Latest news with #CleanawayWasteManagementLimited
Yahoo
02-05-2025
- Business
- Yahoo
Cleanaway Waste Management (ASX:CWY) shareholders have earned a 9.4% CAGR over the last five years
When you buy and hold a stock for the long term, you definitely want it to provide a positive return. Furthermore, you'd generally like to see the share price rise faster than the market. But Cleanaway Waste Management Limited (ASX:CWY) has fallen short of that second goal, with a share price rise of 43% over five years, which is below the market return. Unfortunately the share price is down 3.7% in the last year. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. We check all companies for important risks. See what we found for Cleanaway Waste Management in our free report. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Over half a decade, Cleanaway Waste Management managed to grow its earnings per share at 6.3% a year. This EPS growth is reasonably close to the 7% average annual increase in the share price. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. In fact, the share price seems to largely reflect the EPS growth. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that Cleanaway Waste Management has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Cleanaway Waste Management will grow revenue in the future. It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Cleanaway Waste Management the TSR over the last 5 years was 57%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! While the broader market gained around 10% in the last year, Cleanaway Waste Management shareholders lost 1.7% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 9%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. If you would like to research Cleanaway Waste Management in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company. Of course Cleanaway Waste Management may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. 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.
Yahoo
21-02-2025
- Business
- Yahoo
Cleanaway Waste Management (ASX:CWY) Is Increasing Its Dividend To A$0.028
Cleanaway Waste Management Limited's (ASX:CWY) dividend will be increasing from last year's payment of the same period to A$0.028 on 10th of April. Despite this raise, the dividend yield of 2.2% is only a modest boost to shareholder returns. View our latest analysis for Cleanaway Waste Management Even a low dividend yield can be attractive if it is sustained for years on end. Prior to this announcement, Cleanaway Waste Management was paying out 76% of earnings and more than 75% of free cash flows. This indicates that the company is more focused on returning cash to shareholders than growing the business, but we don't think that there are necessarily signs that the dividend might be unsustainable. The next year is set to see EPS grow by 78.5%. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 48% which brings it into quite a comfortable range. The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2015, the dividend has gone from A$0.015 total annually to A$0.056. This implies that the company grew its distributions at a yearly rate of about 14% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time. Investors could be attracted to the stock based on the quality of its payment history. Cleanaway Waste Management has impressed us by growing EPS at 6.3% per year over the past five years. EPS has been growing at a reasonable rate, although with most of the profits being paid out to shareholders, growth prospects could be more limited in the future. Overall, we always like to see the dividend being raised, but we don't think Cleanaway Waste Management will make a great income stock. In the past the payments have been stable, but we think the company is paying out too much for this to continue for the long term. We would probably look elsewhere for an income investment. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 13 Cleanaway Waste Management analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Cleanaway Waste Management not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. 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
10-02-2025
- Business
- Yahoo
Is It Time To Consider Buying Cleanaway Waste Management Limited (ASX:CWY)?
Cleanaway Waste Management Limited (ASX:CWY), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the ASX over the last few months, increasing to AU$2.92 at one point, and dropping to the lows of AU$2.64. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Cleanaway Waste Management's current trading price of AU$2.66 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Cleanaway Waste Management's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Cleanaway Waste Management The stock seems fairly valued at the moment according to our valuation model. It's trading around 14% below our intrinsic value, which means if you buy Cleanaway Waste Management today, you'd be paying a reasonable price for it. And if you believe that the stock is really worth A$3.11, then there's not much of an upside to gain from mispricing. What's more, Cleanaway Waste Management's share price may be more stable over time (relative to the market), as indicated by its low beta. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Cleanaway Waste Management's earnings over the next few years are expected to increase by 82%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has already priced in CWY's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping an eye on CWY, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here. If you are no longer interested in Cleanaway Waste Management, 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
