CWST Stock Intrinsic Value – Casella Waste Systems’ Latest Acquisition Proves Value Accretive & Boosts Performance
May 13, 2023
Trending News ☀️
Casella Waste Systems ($NASDAQ:CWST) has recently made an acquisition that has proven to be value accretive and has boosted performance. Casella is a leading provider of resource management services, operating a portfolio of solid waste, recycling and organics collection, processing, and disposal businesses across the United States. Their services include collection and hauling of solid waste, recycling, organics, and specialized services for hazardous and medical waste. The company owns and operates an integrated waste services platform with landfills, material recovery facilities, transfer stations, and other related facilities. This acquisition will help Casella become the leading provider of waste-to-energy solutions in the United States, furthering its position as a premier environmental services provider.
The acquisition is expected to be accretive to cash flow and increase value for shareholders. It is also expected to increase Casella’s ability to achieve its strategic objectives of expanding geographically and growing the core business. Overall, the acquisition is a very positive move for Casella Waste Systems. It demonstrates the company’s commitment to delivering value for its shareholders and improving performance.
Market Price
On Friday, Casella Waste Systems announced the acquisition of a waste and recycling company, in a move that proves value accretive and boosts performance. The stock opened at $94.2 and closed at $94.5, up by 0.2% from the previous closing price of 94.3. This acquisition further demonstrates Casella’s long-term strategy of expansion and diversification in the waste and recycling industry. The new business will provide Casella with access to additional resources, technologies and markets, enabling them to improve their existing operations and expand their services.
In addition, it is expected to bring in significant cost-savings and will open up new growth opportunities for the company. This acquisition is expected to have a positive impact on Casella’s performance in the short and long-term, creating a platform for sustained growth in the coming years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CWST. More…
| Total Revenues | Net Income | Net Margin |
| 1.11k | 52.44 | 5.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CWST. More…
| Operations | Investing | Financing |
| 208.68 | -162.12 | 1.08 |
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 |
| 1.42k | 918.24 | 9.67 |
Key Ratios Snapshot
Some of the financial key ratios for CWST are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.5% | 16.3% | 8.7% |
| FCF Margin | ROE | ROA |
| 6.5% | 12.2% | 4.3% |
Analysis – CWST Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of CASELLA WASTE SYSTEMS’s wellbeing. After much deliberation and consideration, our proprietary Valuation Line determined that the fair value of CASELLA WASTE SYSTEMS shares is around $85.7. We believe this is due to the recent positive performance of the company and positive market sentiment surrounding it. We are confident that with continued positive performance and market sentiment, the stock of CASELLA WASTE SYSTEMS will soon reach its fair value. More…
Peers
The competition among Casella Waste Systems Inc and its competitors is fierce. Each company is vying for a share of the waste management market, and each has its own strengths and weaknesses.
However, it faces competition from smaller, more nimble companies such as Renewi PLC and Waste Connections Inc. Macau Capital Investments Inc is a new entrant to the market, and it is unclear how it will impact the competition.
– Renewi PLC ($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
Casella Waste Systems Inc. (CWST) has been performing well financially, with its most recent acquisition contributing to its success. The company’s acquisition of the waste management business of Texas Disposal Systems, Inc. contributed to these results, providing additional economies of scale and cost savings. Analysts continue to be bullish on the stock, citing its strong fundamentals and diversified revenue stream.
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