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Cleanaway Waste Management
(Sydney:CWY)
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Rating:66Neutral
Price Target:
AU$3.00
▲(15.83% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by financially stable operations with improving cash flow, supported by constructive technical momentum. These positives are tempered by high valuation (P/E ~59.5) and financial risks flagged in fundamentals and the call—margin compression, rising leverage/finance costs, and near-term cash/earnings headwinds from IT and remediation spending despite improved FY27 EBIT guidance.
Positive Factors
Broad revenue and EBIT growth
Double-digit revenue and underlying EBIT growth indicates continued customer demand and improving operating scale. Sustained expansion across the group can support reinvestment in infrastructure and strengthen Cleanaway’s position in Australia’s essential waste-services market.
Negative Factors
Persistent margin and profitability pressure
The multi-year decline in net and EBITDA margins shows that revenue growth is not fully converting into earnings. Continued cost inflation, weaker segments and significant items could limit returns on the company’s large infrastructure base.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad revenue and EBIT growth
Double-digit revenue and underlying EBIT growth indicates continued customer demand and improving operating scale. Sustained expansion across the group can support reinvestment in infrastructure and strengthen Cleanaway’s position in Australia’s essential waste-services market.
Read all positive factors
Cleanaway Waste Management (CWY) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$5.83B
Dividend Yield2.51%
Average Volume (3M)15.14M
Price to Earnings (P/E)58.5
Beta (1Y)0.44
Revenue Growth13.49%
EPS Growth-37.41%
CountryAU
Employees9,700
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)0.04
Shares Outstanding2,241,209,700
10 Day Avg. Volume13,996,169
30 Day Avg. Volume15,141,984
Financial Highlights & Ratios
PEG Ratio-1.44
Price to Book (P/B)1.74
Price to Sales (P/S)1.22
P/FCF Ratio20.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.10Price Target Upside19.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.11
Revenue Forecast (FY)AU$4.22B
Cleanaway Waste Management Business Overview & Revenue Model
Company Description
Cleanaway Waste Management Limited (CWM) is a leading Australian provider of comprehensive waste management, industrial, and environmental solutions. Its operations are structured into three primary divisions: Solid Waste Services, Industrial & Wa...
How the Company Makes Money
Cleanaway primarily makes money by charging customers for waste and environmental services across the waste value chain, earning revenue from both service fees and, where applicable, commodity recovery. Key revenue streams include: (1) Solid waste...
Cleanaway Waste Management Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| Next Earnings Date:Feb 12, 2027
Earnings Call Sentiment Positive
The call presented a predominantly constructive operational and financial story: double-digit revenue and underlying EBIT growth, a substantial free cash flow improvement, margin expansion in core Solid Waste Services, and strong performance from the Contract Resources acquisition. Management acknowledged pockets of underperformance (notably Health Services, parts of Industrial Services and OTS project volumes), one-off/significant items reducing statutory NPAT, and near-term IT and remediation cash costs that temper short-term earnings. Guidance reflects a step-up in underlying EBIT ($500–530m) while recognizing IT/investment costs and legacy cash impacts in FY'27. On balance the positives (strong cash generation, core segment strength, strategic progress and acquisition delivery) outweigh the negatives, though investors should monitor near-term cash and finance cost headwinds and the successful execution of recovery plans.Positive Updates
Strong top-line and underlying EBIT growth
Net revenue increased 13.1% to $3.7 billion and underlying EBIT rose 14.2% to $470.2 million, demonstrating broad earnings growth across the group.
Negative Updates
Statutory NPAT materially lower due to significant items
Statutory NPAT fell to $98.5 million due to net costs from legacy matters, the recent reorganization, IT modernization and non-cash impairments — significant items reduced reported profitability versus underlying metrics.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong top-line and underlying EBIT growth
Net revenue increased 13.1% to $3.7 billion and underlying EBIT rose 14.2% to $470.2 million, demonstrating broad earnings growth across the group.
Read all positive updates
Company Guidance
Management guided FY‑27 underlying EBIT of $500–530 million (FY‑26 underlying EBIT was $470.2m on $3.7bn net revenue), which with expected depreciation & amortisation of $435–455m implies an underlying EBITDA range of $935–985m; cash CapEx is expected to be ~A$360m (total CapEx A$400–410m plus ~A$40m related to FY‑26 truck payments), no material working‑capital movements, cash interest paid of ~A$140m (net finance costs ~A$170m), and a net cash impact of underlying adjustments of A$40–50m; guidance is built on organic growth in core solids (pricing/volume/productivity), recovery in Health/OTS/Industrial Services and indirect‑cost actions, but recognises higher central IT/Blueprint‑2030 investment (incurred before benefits) and expected landfill remediation of ~A$180m over FY‑27–29.Cleanaway Waste Management Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
71
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.30B | 3.79B | 3.70B | 3.51B | 2.97B |
| Gross Profit | 573.20M | 3.79B | 480.70M | 365.00M | 328.50M |
| EBITDA | 726.40M | 707.90M | 688.10M | 434.00M | 487.40M |
| Net Income | 98.50M | 156.90M | 156.60M | 21.60M | 78.90M |
Balance Sheet | |||||
| Total Assets | 7.23B | 6.58B | 6.37B | 6.07B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 116.20M | 86.50M | 120.60M | 102.10M | 66.50M |
| Total Debt | 2.33B | 1.80B | 1.73B | 1.59B | 1.68B |
| Total Liabilities | 4.21B | 3.53B | 3.37B | 3.13B | 3.22B |
| Stockholders Equity | 3.02B | 3.04B | 3.00B | 2.94B | 2.63B |
Cash Flow | |||||
| Free Cash Flow | 261.90M | 122.10M | 138.90M | 96.70M | 204.30M |
| Operating Cash Flow | 546.90M | 457.20M | 542.10M | 482.60M | 467.30M |
| Investing Cash Flow | -806.60M | -308.10M | -459.50M | -548.90M | -774.40M |
| Financing Cash Flow | 289.60M | -183.20M | -64.10M | 101.90M | 304.20M |
Cleanaway Waste Management Technical Analysis
Positive
2.59
Price Trends
2.45
Positive
2.38
Positive
2.42
Positive
Market Momentum
0.04
Positive
54.87
Neutral
71.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CWY, the sentiment is Positive. The current price of 2.59 is below the 20-day moving average (MA) of 2.59, above the 50-day MA of 2.45, and above the 200-day MA of 2.42, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CWY.
