CWST

Casella Waste Systems is a vertically integrated solid-waste and recycling company operating across the eastern US, executing a disciplined acquisition-led growth strategy. FY2025 revenue grew 18.0% to $1.84B — extending a steady climb from $889M in FY2021 — driven heavily by M&A (the company acquired nine businesses for $223.4M of cash consideration in 2025). Operating cash flow rose 17.2% to $330M, confirming the underlying recurring-revenue waste business is healthy and cash-generative.

The GAAP earnings, however, are misleadingly thin: net income of just $7.87M (0.4% net margin, $0.12 EPS) makes the 724.8x P/E meaningless. The culprit is the acquisition strategy itself — depreciation and amortization surged 30.6% to $307M (largely amortization of acquired intangibles and landfill assets), absorbing nearly all of the $63.7M operating income. For a waste roll-up, EBITDA and free cash flow are the relevant lenses, not net income, and those remain solid.