Covanta Holding Corporation (CVA)
Common Stock
We assign a fundamental rating of 1 out of 10 to CVA. CVA was compared to 84 industry peers in the Commercial Services & Supplies industry. CVA may be in some trouble as it scores bad on both profitability and health. CVA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CVA had positive earnings in the past year.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The number of shares outstanding for CVA has been increased compared to 1 year ago.
The debt/assets ratio for CVA is higher compared to a year ago.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACCN/A
WACCN/A
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
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.
The Revenue has been growing slightly by 2.97% on average over the past years.
EPS 1Y (TTM)185.71%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q450%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y2.81%
Revenue growth 5Y2.97%
Revenue growth Q2Q9.78%
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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 112.56 indicates a quite expensive valuation of CVA.
When comparing the Price/Earnings ratio of CVA to the average of the S&P500 Index (28.06), we can say CVA is valued 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 20.72. CVA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.56 | ||
| Fwd PE | 61.41 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.64 |
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.
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%
5. Dividend
5.1 Amount
CVA has a Yearly Dividend Yield of 1.58%.
Compared to the average S&P500 Dividend Yield of 2.41, CVA is paying slightly less dividend.
| Industry Rank | Sector 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
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%
Covanta Holding Corporation
NYSE:CVA (11/29/2021, 7:04:50 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.56 | ||
| Fwd PE | 61.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 11.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.19% | ||
| PM (TTM) | 1.23% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.97 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)185.71%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y181.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.17%
Revenue growth 3Y2.81%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y