Q3 Decline Revealed for Casella Waste Systems
November 23, 2023
🌧️Trending News
Casella Waste Systems ($NASDAQ:CWST), a leading provider of environmental services, has reported a decline in their third quarter results. The reasons behind this decline are multiple and varied, but can be attributed in part to the reduced demand for their services due to the economic downturn as well as to a decrease in their collection rates.
Additionally, it is likely that the company’s investments in new technologies and expansion initiatives had a negative impact on their financial performance. Casella Waste Systems is a publicly traded company and provides services to residential, commercial, industrial and construction customers throughout the United States and Canada. Their services include waste collection and disposal, recycling, organics processing, secure document destruction, hazardous waste management, and transfer station operations. The company operates a variety of landfills, transfer stations, and waste-to-energy facilities and has been steadily increasing its presence in the market through acquisition and expansion. In recent years, they have also invested heavily in green technologies which have allowed them to offer more sustainable solutions to their customers.
Share Price
On Thursday, shares of CASELLA WASTE SYSTEMS opened at $81.8 and closed at $81.1, revealing a decline of 1.0% from the prior closing price of $81.9. The company has yet to comment on the latest dip in their stock prices, but investors remain optimistic as the company continues to show strong financial performance in spite of the current market conditions. 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 |
| 1.18k | 35.63 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CWST. More…
| Operations | Investing | Financing |
| 222.71 | -983.02 | 934.19 |
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 |
| 2.5k | 1.47k | 17.79 |
Key Ratios Snapshot
Some of the financial key ratios for CWST are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.3% | 15.6% | 7.3% |
| FCF Margin | ROE | ROA |
| 7.6% | 5.3% | 2.2% |
Analysis
GoodWhale has conducted an in-depth analysis of CASELLA WASTE SYSTEMS’s wellbeing. Using our proprietary Star Chart, we determined that CASELLA WASTE SYSTEMS is strong in assets and growth, medium in profitability, and weak in dividend. Based on these criteria, we classify CASELLA WASTE SYSTEMS as a “cheetah” – a company which has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. Among potential investors, we believe that CASELLA WASTE SYSTEMS is an attractive option for those who are looking for higher risks but also higher returns. Despite its weaknesses, we rate CASELLA WASTE SYSTEMS a healthy 8/10 due to its cashflows and debt; making the company capable to safely ride out any crisis without the risk of bankruptcy. 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 reported a decline in Q3, primarily due to decreased volumes and weaker pricing. The company experienced reduced demand from the industrial and commercial sectors, as well as a decrease in the availability of recyclables. Furthermore, the company’s renewable energy business also declined due to lower prices for electricity. The company believes that the situation will improve in the last quarter of the year, although the effects of the pandemic could still linger.
Meanwhile, it is focusing on streamlining its cost structure to make sure it can weather any further declines in demand. Investors should be aware of the risks associated with Casella Waste Systems and monitor the company’s performance for any signs of improvement.
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