CWSTCasella Waste Systems, Inc.
Is the business good?
The checks split: earnings fully cash-backed (8.2×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CWST?
Casella Waste Systems, Inc. earns 1.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 7.2 points below what the capital costs: growth destroys value
- Operating margin
- 3.4%
Operating margin · Waste Management median 11% · 12 months to Q2 2026
- Cash conversion
- 8.24×
Cash conversion · 7.04× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.19%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 7.7% |
| FY2021 | 8.7% |
| FY2022 | 8.8% |
| FY2023 | 6.4% |
| FY2024 | 4.7% |
| FY2025 | 3.5% |
Details›
- Gross margin12 months to Q2 2026
- 33%
- Operating margin12 months to Q2 2026
- 3.4%
- Net margin12 months to Q2 2026
- 0.29%
- Free cash flow margin
- 5.4%
- Revenue, trailing twelve months
- $1.96B
- Free cash flow, trailing twelve months
- $106M
- Net income, trailing twelve months
- $5.7M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 1.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Waste Management
Ranks #4 of 5 by RyuScore