Latest news with #CWST
Business Insider
04-06-2025
- Business
- Business Insider
William Blair Sticks to Their Buy Rating for Casella Waste (CWST)
William Blair analyst Trevor Romeo reiterated a Buy rating on Casella Waste (CWST – Research Report) today. The company's shares closed today at $115.93. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Romeo covers the Industrials sector, focusing on stocks such as Korn Ferry, Casella Waste, and Kforce. According to TipRanks, Romeo has an average return of 4.0% and a 72.73% success rate on recommended stocks. Casella Waste has an analyst consensus of Strong Buy, with a price target consensus of $129.50. CWST market cap is currently $7.42B and has a P/E ratio of 533.42. Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CWST in relation to earlier this year. Last month, John Casella, the CEO of CWST sold 18,093.00 shares for a total of $2,168,807.91.
Yahoo
30-05-2025
- Business
- Yahoo
1 Industrials Stock Worth Investigating and 2 to Ignore
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 11.8% over the past six months. This performance was worse than the S&P 500's 2.2% decline. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here is one resilient industrials stock at the top of our wish list and two best left ignored. Market Cap: $7.32 billion Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ:CWST) offers waste management services for businesses, residents, and the government. Why Is CWST Not Exciting? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 4 percentage points Performance over the past two years was negatively impacted by new share issuances as its earnings per share were flat while its revenue grew At $115 per share, Casella Waste Systems trades at 95.5x forward P/E. Check out our free in-depth research report to learn more about why CWST doesn't pass our bar. Market Cap: $16.86 billion Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military. Why Does SNA Give Us Pause? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth 6.3 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Diminishing returns on capital suggest its earlier profit pools are drying up Snap-on's stock price of $322.36 implies a valuation ratio of 16.1x forward P/E. Dive into our free research report to see why there are better opportunities than SNA. Market Cap: $11.11 billion Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services. Why Do We Watch DRS? Demand is greater than supply as the company's 54.4% average backlog growth over the past two years shows it's securing new contracts and accumulating more orders than it can fulfill Incremental sales significantly boosted profitability as its annual earnings per share growth of 17.5% over the last two years outstripped its revenue performance Free cash flow margin increased by 4.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders Leonardo DRS is trading at $41.68 per share, or 38.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
CWST Q1 Earnings Call: Organic Growth, M&A Integration, and Margin Pressures Shape Outlook
Waste management company Casella (NASDAQ:CWST) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 22.3% year on year to $417.1 million. The company expects the full year's revenue to be around $1.79 billion, close to analysts' estimates. Its non-GAAP profit of $0.19 per share was 85% above analysts' consensus estimates. Is now the time to buy CWST? Find out in our full research report (it's free). Revenue: $417.1 million vs analyst estimates of $404.6 million (22.3% year-on-year growth, 3.1% beat) Adjusted EPS: $0.19 vs analyst estimates of $0.10 (85% beat) Adjusted EBITDA: $80.16 million vs analyst estimates of $83.98 million (19.2% margin, 4.5% miss) The company reconfirmed its revenue guidance for the full year of $1.79 billion at the midpoint EBITDA guidance for the full year is $417.5 million at the midpoint, in line with analyst expectations Operating Margin: 0.8%, down from 2% in the same quarter last year Free Cash Flow was $29.06 million, up from -$2.41 million in the same quarter last year Organic Revenue rose 3.1% year on year (2.1% in the same quarter last year) Market Capitalization: $7.21 billion Casella Waste Systems reported first quarter results that exceeded Wall Street's revenue and non-GAAP profit expectations, driven by a combination of organic growth and the ongoing integration of several recent acquisitions. Management attributed the quarter's performance to strong pricing in its solid waste segment, organic growth in landfill and resource solutions operations, and continued execution on cost-efficiency initiatives, despite challenging winter weather in the Northeast leading to volume softness in certain areas. Looking ahead, Casella's leadership reconfirmed its full-year guidance, emphasizing a robust M&A pipeline and ongoing operational improvements as the key drivers of future performance. CEO John Casella cited the company's resilience to macroeconomic uncertainty and low exposure to tariffs, noting, 'The nature of our solid waste business reduces the impact of economic swings and our domestic focus limits exposure to tariffs.' Management remains focused on disciplined acquisition strategy, internalization of volumes, and the further ramp-up of its recycling infrastructure. Casella's management highlighted the impact of pricing discipline, acquisition integration, and operational efficiency on the latest quarter's results, while also acknowledging some headwinds in waste volumes due to seasonal and economic factors. Solid waste pricing momentum: Casella achieved 5.8% price increases in its collection business, with pricing outpacing inflation and commercial customer pricing performing particularly well. Management noted that most pricing actions for the year were implemented early, supporting margin resilience. Landfill volume recovery: Landfill operations saw organic growth above 7%, with volume increases attributed to both recapturing construction and demolition (C&D) waste in New York and strategic improvements to internalize