Covanta Holding Corp CVSA

Name: CVSA Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored March 16, 2026

Price at analysis: $116.19

Crucible Score

68.1

Quality × Value Composite

KQI — Quality

64.2

B-

Fundamental Quality Index

KVI — Value

72.9

Valuation Attractiveness Index

Crucible Verdict — CVSA

Covanta Holding Corp earns a solid B rating driven by strong financial quality (81) that contrasts sharply with weak diversification (28) and market position (38) scores. CVSA trades at a 13% discount to fair value with insider buying supporting the thesis, but the 52 growth profile and modest 65% earnings beat rate suggest limited upside catalysts beyond valuation normalization.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

80.6

Growth Profile⚠

52.2

Moat Durability⚠

66.5

Management Effectiveness

72.5

Diversification & Resilience⚠

28.0

Market Position

38.0

Weakest dimension: Diversification & Resilience (28.0)

◆ KVI Value Dimensions

DCF Margin of Safety

63.9

FCF Yield & Cash Returns

94.9

Relative Valuation

95.0

Growth-Adjusted Value

40.7

Historical Valuation

58.8

Macro Context

90.4

◆ DCF Valuation Scenarios

Bear Case

$88.42

Base Case

$131.57

Bull Case

$189.34

Price at Analysis

$116.19

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$88.42	6.0%	16.0%	8.4%
🟢 Base	$131.57	9.0%	19.0%	7.9%
🟢 Bull	$189.34	12.0%	22.0%	7.5%

Key Assumptions: Revenue grew from ~$907M to ~$1788M over 5 years (~15% CAGR) with significant volatility; base case assumes moderation to 9% CAGR as the business matures. Operating margins ranged from 11-19% historically; base case assumes stabilization near 19% at terminal year. WACC derived using CAPM with 0.73 beta, 4.39% risk-free rate, and 5.75% ERP yielding ~7.9% base WACC; capex intensity is low at ~3% of revenue consistent with asset-light personal products model.

◆ Financial Snapshot

Profitability

Gross Margin57.4%

Operating Margin19.3%

Net Margin13.4%

ROIC13.6%

ROE18.4%

Balance Sheet

Balance SheetD/E: 0.53*, CR: 0.68* (* = TTM)

Cash ConversionFCF/EPS: 1.45x

Capital IntensityCapex/Rev: 2.8%

Altman Z-Score4.45 (Safe)

Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR18.5% CAGR

Earnings CAGR4.1% CAGR

Growth ConsistencyCV: 10.67

Segment BreadthNo data

Quarterly TrendMargin↑, Cash↓, Exp↓

Earnings CredibilityMixed

◆ Analyst Consensus & Leadership

Leadership & Governance

CEO Ownership6.3%

Compensation93% performance-based

Insider ActivityStrong Buying

Capital AllocationROIC 13.6% vs WACC 5.3%

Earnings Beat Rate65% (12/16)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 16, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.