Covanta Holding Corporation (CVA)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Covanta Holding Corporation (CVA) trades at $20.26 with AI Score 46/100 (Grade C). Covanta Holding Corporation provides waste and energy services, converting waste into energy and managing waste disposal. Sector: Industrials.
Price live · AI analysis from May 9, 2026Analyst Coverage for CVA: CVA does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates CVA against Industrials peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
CVA: the 1 perspectives are evenly split.
How is this calculated? →Covanta Holding Corporation (CVA) Industrial Operations Profile
Covanta Holding Corporation is a key player in the waste management sector, specializing in energy-from-waste (EfW) technology and waste disposal services across North America. The company converts waste into energy, contributing to renewable energy production and offering comprehensive waste management solutions to municipalities.
What Is the Investment Thesis for CVA?
Covanta Holding Corporation presents a compelling investment case based on its established position in the waste-to-energy sector and its diversified waste management solutions. The company's revenue is driven by long-term contracts with municipalities, providing a stable income stream. A key value driver is the increasing demand for sustainable waste management solutions, as municipalities seek alternatives to landfills. Covanta's strategic partnership with the Green Investment Group could unlock growth opportunities in international markets. However, potential risks include fluctuations in energy prices and regulatory changes impacting waste disposal practices. The company's profit margin of -1.5% indicates potential areas for operational improvement.
Based on FMP financials and quantitative analysis
CVA Key Highlights
- Operates 41 energy-from-waste (EfW) facilities, converting waste into a renewable energy source.
- Strategic partnership with Green Investment Group to expand EfW projects in Ireland and the United Kingdom.
- Offers a comprehensive suite of waste management solutions, including site clean-up and recycling services.
- Serves municipal entities primarily in the United States and Canada, providing essential waste disposal services.
- Dividend Yield of 1.58% provides income for investors.
Who Are CVA's Competitors?
CVA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| FTAI FTAI Aviation Ltd. | $245.65 | -0.97% | $25.20B | 40 |
| ARNC Arconic Corporation | $29.99 | +0.03% | $3.01B | 42 |
| ECLMF Ecolomondo Corporation | $0.08 | -0.00% | $17.55M | 63 |
| VCIGF Vitreous Glass Inc. | $4.61 | +0.00% | $29.31M | 56 |
| YDDL One and one Green Technologies. Inc | $2.11 | +1.00% | $96.74M | 56 |
| SCPJ Scope Industries | $325.00 | +8.33% | $297.71M | 55 |
| TNJIF Tianjin Capital Environmental Protection Group Company Limited | $0.40 | -14.98% | $1.04B | 46 |
| ECOL US Ecology, Inc. | $47.99 | +0.00% | 46 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CVA's Key Strengths?
- Established infrastructure network of EfW facilities.
- Long-term contracts with municipalities.
- Proprietary technology for waste-to-energy conversion.
- Comprehensive suite of waste management solutions.
What Are CVA's Weaknesses?
- Negative profit margin of -1.5%.
- Dependence on long-term contracts, limiting flexibility.
- Exposure to fluctuations in energy prices.
- Capital-intensive operations.
What Could Drive CVA Stock Higher?
- Expansion of energy-from-waste (EfW) facilities to meet increasing demand for sustainable waste management.
- Strategic partnerships to develop new waste treatment technologies.
- Potential government incentives and regulations promoting renewable energy and waste reduction.
- Increasing focus on recycling and resource recovery to enhance sustainability.
What Are the Key Risks for CVA?
- Negative return on equity (-8.2%) — the business is not currently generating profit on shareholder capital.
- Stricter environmental regulations increasing compliance costs.
- Fluctuations in energy prices impacting revenue from electricity sales.
- Competition from alternative waste disposal methods, such as landfilling.
- Economic downturns reducing waste generation and impacting contract volumes.
What Are the Growth Opportunities for CVA?
- Expansion of Energy-from-Waste (EfW) Facilities: Covanta can expand its EfW infrastructure to capitalize on the growing demand for sustainable waste management solutions. The global EfW market is projected to reach billions of dollars by 2030, driven by increasing waste generation and stricter environmental regulations. Covanta's partnership with Green Investment Group provides a platform for international expansion in this area.
- Enhanced Waste Recycling and Processing Capabilities: Investing in advanced recycling technologies and expanding material processing facilities can increase Covanta's revenue streams and reduce reliance on landfill disposal. The recycling market is experiencing growth due to increasing consumer awareness and government initiatives promoting recycling programs. Covanta can leverage its existing infrastructure to capture a larger share of this market.