more waste. Management expects these trends to continue as market conditions normalize. Resource Solutions expansion: The Resource Solutions segment benefited from the ramp-up at the upgraded Willimantic recycling facility and double-digit organic growth in national accounts, fueled by new business wins in key customer segments. Acquisition integration progress: Casella closed four acquisitions year-to-date, with most integration benefits coming from operational synergies and densification of routes. Management cited a dedicated integrations team and ongoing IT upgrades as central to achieving further efficiency gains. Operational investments: The company continued converting its truck fleet to automation, with plans for 40 additional automated trucks in 2025, aiming to drive cost reductions and enhance route optimization. Management views these initiatives as key to sustaining margin expansion in legacy operations. Management's outlook for the year is underpinned by continued pricing discipline, the successful integration of recent acquisitions, and investments in operational efficiencies, while closely monitoring macroeconomic and seasonal volume trends. M&A pipeline and integration: Casella plans to pursue additional acquisition opportunities in its core Northeast and Mid-Atlantic markets, with a $500 million revenue pipeline and sufficient liquidity to execute. Management expects these deals to further densify routes and improve margins. Internalization and infrastructure: Initiatives to internalize more waste into company-owned landfills and investments in recycling and automation technology are expected to drive incremental EBITDA and long-term competitive advantage. External risks: Management highlighted limited exposure to tariffs and macroeconomic swings but acknowledged that volume growth could be impacted by weather and regional construction activity. The team remains vigilant about cost inflation and vendor pricing. Adam Bubes (Goldman Sachs): Asked about the sustainability of landfill volume growth and capacity utilization. Management explained that about a third of volume gains were from recaptured C&D waste, with significant untapped capacity—especially at the McKean landfill—reserved as a long-term buffer. Trevor Romeo (William Blair): Inquired about the durability of above-budget pricing and integration synergies from acquisitions. Management stated most pricing is locked in early, with commercial collection outperforming, and integration teams delivering ahead of pro forma expectations, though IT system upgrades remain ongoing. James Schumm (TD Cowen): Sought clarification on the interplay between lower disposal volumes and higher landfill volumes. Casella attributed this to weak roll-off activity, especially in the Northeast, but noted landfill growth reflected both internalization efforts and recovering C&D markets. Stephanie Moore (Jefferies): Asked about the financial impact of internalizing waste after acquisitions. Management said benefits are acquisition-specific and phased in over time due to existing contracts and infrastructure constraints, making it challenging to generalize EBITDA impact per internalization percentage. Timna Tanners (Wolfe Research): Questioned why guidance was not raised despite a strong quarter and additional acquisition revenue. Management responded that it is too early in the year to adjust guidance, preferring to maintain a cautious stance amid continued macro uncertainty. In the quarters ahead, the StockStory team will be focused on (1) the pace and efficiency of acquisition integration, particularly how well Casella converts new acquisitions into margin accretive operations, (2) the ramp-up and performance of automated fleet and recycling infrastructure upgrades, and (3) the sustainability of pricing power in the face of fluctuating waste volumes and external cost pressures. Execution on internalization initiatives and progress in the M&A pipeline will also be closely monitored. Casella Waste Systems currently trades at a forward P/E ratio of 94.1×. Should you double down or take your chips? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
04-04-2025
- Business
- Yahoo
What Is Casella Waste Systems, Inc.'s (NASDAQ:CWST) Share Price Doing?
Casella Waste Systems, Inc. (NASDAQ:CWST), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. The company's trading levels have approached the yearly peak, following the recent bounce in the share price. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, what if the stock is still a bargain? Let's examine Casella Waste Systems's valuation and outlook in more detail to determine if there's still a bargain opportunity. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The stock is currently trading at US$115 on the share market, which means it is overvalued by 38% compared to our intrinsic value of $83.35. Not the best news for investors looking to buy! Furthermore, Casella Waste Systems's share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it's there, it may be hard to fall back down into an attractive buying range. See our latest analysis for Casella Waste Systems Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Casella Waste Systems' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has well and truly priced in CWST's positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe CWST should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping tabs on CWST for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the positive outlook is encouraging for CWST, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. If you'd like to know more about Casella Waste Systems as a business, it's important to be aware of any risks it's facing. For example, we've found that Casella Waste Systems has 4 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis. If you are no longer interested in Casella Waste Systems, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
30-03-2025
- Business
- Yahoo
Is Casella Waste Systems, Inc. (CWST) Among the Best Waste Management Stocks to Invest In Now?
