The Cleanaway Waste Management Ltd (ASX: CWY) share price has today made a new 52-week high. Cleanaway shares opened at $2.77 this morning after closing at $2.78 yesterday. But following a short dip soon after open, Cleanway rocketed higher and hit the new benchmark of $2.84 a share. The shares are still trading roughly at that level at the time of writing at $2.83, up 2.17% for the day.
Cleanaway Waste has had an extremely good month, and year, which has culminated in today's news. The company was going for just $1.87 a share 12 months ago, and $2.20 at the start of the month. That puts the Cleanaway share price gains at 51% and 28.6% respectively. Over the past 5 years, the performance has been even more rewarding for shareholders. Since May 2016, Cleanaway shares are up more than 258%, not including dividend returns.
So what's been going so right for Cleanaway of late?
Cleanaway share price cleans up
It was only back in January that Cleanaway was facing some leadership disruption. Its long-time CEO and managing director, Vik Bansal, resigned after facing some workplace misconduct allegations last year. Mr Bansal's permanent replacement has not yet been named, but CEO duties have been assumed in the meantime by the company's chair Mark Chellew.
But that has all been forgotten in light of more recent developments. Earlier this month, Cleanaway announced that it was acquiring the Australian recycling and recovery business of the French waste management company Suez.
Just this week, we got an update on this deal, which has now been terminated and will not go ahead. However, a part of the deal will still proceed – the acquisition of Suez's portfolio of Sydney-based post‐collection assets. The deal will result in Cleanaway paying $501 million. Investors didn't really like all of this uncertainty at the time. But now all seems to be forgiven, judging by the new highs today.
It also seems fitting to mention that Cleanaway's rival Bingo Industries Ltd (ASX: BIN) has been enjoying some share price success as well. This is a result of the company receiving an acquisition offer of its own from Macquarie Infrastructure and Real Assets of $3.45 per share.
On the current Cleanway share price, the company has a market capitalisation of $5.83 billion. At this level, Cleanway has a price-to-earnings (P/E) ratio of 40.22, and a trailing dividend yield of 1.54%.
