Why a rubbish collector is the ASX’s most vulnerable big company
Cleanaway Waste Management needs investors to buy into its growth story, and soon, because while earnings forecasts are rising, the share price isn’t. That makes it vulnerable to a takeover.
Australia’s biggest rubbish collector Cleanaway Waste Management has two options: shape up or risk being shipped out to a new owner.
Cleanaway has an estimated 40 per cent market share, steady earnings, GDP-plus type growth, 140 inflation-protected council contracts and hard assets (landfill sites, 332 branches, 3500 heavy vehicles). It is about to notch its 10th straight year of revenue and underlying earnings growth, surviving COVID-19, inflation, a cost-of-living crisis, floods and fires.
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Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
