primarily in the areas of solid waste collection and disposal, transfer, recycling and organics services. It manages its solid waste operations on a geographic basis through two regional operating segments: Eastern and Western regions, each of which provides a range of solid waste services, and its recycling and commodity brokerage operations through its Recycling segment. Organics services, ancillary operations and industrial services are included in its Other segment. As of January 31, 2017, the Company owned and/or operated 32 solid waste collection operations, 46 transfer stations, 18 recycling facilities, nine Subtitle D landfills, four landfill gas-to-energy facilities and one landfill permitted to accept construction and demolition (C&D) materials.

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