Covanta Holding Stock Analysis, Valuation (NYSE:CVA)

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$17.1 $0.1 (0.59%) CVA stock closing price Jun 22, 2018 (Closing)

Watch the robo advisor video of Covanta Holding stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for CVA stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Covanta Holding Corp Stock Rating 2.9/5

Amigobulls CVA stock analysis takes into account various financial ratios like relative valuation, Covanta Holding revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Covanta Holding dividend performance. Covanta Holding valuation forms a crucial part of our stock analysis. Our Covanta Holding stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy CVA stock?

  • The lower PS ratio 1.2 for CVA stock versus Oils-Energy sector average of 1.7 is a positive for the company.
  • Covanta Holding is a dividend paying stock with a high yield of 5.85.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Covanta Holding at 72.1.
  • The company has a good Free Cash Flow (FCF) margin of 7.2.

Should you sell CVA stock?

  • Over the last 5 years, the company registered a poor revenue growth of 2.1.
  • Covanta Holding has a debt/equity ratio of 3.81, which is worse than the average in the -sectordesc- sector.
  • Cash flow from operations is 0.0149 times net income which is a negative signal.
  • The lack of profits renders the PE ratio useless for CVA stock.

Comments on this video and Covanta Holding stock

Investors can make use of the Amigobulls Covanta Holding stock analysis to ascertain how CVA stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Covanta Holding revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about CVA stock.