Why Cleanaway Waste Management Limited (ASX:CWY) Is An Attractive Investment

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Cleanaway Waste Management Limited (ASX:CWY) due to its excellent fundamentals in more than one area. CWY is a company with impressive financial health as well as an optimistic future outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Cleanaway Waste Management here.

Flawless balance sheet with reasonable growth potential

CWY is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. CWY’s has produced operating cash levels of 5.19x total debt over the past year, which implies that CWY’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ASX:CWY Future Profit Jun 18th 18

Next Steps:

For Cleanaway Waste Management, I’ve put together three pertinent aspects you should look at:

1. Historical Performance: What has CWY’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Valuation: What is CWY worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CWY is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CWY? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.