CASELLA WASTE SYSTEMS Reports 2.1% Increase in Revenue for FY2023 Second Quarter
July 29, 2023
🌧️Earnings Overview
For the second quarter of FY2023, CASELLA WASTE SYSTEMS ($NASDAQ:CWST) reported total revenue of USD 289.6 million, a year-over-year increase of 2.1%. Unfortunately, net income was USD 5.5 million, a sharp 69.2% decline year over year.
Analysis
GoodWhale has conducted an analysis of CASELLA WASTE SYSTEMS’ fundamentals and determined that, based on its Risk Rating, it is a medium risk investment regarding financial and business aspects. This means that, while there are some risks that come with investing in the company, there are also potential rewards and more safety than with a high-risk investment. In addition, GoodWhale has detected one risk warning in the company’s income sheet. Those who are interested in learning more about the warning can register with GoodWhale for further information. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CWST. More…
| Total Revenues | Net Income | Net Margin |
| 1.12k | 40.13 | 5.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CWST. More…
| Operations | Investing | Financing |
| 208.26 | -693.53 | 910.68 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CWST. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.42k | 1.41k | 8.66 |
Key Ratios Snapshot
Some of the financial key ratios for CWST are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.6% | 15.3% | 7.1% |
| FCF Margin | ROE | ROA |
| 7.3% | 9.9% | 2.1% |
Peers
The competition among Casella Waste Systems Inc and its competitors is fierce. Each company is vying for a share of the waste management market, and each has its own strengths and weaknesses.
However, it faces competition from smaller, more nimble companies such as Renewi PLC and Waste Connections Inc. Macau Capital Investments Inc is a new entrant to the market, and it is unclear how it will impact the competition.
– Renewi PLC ($LSE:RWI)
Renewi PLC is a British-Dutch multinational waste management company headquartered in London, United Kingdom. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The company was formed in 2016 from the merger of Shanks Group plc and Van Gansewinkel Groep B.V.
Renewi PLC has a market cap of 430.77M as of 2022 and a Return on Equity of 26.36%. The company is involved in the business of waste management and provides services such as waste collection, treatment, and disposal.
– Waste Connections Inc ($NYSE:WCN)
Waste Connections, Inc. is an integrated solid waste services company that provides waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets in the United States. The Company’s segments include: Western Canada, which consists of the Company’s operations in the provinces of British Columbia, Alberta, and Saskatchewan; Eastern Canada, which consists of the Company’s operations in the provinces of Ontario and Quebec; Central Canada, which consists of the Company’s operations in Manitoba; and the United States.
Summary
Investing in CASELLA WASTE SYSTEMS can be a mixed bag. In the second quarter of FY2023, total revenue saw a slight 2.1% year-on-year increase, but net income decreased by an alarming 69.2%. This could suggest that while the company is still able to bring in revenue, it may be struggling to turn that into profit. Investors should watch out for signs that the company is able to reduce its costs and improve its profitability going forward.
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