Cleanaway Waste Management is a leading provider of waste management and environmental services in Australia, it operates across 200 solid, liquid, and industrial service depots. Cleanaway’s primary business is the collection, processing, and landfilling/recycling of municipal, commercial, and industrial waste. The company also carries out the disposal of specific industrial, liquid, and health waste. As we enter a greener world CWY’s green activities should in theory be well-positioned moving forward.
CWY’s 1HFY23 result was broadly in line with market expectations, EBITDA came in at $322m but labour efficiency issues are thought by many to remain a challenge into next year despite management pursuing a range of approaches to help fill positions – strikes in some parts of Sydney this week not helping.
However, we believe the job market is slowly turning for the company which might improve operations sooner than many believe. After correcting close to 30% over the last year this is a potential recovery story with the big question being when MM believes the value will become compelling. This $5.45bn business isn’t cheap at the moment trading on an Est valuation of 35x for 2023 although this is set to fall over the coming years.
- We don’t see any reason to chase CWY just yet but another 10% on the downside would turn the dial in our opinion.
MM likes CWY into fresh lows for 2023
Add To Hit List