- Development of Advanced Waste Treatment Technologies: Exploring and implementing innovative waste treatment technologies, such as anaerobic digestion and pyrolysis, can create new revenue opportunities and enhance Covanta's sustainability profile. These technologies can convert organic waste into biogas and other valuable products, reducing greenhouse gas emissions and promoting a circular economy.
- Strategic Acquisitions and Partnerships: Pursuing strategic acquisitions and partnerships with complementary waste management companies can expand Covanta's geographic reach and service offerings. This can include acquiring regional waste disposal providers or partnering with technology companies specializing in waste treatment and recycling solutions. Such initiatives can strengthen Covanta's competitive position and accelerate growth.
- Leveraging Government Incentives and Regulations: Capitalizing on government incentives and regulations promoting renewable energy and waste reduction can create favorable market conditions for Covanta's EfW facilities and other sustainable waste management solutions. This includes securing tax credits, grants, and other financial incentives for renewable energy projects, as well as advocating for policies that promote waste diversion and recycling.
What Opportunities Does CVA Have?
- Expansion of EfW facilities in North America and Europe.
- Increased demand for sustainable waste management solutions.
- Development of advanced waste treatment technologies.
- Strategic acquisitions and partnerships.
What Threats Does CVA Face?
- Stricter environmental regulations.
- Competition from alternative waste disposal methods.
- Economic downturns impacting waste generation.
- Technological obsolescence.
What Are CVA's Competitive Advantages?
- Established infrastructure network of EfW facilities and waste processing plants.
- Long-term contracts with municipalities providing stable revenue streams.
- Proprietary technology for converting waste into energy.
- Strong relationships with municipal and commercial clients.
What Does CVA Do?
Covanta Holding Corporation, originally founded as Danielson Holding Corporation in 1992 and renamed in 2005, is a prominent provider of waste and energy services. The company focuses on converting waste into energy through its extensive infrastructure network, which includes 41 energy-from-waste (EfW) facilities as of December 31, 2019. These facilities process municipal solid waste to generate electricity and/or steam, providing a sustainable alternative to traditional landfill disposal. Covanta also operates 14 transfer stations, 20 material processing facilities, four landfills, two wood waste energy projects, one regional metals recycling facility, and one ash processing facility. Beyond energy generation, Covanta offers a range of waste management solutions, including waste transport and disposal, site clean-up, wastewater treatment, pharmaceutical and healthcare solutions, reverse distribution, transportation and logistics, recycling, and depackaging. The company's operations are primarily located in the United States and Canada, serving municipal entities and commercial clients. Covanta has a strategic partnership with the Green Investment Group Limited to develop EfW projects in Ireland and the United Kingdom, expanding its reach into international markets. This partnership underscores Covanta's commitment to innovation and sustainable waste management practices on a global scale.
What Products and Services Does CVA Offer?
- Converts municipal solid waste into energy through energy-from-waste (EfW) facilities.
- Generates electricity and steam from waste combustion.
- Recovers metals from the waste stream for recycling.
- Provides waste management solutions, including transportation and disposal.
- Offers site clean-up and wastewater treatment services.
- Provides pharmaceutical and healthcare waste management solutions.
- Engages in reverse distribution and depackaging services.
How Does CVA Make Money?
- Generates revenue from long-term contracts with municipalities for waste disposal services.
- Sells electricity and steam generated from EfW facilities to utilities and industrial customers.
- Recovers and sells metals from the waste stream.
- Provides a range of waste management services to commercial and industrial clients.
What Industry Does CVA Operate In?
Covanta Holding Corporation operates within the waste management industry, which is experiencing growth driven by increasing urbanization and stricter environmental regulations. The industry is characterized by a mix of large, established players and smaller, regional operators. Covanta differentiates itself through its focus on energy-from-waste technology, offering a sustainable alternative to traditional landfill disposal. The company competes with other waste management firms such as FTAI Aviation Ltd. (FTAI) and Arconic Corporation (ARNC), as well as regional waste disposal providers. The global waste management market is projected to reach significant growth in the coming years, driven by increasing waste generation and the need for environmentally sound disposal methods.
Who Are CVA's Key Customers?
- Municipalities and local governments seeking waste disposal solutions.
- Utilities and industrial customers purchasing electricity and steam.
- Commercial and industrial clients requiring waste management services.
- Healthcare facilities needing pharmaceutical waste disposal solutions.