We recently compiled a list of the 12 Best Waste Management Stocks to Invest In Now. In this article, we are going to take a look at where Casella Waste Systems, Inc. (NASDAQ:CWST) stands against the other waste management stocks. Waste management stocks include those companies that provide supporting environmental, engineering, and consulting services, as well as those that gather, process, store, transport, recycle, and dispose of waste products. The waste management industry is expanding rapidly. The market was worth $1,293.70 billion in 2022 and is projected to grow at a CAGR of 5.4% between 2023 and 2030, according to Grand View Research. Strict laws like the Resource Conservation and Recovery Act and the Waste Shipment Regulation are anticipated to drive the market to improve this service. In 2022, the collection segment held a dominant market share of over 62.0%. The industrial waste industry dominated the market, accounting for more than 85.9% in 2022. It is anticipated that during the projection period, the e-waste segment will grow at the quickest CAGR of 7.4%. Asia Pacific led the industry, accounting for more than 24.5% of the market in 2022. The projection period is anticipated to see the Middle East and Africa grow at a compound annual growth rate (CAGR) of 5.6%. According to Debra Reinhart, a Board of Scientific Counselors member for the EPA: 'It's a difficult industry, but it is profitable if it's done right.' Waste management is critical to promoting the growth of sustainable energy by reducing environmental impact, recovering valuable materials, and increasing resource efficiency. According to Deloitte's insights, land, water, and waste management must all be integrated in order to achieve a sustainable energy transition. Repurposing brownfield sites, abandoned power stations, and landfills for solar or battery storage maximizes land usage, while spatial mapping technologies reduce environmental effects. Water efficiency can be improved by recycling wastewater, using brackish and greywater, and switching to closed-cycle cooling systems. Advanced sorting, material recovery from retired equipment, and robotics are all waste reduction solutions that prioritize safety and efficiency. Moreover, cross-industry collaboration promotes industrial symbiosis, resulting in maximum resource utilization. Circular design concepts help to increase product life and facilitate disassembly. Increased renewable energy efficiency reduces land and waste footprints. Smart sensors and IoT technology reduce water leaks, while industrial sites' centralized recycling networks reduce freshwater extraction and wastewater outflow. These methods promote a sustainable and resource-efficient energy transition. According to S&P Global's October 2, 2024, report, private equity and venture capital investments in the waste management sector were projected to decline further in 2024 as investors moved their focus to circular economy solutions rather than traditional waste services. Global PE and VC-backed deals totaled $247.2 million in 2024, accounting for only 7% of the $3.62 billion reported in 2023, according to S&P Global Market Intelligence. The sector has steadily declined since peaking at $8.87 billion in 2021. The number of transactions declined in 2024 when compared to 2023 and 2022. In Q3 2024, the deal value was $8.3 million, down from $2.42 billion in Q3 2023, with only six transactions compared to 22 in the same period last year. The report further mentioned that eleven deals were announced in the United States and Canada, with seven deals in Europe and Asia-Pacific each. In terms of deal value, the United States and Canada received $116 million in announced investments, while Europe raised $104.5 million. Waste management enterprises in the Asia-Pacific received $26.7 million in private equity financing. Looking forward, as per the UN's Global Waste Management Outlook 2024, municipal solid waste generation is projected to jump from 2.1 billion tonnes in 2023 to 3.8 billion tonnes by 2050. In 2020, direct waste management expenses reached $252 billion, but hidden costs from pollution and climate change boosted the total to $361 billion. Without intervention, annual costs could nearly quadruple to $640.3 billion by 2050. Implementing waste management methods may reduce net expenses to $270.2 billion, whereas a circular economy could result in a $108.5 billion yearly net gain. The report calls on governments, businesses, and citizens to take action to mitigate rising prices and environmental impact. Aerial shot of a recycling plant and its surrounding environment, highlighting the company's commitment to environmental sustainability. We sifted through holdings of waste management ETFs and online rankings to form an initial list of 30 Waste Management stocks. From the resultant dataset, we chose the top 12 stocks most favored by hedge funds, using Insider Monkey's database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's Revenue Growth Rate (year-over-year) as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Investors: 24 Casella Waste Systems, Inc. (NASDAQ:CWST) is a solid trash collection firm that offers resource management services to residential, commercial, municipal, and industrial clients. The company's reportable geographical segments include the Eastern, Western, and Mid-Atlantic regions through the Resource Solutions business. It earns the most revenue from the Western region segment. The firm provides recycling, collection, organics, energy, landfills, special waste, and professional services. The stock is up over 8% year to date, making it among the Best Waste Management Stocks. Casella Waste Systems, Inc. (NASDAQ:CWST) had notable acquisition activity in 2024, closing eight acquisitions for more than $200 million in annualized revenue, followed by three more in early 2025 at around $40 million. In Q4 2024, the firm boosted revenue by 18.9% year on year to $427.5 million, while adjusted EBITDA jumped by 15.6% to $95 million, extending a three-year streak that included adjusted EBITDA growth of more than 20%. Adjusted free cash flow improved by 23% to $158.3 million, exceeding expectations. The Resource Solutions segment rose by 9.7%, while the collection company increased its adjusted EBITDA margin over 100 basis points, showing improved operational efficiency and profitability. Stifel boosted Casella Waste Systems, Inc. (NASDAQ:CWST)'s price objective to $129 from $127, maintaining a Buy recommendation on the stock. FY25 is expected to be 'another year of double-digit growth,' driven by the roll-over impact of FY24 acquisitions, $40 million in annualized revenues closed year-to-date, and sustained mid-single-digit organic growth, according to the analyst in a post-earnings note. Overall, CWST ranks 6th on our list of the Best Waste Management Stocks to Invest In Now. While we acknowledge the potential for CWST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CWST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
