Covanta Holding Corporation (CVA) Fundamental Analysis & Valuation

NYSE:CVA

Current stock price

20.26
+0.02 (+0.1%)
At close:
20.24
-0.02 (-0.1%)
After Hours:

This CVA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

0

1. CVA Profitability Analysis

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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0

2. CVA Health Analysis

2.1 Basic Checks

  • CVA has more shares outstanding than it did 1 year ago.
  • 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.
  • A Quick Ratio of 0.89 indicates that CVA may have some problems paying 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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4

3. CVA Growth Analysis

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.
  • 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.
  • 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

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2

4. CVA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 112.56, CVA can be considered very expensive at the moment.
  • CVA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.88.
  • 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 (22.19), 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

  • CVA's 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%

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2

5. CVA Dividend Analysis

5.1 Amount

  • CVA has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average S&P500 Dividend Yield of 1.90, CVA has a dividend comparable with the average S&P500 company.
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 2016 2017 2018 2019 2020 2021 0.2 0.4 0.6 0.8

5.3 Sustainability

  • CVA pays out 180.00% of its income as dividend. 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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CVA Fundamentals: All Metrics, Ratios and Statistics

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 Fundamental Analysis 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.