Casella Waste Systems, Inc. (NASDAQ:CWST) is a prominent player in the waste management services sector, focusing on collection, transfer, disposal, and recycling, primarily in the northeastern United States. The company faces stiff competition from other waste management firms such as Waste Connections, Inc., Clean Harbors, Inc., and Republic Services, Inc., which also offer similar environmental services.

In evaluating Casella’s financial health, the Return on Invested Capital (ROIC) emerges as a crucial metric. Casella’s ROIC stands at 1.85%, which falls significantly short of its Weighted Average Cost of Capital (WACC) of 8.20%. This discrepancy signals that Casella is not generating adequate returns to cover its cost of capital, posing potential concerns for investors.

On the other hand, Waste Connections, Inc. reports a ROIC of 3.53% and a WACC of 7.23%, leading to a ROIC to WACC ratio of 0.49. This comparison suggests that Waste Connections is more efficient in generating returns on its capital than Casella. Similarly, Clean Harbors, Inc. demonstrates superior performance with a ROIC of 8.20% against a WACC of 9.08%, yielding a ratio of 0.90.

Republic Services, Inc. excels with a ROIC of 8.96% and a WACC of 7.17%, resulting in a ROIC to WACC ratio of 1.25. This indicates that Republic Services is proficient in generating returns well above its cost of capital, indicating efficient capital utilization. Exponent, Inc. leads the pack with a ROIC of 14.27% and a WACC of 7.50%, achieving a ROIC to WACC ratio of 1.90, which underscores its robust financial performance.