Casella Waste Systems, Inc. (NASDAQ:CWST) Financial Performance Analysis
- Earnings Per Share (EPS) of $0.15 was reported, falling below the estimated $0.33.
- Revenue for the quarter was $485.4 million, surpassing the estimated $476.9 million.
- The company's financial stability is indicated by a debt-to-equity ratio of approximately 0.07 and a current ratio of about 1.51.
Casella Waste Systems, Inc. (NASDAQ:CWST) is a prominent player in the waste removal services industry. The company provides a range of services, including waste collection, recycling, and disposal. CWST competes with other waste management companies, striving to maintain its position by consistently delivering strong financial performance.
On October 30, 2025, CWST reported its earnings, revealing an earnings per share (EPS) of $0.15, which was below the estimated $0.33. Despite this, the company has shown a pattern of exceeding expectations in previous quarters. For instance, in the third quarter, CWST achieved an EPS of $0.42, surpassing the Zacks Consensus Estimate of $0.34, marking a +23.53% earnings surprise.
CWST's revenue for the quarter was $485.4 million, exceeding the estimated $476.9 million. This aligns with the company's trend of surpassing revenue estimates, as seen in the third quarter when revenue reached $485.35 million, beating the Zacks Consensus Estimate by 1.66%. This represents a significant increase from the $411.63 million reported in the same period last year.
The company's financial metrics indicate a high valuation, with a price-to-earnings (P/E) ratio of approximately 344.49. This suggests that investors are willing to pay a premium for CWST's earnings. The price-to-sales ratio of about 2.88 and enterprise value to sales ratio of approximately 2.84 further reflect the company's valuation in relation to its sales.
CWST maintains a strong financial position with a debt-to-equity ratio of approximately 0.07, indicating low debt levels. The current ratio of about 1.51 suggests that the company has sufficient liquidity to cover its short-term liabilities. These metrics highlight CWST's financial stability and ability to manage its obligations effectively.
| Symbol | Price | %chg |
|---|---|---|
| MHKI.JK | 244 | 0.82 |
| 029960.KQ | 8940 | 0 |
| 9336.T | 3430 | 0 |
| INOV.JK | 141 | -2.13 |
Casella Waste Systems, Inc. (NASDAQ:CWST) Financial Performance Analysis
Casella Waste Systems, Inc. (NASDAQ:CWST) is a prominent player in the waste management services sector, focusing on collection, transfer, disposal, and recycling, primarily in the northeastern United States. The company faces stiff competition from other waste management firms such as Waste Connections, Inc., Clean Harbors, Inc., and Republic Services, Inc., which also offer similar environmental services.
In evaluating Casella's financial health, the Return on Invested Capital (ROIC) emerges as a crucial metric. Casella's ROIC stands at 1.85%, which falls significantly short of its Weighted Average Cost of Capital (WACC) of 8.20%. This discrepancy signals that Casella is not generating adequate returns to cover its cost of capital, posing potential concerns for investors.
On the other hand, Waste Connections, Inc. reports a ROIC of 3.53% and a WACC of 7.23%, leading to a ROIC to WACC ratio of 0.49. This comparison suggests that Waste Connections is more efficient in generating returns on its capital than Casella. Similarly, Clean Harbors, Inc. demonstrates superior performance with a ROIC of 8.20% against a WACC of 9.08%, yielding a ratio of 0.90.
Republic Services, Inc. excels with a ROIC of 8.96% and a WACC of 7.17%, resulting in a ROIC to WACC ratio of 1.25. This indicates that Republic Services is proficient in generating returns well above its cost of capital, indicating efficient capital utilization. Exponent, Inc. leads the pack with a ROIC of 14.27% and a WACC of 7.50%, achieving a ROIC to WACC ratio of 1.90, which underscores its robust financial performance.
Casella Waste Systems, Inc. (NASDAQ:CWST) Financial Performance Analysis
Casella Waste Systems, Inc. (NASDAQ:CWST) is a prominent player in the waste management services sector, focusing on collection, transfer, disposal, and recycling, primarily in the northeastern United States. The company faces stiff competition from other waste management firms such as Waste Connections, Inc., Clean Harbors, Inc., and Republic Services, Inc., which also offer similar environmental services.
In evaluating Casella's financial health, the Return on Invested Capital (ROIC) emerges as a crucial metric. Casella's ROIC stands at 1.85%, which falls significantly short of its Weighted Average Cost of Capital (WACC) of 8.20%. This discrepancy signals that Casella is not generating adequate returns to cover its cost of capital, posing potential concerns for investors.
On the other hand, Waste Connections, Inc. reports a ROIC of 3.53% and a WACC of 7.23%, leading to a ROIC to WACC ratio of 0.49. This comparison suggests that Waste Connections is more efficient in generating returns on its capital than Casella. Similarly, Clean Harbors, Inc. demonstrates superior performance with a ROIC of 8.20% against a WACC of 9.08%, yielding a ratio of 0.90.
Republic Services, Inc. excels with a ROIC of 8.96% and a WACC of 7.17%, resulting in a ROIC to WACC ratio of 1.25. This indicates that Republic Services is proficient in generating returns well above its cost of capital, indicating efficient capital utilization. Exponent, Inc. leads the pack with a ROIC of 14.27% and a WACC of 7.50%, achieving a ROIC to WACC ratio of 1.90, which underscores its robust financial performance.
Casella Waste Systems Reports Strong Q4 Results
Casella Waste Systems, Inc. (NASDAQ:CWST) reported its Q4 results, with both EPS and revenues of $0.21 and $241.8 million coming in better than the consensus estimates of $0.18 and $230.35 million, respectively.
These were a good set of results with the company maintaining margins amid high inflation and continuing to execute on its pricing strategy. Looking ahead, the company has permitted capacity in the Northeast which it expects to begin to bring online in 2023/24, as disposal capacity continues to be problematic for the region.
Management said it is increasing solid waste pricing by 4.5%-5% in 2022, which it believes will offset its internal inflation rate of around 4%. The company noted it has room to further increase pricing with around 70% of collection customers to combat an acceleration in inflation if necessary. As a result, it expects operational initiatives to drive approximately 40bp of EBITDA margin expansion in 2022.
The company expects full 2022-year revenues to range from $980 million to $995 million, compared to the consensus estimate of $970.4 million.
Casella Waste Systems Reports Strong Q4 Results
Casella Waste Systems, Inc. (NASDAQ:CWST) reported its Q4 results, with both EPS and revenues of $0.21 and $241.8 million coming in better than the consensus estimates of $0.18 and $230.35 million, respectively.
These were a good set of results with the company maintaining margins amid high inflation and continuing to execute on its pricing strategy. Looking ahead, the company has permitted capacity in the Northeast which it expects to begin to bring online in 2023/24, as disposal capacity continues to be problematic for the region.
Management said it is increasing solid waste pricing by 4.5%-5% in 2022, which it believes will offset its internal inflation rate of around 4%. The company noted it has room to further increase pricing with around 70% of collection customers to combat an acceleration in inflation if necessary. As a result, it expects operational initiatives to drive approximately 40bp of EBITDA margin expansion in 2022.
The company expects full 2022-year revenues to range from $980 million to $995 million, compared to the consensus estimate of $970.4 million.
