Logo image of CVA

Covanta Holding Corporation (CVA) Stock Fundamental Analysis

USA - New York Stock Exchange - 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 80 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

  • 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 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

More info and screens

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 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.
  • 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 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 2016 2017 2018 2019 2020 200M 400M 600M 800M 1B

More info and screens

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.
  • CVA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
  • 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 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

More info and screens

2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 112.56 indicates a quite expensive valuation of CVA.
  • Compared to an average S&P500 Price/Earnings ratio of 28.60, CVA is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 61.41, the valuation of CVA can be described as expensive.
  • The average S&P500 Price/Forward Earnings ratio is at 25.83. 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.
  • A more expensive valuation may be justified as CVA's earnings are expected to grow with 54.35% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y88.97%
EPS Next 3Y54.35%

More info and screens

2

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.58%, CVA has a reasonable but not impressive dividend return.
  • 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

More info and screens

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.