Is the Cleanaway Waste Management Ltd share price set to fall?

The share price of waste management providers Tox Free Solutions Limited (ASX:TOX) and Cleanaway Waste Management Ltd (ASX:CWY) may be set to fall despite Australia's rising population.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Cleanaway Waste Management Ltd (ASX: CWY) share price has risen steadily over the past year, gaining about 20% to close on Thursday at $1.37.

The waste management company has more than 50 years' experience in the industry and operates a network of collection services and processing plants in Australia.

It recently signed a deal to supply waste management services to the Central Coast until 2028.

Cleanaway also says it's taking steps to make its business more environmentally friendly with its commitment to re-refining waste oil products and this year's opening of a new recycling plant in Perth which the company said will address the expanding West Australian population's recycling needs.

But as it claimed to make inroads to improving environmental conditions, Cleanaway was last month slapped with a $30,000 fine by New South Wales Environmental Protection Authority for breaching regulations.

Although the fine was relatively small for a company with a market value of $2.18 billion, perhaps it will make investors and those considering to opt for Cleanaway's services think twice.

Cleanaway's share price has seen steady gains over the past year but it has a long way to go before it hits the $8-mark it was trading at 10 years ago.

And analysts suggest the Cleanaway share price won't be taking off in the near future.

Some analysts have set a 12-month price target for Cleanaway shares of around $1.36, with one tipping the share price to drop to $1.05.

And the outlook is not much brighter for another waste-service provider, Tox Free Solutions Limited (ASX: TOX).

The Tox Free share price has climbed from $2.33 a year ago to close at $2.47 on Thursday.

Unlike Cleanaway, Tox Free's share price is trading at around the same point it was 10 years ago.

But, despite recent signings of lucrative contracts and an increase in revenue from $393.4 million in FY16 to $496.1 million reported for FY17, the outlook for Tox Free is not great.

Some analysts have set a 12-month price target of $2.39, with one offering a low of $2.15.

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »