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Covanta Holding Corporation (CVA) Stock Fundamental Analysis

USA - NYSE:CVA - Common Stock

20.26
+0.02 (+0.1%)
Last: 11/29/2021, 8:04:50 PM
20.24
-0.02 (-0.1%)
After Hours: 11/29/2021, 8:04:50 PM
Fundamental Rating

1

CVA gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 82 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

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1. Profitability

1.1 Basic Checks

In the past year CVA was profitable.
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 2015 2016 2017 2018 2019 2020 0 100M -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 2015 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 2015 2016 2017 2018 2019 2020 0 10 20 30

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0

2. Health

2.1 Basic Checks

Compared to 1 year ago, CVA has more shares outstanding
Compared to 1 year ago, CVA has a worse debt to assets ratio.
CVA Yearly Shares OutstandingCVA Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
A Debt/Equity ratio of 10.97 is on the high side and indicates that CVA has dependencies on debt 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 2015 2016 2017 2018 2019 2020 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 0.89 indicates that CVA may have some problems paying 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 2015 2016 2017 2018 2019 2020 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

CVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 185.71%, which is quite impressive.
Looking at the last year, CVA shows a small growth in Revenue. The Revenue has grown by 7.17% in the last 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

Based on estimates for the next years, CVA will show a very strong growth in Earnings Per Share. The EPS will grow by 41.68% on average per year.
Based on estimates for the next years, CVA will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
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

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
CVA Yearly Revenue VS EstimatesCVA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0.2 -0.2 0.4 0.6

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 112.56 indicates a quite expensive valuation of CVA.
CVA is valuated expensively when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 61.41, the valuation of CVA can be described as expensive.
When comparing the Price/Forward Earnings ratio of CVA to the average of the S&P500 Index (22.35), we can say CVA is valued expensively.
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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2

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.58%, CVA has a reasonable but not impressive dividend return.
Compared to the average S&P500 Dividend Yield of 2.39, CVA is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.58%

5.2 History

The dividend of CVA decreases each year by -12.93%.
CVA has paid a dividend for at least 10 years, which is 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 2015 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 2015 2016 2017 2018 2019 2020 0 50M -50M 100M -100M 150M
CVA Dividend Payout.CVA Dividend Payout, showing the Payout Ratio.CVA Dividend Payout.PayoutRetained Earnings

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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 N/A
Earnings (Next)03-01 2022-03-01/amc
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.


What is the valuation status of Covanta Holding Corporation (CVA) stock?

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.


Can you provide the financial health for CVA stock?

The financial health rating of Covanta Holding Corporation (CVA) is 1 / 10.


Can you provide the expected EPS growth for CVA stock?

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