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Clean Harbors (CLH)
NYSE:CLH
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Clean Harbors
(NYSE:CLH)70Outperform
Positive Factors
Financial Performance
CLH posted a strong Q4 led by a 2% EBITDA beat and free cash flow that was 27% above consensus.
Industrial Activity and Reshoring
Clean Harbors is well-positioned to benefit from an improving outlook for industrial activity and reshoring activities in the U.S.
Negative Factors
SKSS Performance
Challenging backdrop for SKSS as base oil prices stepped down further, leading to the lowest quarterly contribution since 2020.
Clean Harbors (CLH) vs. S&P 500 (SPY)
Market Cap
$10.89B
Dividend YieldN/A
Average Volume (3M)510.61K
Price to Earnings (P/E)26.6
Beta (1Y)0.97
Revenue Growth8.89%
EPS Growth6.76%
CountryUS
Employees25,232
SectorIndustrials
Sector Strength66
IndustryWaste Management
Share Statistics
EPS (TTM)7.42
Shares Outstanding53,856,834
10 Day Avg. Volume612,542
30 Day Avg. Volume510,605
Financial Highlights & Ratios
PEG Ratio3.94
Price to Book (P/B)N/A
Price to Sales (P/S)1.85
Price to Cash Flow (P/CF)9.00
P/FCF Ratio8.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$271.56Price Target Upside37.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Clean Harbors Business Overview & Revenue Model
Company DescriptionClean Harbors, Inc. (CLH) is a leading provider of environmental, energy, and industrial services throughout North America. The company operates in various sectors, including hazardous waste management, environmental cleanup, and industrial maintenance. With a commitment to sustainability and safety, Clean Harbors offers a comprehensive suite of solutions, such as waste disposal, recycling, emergency spill response, and industrial cleaning and maintenance services, catering to a diverse range of industries including manufacturing, oil and gas, and government agencies.
How the Company Makes MoneyClean Harbors makes money through its extensive range of environmental and industrial services. Key revenue streams include hazardous waste management, where the company profits from the collection, transportation, treatment, and disposal of hazardous materials. Additionally, Clean Harbors generates income from its industrial services, which include high-pressure cleaning, equipment maintenance, and facility decontamination. The company also offers emergency response services for environmental incidents, earning fees for rapid deployment and remediation efforts. Significant partnerships with industrial clients and government contracts further contribute to the company's earnings by ensuring a steady demand for its specialized services. Clean Harbors' strategic focus on sustainability and regulatory compliance positions it as a trusted partner in helping businesses and governments manage environmental challenges.
Clean Harbors Financial Statement Overview
Summary
Clean Harbors demonstrates strong financial performance with robust revenue growth, effective leverage management, and solid cash flow generation. The high liabilities pose a potential risk, but overall, the company is well-positioned within the industry.Income Statement
Clean Harbors has demonstrated strong revenue growth over the years, with a 9% increase in 2024 compared to 2023. The gross profit margin stands at 30.97%, and the net profit margin is 6.83%, indicating healthy profitability levels for the industry. The EBIT margin is 11.38%, and the EBITDA margin is 13.57%, showing efficient operations. Overall, the company exhibits robust revenue and profit growth, contributing to its high score.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio has improved significantly to 0.10 in 2024, reflecting reduced leverage, which is a positive sign. The return on equity (ROE) is 15.63%, showcasing effective use of equity to generate profits. The equity ratio is 34.88%, indicating a balanced capital structure. However, the high total liabilities still present a potential risk.78
Positive
Cash Flow
The free cash flow growth rate is 11.60% in 2024, showing strong cash generation. The operating cash flow to net income ratio is 1.93, and the free cash flow to net income ratio is 0.86, both indicative of sound cash flow management. The company's ability to generate cash from operations supports its financial health.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.89B | 5.41B | 5.17B | 3.81B | 3.14B | Gross Profit |
| 1.82B | 1.66B | 1.62B | 1.20B | 1.01B | EBIT |
| 670.23M | 612.44M | 634.75M | 347.89M | 251.34M | EBITDA |
| 1.09B | 989.57M | 1.01B | 647.73M | 544.05M | Net Income Common Stockholders |
| 402.30M | 377.86M | 411.74M | 203.25M | 134.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 789.83M | 550.80M | 554.64M | 534.30M | 570.96M | Total Assets |
| 7.38B | 6.38B | 6.13B | 5.65B | 4.13B | Total Debt |
| 269.65M | 2.49B | 2.59B | 2.70B | 1.71B | Net Debt |
| -417.54M | 2.05B | 2.10B | 2.25B | 1.19B | Total Liabilities |
| 4.80B | 4.14B | 4.21B | 4.14B | 2.79B | Stockholders Equity |
| 2.57B | 2.25B | 1.92B | 1.51B | 1.34B |
| Cash Flow | Free Cash Flow | |||
| 345.53M | 309.60M | 279.19M | 300.29M | 232.31M | Operating Cash Flow |
| 777.77M | 734.55M | 626.21M | 546.00M | 430.60M | Investing Cash Flow |
| -903.67M | -575.05M | -388.94M | -1.51B | -199.46M | Financing Cash Flow |
| 377.03M | -208.89M | -187.31M | 898.25M | -88.95M |
Clean Harbors Technical Analysis
Negative
197.07
Price Trends
228.25
Negative
239.74
Negative
235.56
Negative
Market Momentum
-8.66
Positive
24.92
Positive
11.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLH, the sentiment is Negative. The current price of 197.07 is below the 20-day moving average (MA) of 219.12, below the 50-day MA of 228.25, and below the 200-day MA of 235.56, indicating a bearish trend. The MACD of -8.66 indicates Positive momentum. The RSI at 24.92 is Positive, neither overbought nor oversold. The STOCH value of 11.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLH.
