Covanta Holding Corporation (CVA) Stock Fundamental Analysis

NYSE:CVA

20.26
+0.02 (+0.1%)
At close: Nov 29, 2021
20.24
-0.02 (-0.1%)
After Hours: 11/29/2021, 8:04:50 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

1

Taking everything into account, CVA scores 1 out of 10 in our fundamental rating. CVA was compared to 81 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of CVA have multiple concerns. While showing a medium growth rate, CVA is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • CVA had positive earnings in the past year.
CVA Yearly Net Income VS EBIT VS OCF VS FCFCVA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 0 100M 200M

1.2 Ratios

Industry RankSector Rank
ROA 0.69%
ROE 11.21%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CVA Yearly ROA, ROE, ROICCVA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 0 10 20 30

1.3 Margins

Industry RankSector Rank
OM 6.19%
PM (TTM) 1.23%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
CVA Yearly Profit, Operating, Gross MarginsCVA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 0 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

0

2. Health

2.1 Basic Checks

  • Compared to 1 year ago, CVA has more shares outstanding
  • CVA has a worse debt/assets ratio than last year.
CVA Yearly Shares OutstandingCVA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 20M 40M 60M 80M 100M
CVA Yearly Total Debt VS Total AssetsCVA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 1B 2B 3B 4B

2.2 Solvency

  • Based on the Altman-Z score of 0.95, we must say that CVA is in the distress zone and has some risk of bankruptcy.
  • CVA has a Debt/Equity ratio of 10.97. This is a high value indicating a heavy dependency on external financing.
Industry RankSector Rank
Debt/Equity 10.97
Debt/FCF N/A
Altman-Z 0.95
ROIC/WACCN/A
WACCN/A
CVA Yearly LT Debt VS Equity VS FCFCVA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • CVA has a Current Ratio of 0.89. This is a bad value and indicates that CVA is not financially healthy enough and could expect problems in meeting its short term obligations.
  • CVA has a Quick Ratio of 0.89. This is a bad value and indicates that CVA is not financially healthy enough and could expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.89
CVA Yearly Current Assets VS Current LiabilitesCVA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 185.71% over the past year.
  • The Revenue has been growing slightly by 7.17% in the past year.
  • CVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.97% yearly.
EPS 1Y (TTM)185.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%450%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y2.81%
Revenue growth 5Y2.97%
Sales Q2Q%9.78%

3.2 Future

  • CVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.68% yearly.
  • CVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y181.76%
EPS Next 2Y88.97%
EPS Next 3Y54.35%
EPS Next 5Y41.68%
Revenue Next Year8.25%
Revenue Next 2Y4.21%
Revenue Next 3Y3.74%
Revenue Next 5Y2.66%

3.3 Evolution

  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
CVA Yearly Revenue VS EstimatesCVA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
CVA Yearly EPS VS EstimatesCVA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0.2 -0.2 0.4 0.6

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 112.56, the valuation of CVA can be described as expensive.
  • CVA is valuated expensively when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 61.41, which means the current valuation is very expensive for CVA.
  • The average S&P500 Price/Forward Earnings ratio is at 28.05. CVA is valued rather expensively when compared to this.
Industry RankSector Rank
PE 112.56
Fwd PE 61.41
CVA Price Earnings VS Forward Price EarningsCVA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.64
CVA Per share dataCVA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • CVA's earnings are expected to grow with 54.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y88.97%
EPS Next 3Y54.35%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. Dividend

5.1 Amount

  • CVA has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
  • CVA's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.58%

5.2 History

  • The dividend of CVA decreases each year by -12.93%.
  • CVA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-12.93%
Div Incr YearsN/A
Div Non Decr YearsN/A
CVA Yearly Dividends per shareCVA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 180.00% of the earnings are spent on dividend by CVA. This is not a sustainable payout ratio.
DP180%
EPS Next 2Y88.97%
EPS Next 3Y54.35%
CVA Yearly Income VS Free CF VS DividendCVA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 0 50M -50M 100M 150M
CVA Dividend Payout.CVA Dividend Payout, showing the Payout Ratio.CVA Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

Covanta Holding Corporation

NYSE:CVA (11/29/2021, 8:04:50 PM)

After market: 20.24 -0.02 (-0.1%)

20.26

+0.02 (+0.1%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)N/A
Earnings (Next)03-01
Inst Owners0%
Inst Owner Change0%
Ins Owners2.46%
Ins Owner Change0%
Market Cap2.80B
Revenue(TTM)2.03B
Net Income(TTM)25.00M
Analysts48
Price Target20.57 (1.53%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.58%
Yearly Dividend0.66
Dividend Growth(5Y)-12.93%
DP180%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 112.56
Fwd PE 61.41
P/S 1.37
P/FCF N/A
P/OCF N/A
P/B 12.54
P/tB N/A
EV/EBITDA 14.64
EPS(TTM)0.18
EY0.89%
EPS(NY)0.33
Fwd EY1.63%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS14.74
BVpS1.62
TBVpSN/A
PEG (NY)0.62
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 0.69%
ROE 11.21%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 6.19%
PM (TTM) 1.23%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y0%
ROICexgc growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 10.97
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.89
Quick Ratio 0.89
Altman-Z 0.95
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)185.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%450%
EPS Next Y181.76%
EPS Next 2Y88.97%
EPS Next 3Y54.35%
EPS Next 5Y41.68%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y2.81%
Revenue growth 5Y2.97%
Sales Q2Q%9.78%
Revenue Next Year8.25%
Revenue Next 2Y4.21%
Revenue Next 3Y3.74%
Revenue Next 5Y2.66%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

Covanta Holding Corporation / CVA FAQ

What is the fundamental rating for CVA stock?

ChartMill assigns a fundamental rating of 3 / 10 to CVA.


Can you provide the valuation status for Covanta Holding Corporation?

ChartMill assigns a valuation rating of 2 / 10 to Covanta Holding Corporation (CVA). This can be considered as Overvalued.


How profitable is Covanta Holding Corporation (CVA) stock?

Covanta Holding Corporation (CVA) has a profitability rating of 4 / 10.


What are the PE and PB ratios of Covanta Holding Corporation (CVA) stock?

The Price/Earnings (PE) ratio for Covanta Holding Corporation (CVA) is 112.56 and the Price/Book (PB) ratio is 12.54.


What is the expected EPS growth for Covanta Holding Corporation (CVA) stock?

The Earnings per Share (EPS) of Covanta Holding Corporation (CVA) is expected to grow by 181.76% in the next year.