📊 CWST Key Takeaways
Is Casella Waste Systems Inc. (CWST) a Good Investment?
Casella Waste demonstrates solid operational cash generation with $329.8M operating cash flow supporting modest free cash flow of $84.7M, but profitability deterioration is concerning with net income declining 41.9% YoY and net margins contracting to 0.4%. The company maintains adequate leverage ratios and liquidity, but weak earnings quality and flat revenue growth signal operational headwinds that require resolution.
Casella Waste Systems shows solid operating cash generation, positive free cash flow, and acceptable liquidity, which supports the business despite a leveraged balance sheet. However, flat revenue, very thin operating and net margins, and a sharp decline in net income and EPS point to weak earnings quality and limited near-term profitability. The fundamentals suggest a stable but not especially strong setup unless margin recovery improves materially.
Why Buy Casella Waste Systems Inc. Stock? CWST Key Strengths
- Strong operating cash flow generation of $329.8M provides financial flexibility despite low net margins
- Reasonable leverage profile with 0.72x debt-to-equity and 4.0x interest coverage ratio indicates manageable debt servicing capability
- Adequate liquidity with 1.26x current ratio and $123.8M cash balance supports operational needs and capital allocation
- Meaningful free cash flow of $84.7M after $245.1M capex demonstrates underlying business cash generation capability
- Strong operating cash flow of $329.78M with positive free cash flow
- Liquidity appears adequate with a 1.26x current ratio and 1.24x quick ratio
- Debt load looks manageable relative to equity, with 0.72x debt-to-equity and 4.0x interest coverage
CWST Stock Risks: Casella Waste Systems Inc. Investment Risks
- Significant profitability deterioration with net income down 41.9% YoY and diluted EPS down 47.8% YoY indicates serious operational challenges
- Extremely low net margin of 0.4% combined with stagnant revenue growth (flat YoY) suggests pricing pressure or cost inflation in refuse systems market
- Weak returns on equity (0.5%) and assets (0.2%) indicate poor capital efficiency despite substantial $3.3B asset base and $1.6B equity
- Heavy capital intensity requiring $245.1M annual capex to maintain operations leaves limited margin for error in cash flow generation
- Net income fell 41.9% YoY and diluted EPS fell 47.8% YoY, indicating significant earnings pressure
- Profitability is weak, with only a 3.5% operating margin and 0.4% net margin
- Revenue was flat YoY, raising concern about growth quality if cash flow is not translating into stronger earnings
Key Metrics to Watch
- Net income recovery trajectory and operating margin expansion in subsequent quarters
- Revenue growth acceleration from current 0.0% YoY to demonstrate market demand strength
- Operating cash flow sustainability and free cash flow conversion rate above 4.6% FCF margin
- Return on assets improvement from current 0.2% to demonstrate capital efficiency gains
- Operating margin and net margin trend
- Free cash flow conversion relative to operating cash flow and capital expenditure
Casella Waste Systems Inc. (CWST) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.6% FCF margin may limit capital allocation flexibility.
CWST Profit Margin, ROE & Profitability Analysis
CWST vs Market Sector: How Casella Waste Systems Inc. Compares
How Casella Waste Systems Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Casella Waste Systems Inc. Stock Overvalued? CWST Valuation Analysis 2026
Based on fundamental analysis, Casella Waste Systems Inc. shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Casella Waste Systems Inc. Balance Sheet: CWST Debt, Cash & Liquidity
CWST Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Casella Waste Systems Inc.'s revenue has grown significantly by 107% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.46 reflects profitable operations.
CWST Revenue Growth, EPS Growth & YoY Performance
CWST Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $411.6M | -$4.1M | $0.10 |
| Q2 2025 | $377.2M | $398.0K | $0.01 |
| Q1 2025 | $341.0M | -$4.1M | $-0.07 |
| Q3 2024 | $352.7M | $3.5M | $0.10 |
| Q2 2024 | $289.6M | $2.9M | $0.05 |
| Q1 2024 | $262.6M | $3.5M | $0.07 |
| Q3 2023 | $295.3M | $3.5M | $0.31 |
| Q2 2023 | $283.7M | $3.5M | $0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Casella Waste Systems Inc. Dividends, Buybacks & Capital Allocation
CWST SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Casella Waste Systems Inc. (CIK: 0000911177)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774384147.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778811.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773694490.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773694461.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773694432.xml | View → |
❓ Frequently Asked Questions about CWST
What is the AI rating for CWST?
Casella Waste Systems Inc. (CWST) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CWST's key strengths?
Claude: Strong operating cash flow generation of $329.8M provides financial flexibility despite low net margins. Reasonable leverage profile with 0.72x debt-to-equity and 4.0x interest coverage ratio indicates manageable debt servicing capability. ChatGPT: Strong operating cash flow of $329.78M with positive free cash flow. Liquidity appears adequate with a 1.26x current ratio and 1.24x quick ratio.
What are the risks of investing in CWST?
Claude: Significant profitability deterioration with net income down 41.9% YoY and diluted EPS down 47.8% YoY indicates serious operational challenges. Extremely low net margin of 0.4% combined with stagnant revenue growth (flat YoY) suggests pricing pressure or cost inflation in refuse systems market. ChatGPT: Net income fell 41.9% YoY and diluted EPS fell 47.8% YoY, indicating significant earnings pressure. Profitability is weak, with only a 3.5% operating margin and 0.4% net margin.
What is CWST's revenue and growth?
Casella Waste Systems Inc. reported revenue of $1.8B.
Does CWST pay dividends?
Casella Waste Systems Inc. does not currently pay dividends.
Where can I find CWST SEC filings?
Official SEC filings for Casella Waste Systems Inc. (CIK: 0000911177) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CWST's EPS?
Casella Waste Systems Inc. has a diluted EPS of $0.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CWST a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Casella Waste Systems Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CWST stock overvalued or undervalued?
Valuation metrics for CWST: ROE of 0.5% (sector avg: 15%), net margin of 0.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CWST stock in 2026?
Our dual AI analysis gives Casella Waste Systems Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CWST's free cash flow?
Casella Waste Systems Inc.'s operating cash flow is $329.8M, with capital expenditures of $245.1M. FCF margin is 4.6%.
How does CWST compare to other Market stocks?
Vs Default sector averages: Net margin 0.4% (avg: 12%), ROE 0.5% (avg: 15%), current ratio 1.26 (avg: 1.8).