Is It Time To Consider Buying Cleanaway Waste Management Limited (ASX:CWY)?

Cleanaway Waste Management Limited (ASX:CWY) is a leading waste management, industrial, and environmental services company in Australia, with a market cap of AUD 5.93 billion. The company's shares have increased by 5.26% in one year, and its revenue has grown by 5.60% in the last 12 months. However, ASX:CWY's stock price has only increased by 2.70% in the last 52 weeks, which is lower than the average stock price performance of its peers. This discrepancy between revenue growth and stock price performance suggests that ASX:CWY's stock may be undervalued.



ASX:CWY's trailing PE ratio is 38.00, which is relatively high compared to the industry average. However, the company's forward PE ratio is 29.38, which is lower than its trailing PE ratio. This indicates that the market may be pricing in lower earnings expectations for ASX:CWY in the future. Additionally, ASX:CWY's PEG ratio is 1.89, which is lower than the industry average. This suggests that the company's stock may be relatively undervalued compared to its peers.



ASX:CWY's return on equity (ROE) is 5.32%, which is lower than the industry average. However, the company's return on invested capital (ROIC) is 4.40%, which is higher than the industry average. This suggests that ASX:CWY may be more efficient in generating returns for its shareholders than its peers. Additionally, ASX:CWY's dividend yield is 1.92%, which is higher than the industry average. This indicates that the company may be a attractive option for income-oriented investors.



ASX:CWY faces several risks and challenges, including debt levels, market volatility, regulatory compliance, labor and workforce management, and regulatory changes. However, the company has demonstrated its ability to address these risks and challenges proactively, maintaining a strong focus on regulatory adherence, investing in technology and infrastructure, and expanding its service offerings to diversify its revenue streams.

In conclusion, ASX:CWY's relatively low stock price performance, low PEG ratio, and high dividend yield suggest that the company's stock may be undervalued. Additionally, the company's strong financial performance, efficient use of capital, and ability to address risks and challenges indicate that ASX:CWY may be an attractive investment opportunity. However, investors should carefully consider the company's risks and challenges before making a final determination.