Clean Harbors Risk Analysis
Clean Harbors disclosed 24 risk factors in its most recent earnings report. Clean Harbors reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clean Harbors Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $92.64B | 33.85 | 36.24% | 1.30% | 8.01% | 20.17% | |
75 Outperform | $73.62B | 36.33 | 18.61% | 0.96% | 7.13% | 18.68% | |
72 Outperform | $1.60B | 20.19 | 7.33% | ― | 2.24% | -66.96% | |
70 Outperform | $10.89B | 26.62 | 16.69% | ― | 8.89% | 6.76% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
CLH
Clean Harbors
197.07
8.93
4.75%
RSG
Republic Services
234.18
52.07
28.59%
WM
Waste Management
229.55
24.74
12.08%
DNOW
Now
15.31
0.58
3.94%
Clean Harbors Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -13.07% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record revenue and cash flow, significant growth in the Environmental Services segment, and successful strategic initiatives like the Kimball incinerator launch and PFAS solutions. However, the SKSS segment faced challenges with decreased revenue and EBITDA, and there were some disruptions due to the California wildfires.Highlights
Strong Consolidated Results
Delivered strong consolidated results in Q4, beating Street expectations with a 10% EBITDA growth for 2024.
Record Revenue and Cash Flow
Achieved record revenue, adjusted EBITDA, and adjusted free cash flow in 2024.
Environmental Services Segment Growth
Environmental Services (ES) segment capped a record year with a 9% increase in revenue and 11% adjusted EBITDA growth.
Successful Launch of Kimball Incinerator
Completed and commercially launched the Kimball, Nebraska incinerator, increasing North American capacity by 12%.
PFAS Solutions and Testing
Launched Total PFAS solution and conducted successful PFAS incineration testing, expecting significant market growth.
Strong Cash Position and Low Leverage
Ended the year with a healthy cash balance of $790 million and low leverage, enabling strategic growth opportunities.
Lowlights
Challenges in Safety-Kleen Sustainability Solutions (SKSS)
Revenue and EBITDA decreased year over year in Q4 due to soft demand and lower pricing in the base oil and lubricants market.
Impact of California Wildfires
California wildfires caused disruptions to branch collections, although no operating branches were affected.
Higher Corporate Costs
Q4 results were offset by higher corporate costs, including increased labor, benefits, and insurance costs.
Company Guidance
During the Clean Harbors fourth quarter and full year 2024 financial results conference call, the company reported a consolidated EBITDA growth of 10%, with full-year revenue growth of 11% and adjusted EBITDA margins exceeding 25%. The Environmental Services (ES) segment experienced a 9% increase in revenue, contributing to an 11% adjusted EBITDA growth. The segment's field services revenue grew by 47%, driven mainly by organic growth and the acquisition of HEPAKO. The company also launched a new incinerator in Kimball, Nebraska, increasing North American capacity by 12%. Safety-Kleen Environmental Services (SKSS) faced a challenging commodity pricing environment, leading to a decrease in revenue and EBITDA year-over-year. However, aggressive pricing actions were taken to counteract these challenges. The company ended the year with a net debt to EBITDA ratio just under two times and expects 2025 adjusted EBITDA to be in the range of $1.15 billion to $1.21 billion, with adjusted free cash flow estimated between $430 million and $490 million.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.