Refuse Systems
Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically integrated solid waste services company in the northeastern United States. It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers. The company provides non-hazardous solid waste services, including collections, transfer stations, and disposal facilities. In addition, it markets materials, including fibers, corrugated cardboard, newsprint, plastics, glass, ferrous, and aluminum metals. As of January 31, 2023, the company owns and operates 49 solid waste collection operations, 65 transfer stations, 26 recycling facilities, 8 Subtitle D landfills, 3 landfill gas-to-energy facilities, and 1 landfill permitted to accept construction and demolition materials. Casella Waste Systems, Inc. was founded in 1975 and is headquartered in Rutland, Vermont.
Sector
Discounted Cash Flow Valuation of Casella Waste Systems Inc
Growth
%
%
Discount
%
%
Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $57.41M | $67.97M | $79.45M | $91.69M | $104.5M | $117.4M | $130.3M | $142.6M | $154M | $164M | $172.2M | $1.722B |
DCF | $59.1M | $60.08M | $60.29M | $59.73M | $58.39M | $56.34M | $53.62M | $50.35M | $46.62M | $42.57M | $425.7M | |
Value | $972.7M |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | -2.4% | -1.2% | -3.6% | 0.97% | 4.3% | 12% | 4.6% | 4.9% | 2% | 1.3% |
ROA | 4.9% | 7.1% | -2% | 5.4% | 5.7% | 5% | 6.1% | 6.6% | 3.2% | 3.1% |
ROE | 60% | 28% | 58% | -41% | 26% | 25% | 9.7% | 11% | 2.5% | 1.7% |
The average Net Margin over the past 5 years is +4.75%.
The trend of Net Margin over the past 5 years is 0%.
The average ROA over the past 5 years is +5.32%.
The trend of ROA over the past 5 years is -0.21%.
The average ROE over the past 5 years is +5.54%.
The trend of ROE over the past 5 years is +4.41%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 25.53 | 19.60 | 11.42 | 11.48 | 37.88 | 17.25 | 9.46 | 6.98 | 13.80 | 19.29 |
Debt Equity | -24.33 | -20.93 | -12.87 | -34.52 | 4.22 | 1.52 | 1.33 | 1.21 | 1.06 | 1.08 |
MIN | ||||||||||
Graham Stability | - | - | - | - | - | 100% | 95% | 97% | 41% | 41% |
The Debt/FCF trailing twelve month is 19.29.
The trend of Debt/FCF over the past 5 years is -2.54.
Graham’s Stability measure stands at 0.41.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 12% | 14% | 18% | 17% | 2.1% |
Net Income | - | 32% | -35% | -52% | -100% |
Stockholders Equity | - | - | 41% | 110% | -27% |
FCF | 17% | 10% | 35% | -9.5% | 0.97% |
The Revenue CAGR over the past 5 years is +13.87%.
The trend of Revenue growth rate over the past 5 years is +2.11%.
The Earnings CAGR over the past 5 years is +31.66%.
The trend of Earnings growth rate over the past 5 years is -104.91%.
The Equity CAGR over the past 5 years is -.
The trend of Equity growth rate over the past 5 years is -26.82%.
The FCF CAGR over the past 5 years is +10.43%.
The trend of FCF growth rate over the past 5 years is +0.97%.