CVA Valuation & Market Position
Relative to its peer group, CVA's quantitative score of 46/100 is roughly in line with the peer average of 51/100.
ROE -8%Key Financial Metrics
Return on equity for Covanta Holding Corporation stands at -8.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -0.8%, showing how much profit it generates from its asset base. A current ratio of 1.09 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -1.0%, the inverse of the P/E and a quick read on earnings relative to price.
CVA Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in Covanta's future, indicating that key stakeholders believe in the company's growth potential.
- Community sentiment has shifted positively, with discussions highlighting Covanta's role in sustainable waste management and renewable energy.
- Recent contract wins for waste-to-energy projects have bolstered investor optimism, showcasing Covanta's competitive edge in the industry.
- The growing focus on environmental, social, and governance (ESG) criteria has led to increased interest in companies like Covanta, which align with these values.
Bear Case
- Concerns about regulatory changes in waste management could pose risks to Covanta's operations and profitability moving forward.
- Community discussions reveal skepticism about the scalability of Covanta's business model in a rapidly evolving energy landscape.
- Recent earnings reports have shown mixed results, leading some investors to question the company's ability to maintain growth momentum.
- Increased competition in the waste-to-energy sector may pressure Covanta's market share, causing apprehension among investors.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
CVA Latest News
No recent news available for CVA.
CVA Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CVA.
Price Targets
Wall Street price target analysis for CVA.
CVA MoonshotScore
What does this score mean?
The MoonshotScore rates CVA's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Waste ManagementLeadership: Stephen Jones
CEO
Stephen Jones serves as the CEO of Covanta Holding Corporation, leading a team of 4,000 employees. His career spans several decades in the environmental services and energy sectors. Prior to joining Covanta, Jones held leadership positions at various companies, where he focused on operational excellence and strategic growth. He brings extensive experience in managing large-scale infrastructure projects and driving sustainable business practices. His educational background includes advanced degrees in engineering and business administration.
Track Record: Under Stephen Jones's leadership, Covanta Holding Corporation has focused on expanding its energy-from-waste (EfW) infrastructure and enhancing its waste management solutions. Key achievements include securing long-term contracts with municipalities and expanding the company's recycling capabilities. Jones has also overseen the implementation of advanced waste treatment technologies and the development of strategic partnerships to drive growth. His tenure has been marked by a commitment to sustainability and operational efficiency.
CVA Industrials Stock FAQ
What does Covanta Holding Corporation do?
Covanta Holding Corporation specializes in converting waste into energy through its network of energy-from-waste (EfW) facilities. The company processes municipal solid waste to generate electricity and steam, providing a sustainable alternative to traditional landfill disposal. In addition to energy generation, Covanta offers a range of waste management solutions, including waste transportation, recycling, and site clean-up services. The company primarily serves municipal entities and commercial clients in the United States and Canada, contributing to environmental sustainability by reducing reliance on landfills and generating renewable energy.
What do analysts say about CVA stock?
Analyst consensus on Covanta Holding Corporation (CVA) reflects a focus on its stable revenue streams from long-term municipal contracts and its position in the growing waste-to-energy sector. Key valuation metrics include enterprise value to EBITDA and price-to-earnings ratios, compared to industry peers. Growth considerations center on the company's ability to expand its EfW infrastructure and capitalize on increasing demand for sustainable waste management solutions. Analysts also monitor the impact of energy prices and regulatory changes on Covanta's financial performance.
What are the main risks for CVA?
The main risks for Covanta Holding Corporation (CVA) include stricter environmental regulations that could increase compliance costs, fluctuations in energy prices affecting revenue from electricity sales, and competition from alternative waste disposal methods such as landfilling. Economic downturns could also reduce waste generation, impacting contract volumes and revenue. Additionally, technological obsolescence in waste treatment processes and potential disruptions to the supply chain could pose challenges to Covanta's operations and financial performance.
What are the key factors to evaluate for CVA?
Covanta Holding Corporation (CVA) holds an AI score of 46/100 (low). Not financial advice.
How frequently does CVA data refresh on this page?
CVA prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven CVA's recent stock price performance?
Covanta Holding Corporation (CVA) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Established infrastructure network of EfW facilities. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider CVA overvalued or undervalued right now?
Valuing Covanta Holding Corporation (CVA) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying CVA?
Before investing in Covanta Holding Corporation (CVA), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on data available as of December 31, 2019.
- Financial metrics may not reflect current market conditions.