Description
Created
Mar 26, 2025 7:10 PM
Circular Economy Involvement
Focuses on sustainable waste/resource management in the Northeast US, including recycling, composting, and landfill alternatives.
Company Name
Casella Waste Systems
Cover Image
https://www.casella.com/sites/default/files/styles/video_thumbnail/public/Casella-logo-2019.png
Industry/Subsector
Environmental Services – Waste & Recycling
Investment Thesis
Smaller, fast-growing regional player in waste management; benefits from local zero-waste policies, stable business model with expansions in composting & recycling.
Market CapitalizationMarket Capitalization
$5 billion
Multi-selectMarket Capitalization
Recent Financial Performance
Revenue ~$1.0+ billion, net margins ~5–7%, ROE ~10–13%, moderate leverage (debt/equity ~1.0–1.3).
Stock
Ticker
CWST
- Industry/Subsector: Environmental Services – Waste & Recycling
- Market Capitalization: ~$5 billion
- Circular Economy Involvement:
- Casella Waste focuses on sustainable resource management, operating solid waste, recycling, and organic processing facilities, particularly in the Northeastern U.S.
- Offers food and yard waste composting, turning organic waste into valuable soil amendments instead of landfilling.
- Implements advanced recycling programs for residential and commercial customers, helping divert significant waste from landfills.
- Recent Financial Performance:
- Revenue topped $1.0 billion in recent annual results, growing at a steady rate.
- Net income margin in the mid-to-high single digits (often around 5–7%).
- ROE is typically around 10–13%, reflecting a solid operating model for a mid-cap waste services firm.
- Leverage is moderate, with debt/equity around 1.0–1.3, manageable given stable cash generation.
- Investment Thesis:
- Smaller, fast-growing alternative in the waste management space, poised to benefit from expanding recycling mandates and composting efforts.
- Focuses on the environmentally progressive Northeast region, where zero-waste initiatives and high recycling participation support organic growth.
- Demonstrates consistent revenue and EBITDA growth, with upside as states enact stricter landfill diversion targets.
- Long-term potential for shareholder returns through both capital appreciation and (potentially) dividends as it continues to scale.