Cleanaway Waste Management Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | AU$5.83B | 58.52 | 3.26% | 2.51% | 13.49% | -37.41% | |
65 Neutral | AU$4.69B | 17.47 | 48.18% | 4.20% | -1.03% | 8.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | AU$4.25B | 20.21 | 11.01% | 4.38% | -7.37% | 59.81% | |
46 Neutral | AU$23.76M | -0.21 | -175.71% | ― | -35.63% | -374.34% | |
45 Neutral | AU$31.20M | -5.46 | -14.21% | 1.40% | -0.09% | -228.23% |
* Industrials Sector Average
AU:CWY
Cleanaway Waste Management
2.56
-0.11
-4.12%
AU:DOW
Downer EDI Limited
6.60
-0.05
-0.69%
AU:EGL
Environmental Group Limited
0.08
-0.18
-68.08%
AU:CLG
Close the Loop Ltd.
0.04
<0.01
7.50%
AU:VNT
Ventia Services Group Limited
5.78
0.99
20.67%
Cleanaway Waste Management Corporate Events
Cleanaway Declares Interim Dividend for June 2026 Half-Year
Aug 19, 2026
Cleanaway Waste Management has declared an ordinary dividend of AUD 0.035 per fully paid share for the six-month period ended 30 June 2026. The dividend timetable sets an ex-dividend date of 11 September 2026, a record date of 14 September 2026, a...
Cleanaway Reaffirms Compliance With ASX Governance Standards
Aug 19, 2026
Cleanaway Waste Management Limited operates in the waste management and environmental services industry, providing integrated waste collection, recycling, resource recovery and disposal solutions. The company focuses on delivering sustainable wast...
Cleanaway lifts underlying earnings and dividend despite one‑off hit to profit
Aug 19, 2026
Cleanaway Waste Management reported strong growth for the year ended 30 June 2026, with gross revenue rising 13.5% to $4.37 billion and net revenue up 13.1% to $3.74 billion, largely aided by the acquisitions of Contract Resources and Citywide Was...
Cleanaway Revenue Climbs but Profit and Asset Backing Weaken in FY26
Aug 19, 2026
Cleanaway reported a 13.5% rise in revenue to $4.37 billion for the year ended 30 June 2026, but profit after tax fell 38% to $98.2 million compared with the prior year. The company declared a fully franked final dividend of 3.50 cents per share, ...
TAL Daiichi and Challenger Exit Substantial Holding in Cleanaway
Aug 19, 2026
TAL Daiichi Life Australia Pty Ltd and its Daiichi Life Group associates have notified Cleanaway Waste Management that they have ceased to be substantial holders in the company as of 17 August 2026. Their prior indirect substantial holding arose t...
Challenger exits substantial holder position in Cleanaway
Aug 19, 2026
Challenger Limited has lodged a notice stating it has ceased to be a substantial holder in Cleanaway Waste Management Limited, signalling that its relevant interest in the company’s voting securities has fallen below the substantial holding ...
Cleanaway Grants EQT Exclusive Talks on $9.4bn Takeover as It Reaffirms Earnings Outlook
Aug 13, 2026
Cleanaway Waste Management has received a conditional, non‑binding proposal from EQT Infrastructure to acquire all its shares via a scheme of arrangement at $3.13 per share in cash, implying an enterprise value of about $9.4 billion and a pr...
Greencape Capital Exits Substantial Holding in Cleanaway Waste Management
Aug 6, 2026
Greencape Capital Pty Ltd has lodged a notice with the ASX stating it has ceased to be a substantial holder in Cleanaway Waste Management Limited. The filing indicates that Greencape’s voting interest has fallen below the substantial holding...
Host-Plus exits substantial holder status in Cleanaway Waste Management
Jul 29, 2026
Host-Plus Pty Limited has notified Cleanaway Waste Management Ltd that it has ceased to be a substantial holder in the company as of 23 July 2026, superseding a previous notice lodged in January 2026. The change reflects a reduction in Host-Plus&#...
Cleanaway names new CFO as it confirms FY26 earnings outlook
Jul 21, 2026
Cleanaway Waste Management has announced that long‑serving Chief Financial Officer Paul Binfield will step down after more than five years, with experienced executive Nigel Simonsz appointed to succeed him from 27 July 2026. Simonsz brings s...
Cleanaway Reports Lapse of 201,820 Performance Rights
Jul 14, 2026
Cleanaway Waste Management has notified the market that 201,820 performance rights (CWYAO) have lapsed after the conditions attached to those rights were not satisfied or became incapable of being met. The cessation of these securities, effective ...
Cleanaway Discloses Final Director Interest as Philippe Etienne Departs Board
Jul 13, 2026
Cleanaway Waste Management has announced the cessation of Philippe Gerald Etienne as a director, effective 30 June 2026, as disclosed in a final director’s interest notice to the ASX. The filing records that Etienne holds a beneficial intere...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.