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Is Cleanaway Waste Management Ltd a buy?

Cleanaway Waste Management Ltd (ASX: CWY) has seen its share price go nowhere over the past 5 years.

In June 2011, shares were trading at ~75 cents.

Cleanaway Waste Management share price chart

Source: Yahoo Finance

They are currently sitting at 78.5 cents, suggesting that earnings have struggled to grow over the past five years. And looking at the company’s earnings per share history – that’s certainly the case.

In 2010, Cleanaway (formerly TransPacific) made 5.6 cents in earnings per share (EPS). In the 2015 financial year (FY15), Cleanaway generated 5.3 cents in EPS.

However, revenues have crashed from being consistently above $2 billion over the 6 years to 2013, to $1.4 billion in FY15.

As we wrote in March this year, the waste management company has a miserable record of poorly performing acquisitions and remains a highly capital intensive company.

With large debts still on the balance sheet, Cleanaway is not investment grade, and there are better opportunities out there for investors.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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