CVA

Covanta Holding Corporation

Energy


Presented:05/16/2014
Price:$18.76
Cap:$2.46B
Current Price:$20.26
Cap:$2.66B

Presented

Date05/16/2014
Price$18.76
Market Cap$2.46B
Ent Value$4.59B
P/E RatioN/A
Book Value$5.98
Div Yield4.6%
Shares O/S131.10M
Ave Daily Vol2,120,000
Short Int6.52%

Current

Price$20.26
Market Cap$2.66B
Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in North America. The company owns and operates infrastructure for the conversion of waste to energy, as well as is engaged in other waste disposal and renewable energy production businesses. It is also involved in the disposal of waste and the generation of electricity, as well as in the sale of metal recovered during the energy-from-waste process. The company owns and operates 46 energy-from-waste facilities; and 11 additional energy generation facilities, including wood biomass and hydroelectric renewable energy production facilities in North America. In addition, it owns and operates 18 transfer stations and 4 ash landfills in the Northeast United States, as well as provides waste procurement services; and owns an interest in a 24 MW (gross) coal-fired cogeneration facility in Taixing City, the People’s Republic of China. Further, the company offers recycling and recovery solutions that provide alternatives to landfills; and provides property and casualty insurance products in California. The company was formerly known as Danielson Holding Corporation. Covanta Holding Corporation was founded in 1960 and is based in Morristown, New Jersey.

Publicly traded companies mentioned herein: Covanta Holding Company (CVA),

Highlights

The presenter is long shares of Covanta (CVA) and believes there is the potential for the provider of waste-to-energy services to surprise the market over the next 12-24 months. With landfills losing favor for a variety of environmental and economic reasons, there’s a tailwind for CVA, which is a leader in the energy-from-waste movement. He thinks the company is off of investors’ radar because it screens at high multiples and appears to be highly levered; however, it is a steady cash flow generator and long term contracts provide visibility into future earnings.

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Idea Discussion

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