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Clean Harbors (CLH)
NYSE:CLH
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Clean Harbors
(NYSE:CLH)
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Rating:78Outperform
Price Target:
$273.00
▲(10.31% Upside)
Clean Harbors' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. Technical indicators suggest a strong upward trend, though caution is warranted due to overbought signals. The stock's high valuation relative to peers slightly tempers the overall score.
Positive Factors
Strong Cash Flow Generation
The significant increase in free cash flow indicates robust cash generation capabilities, enhancing financial flexibility for future investments and debt reduction.
PFAS Market Growth
Growth in PFAS-related revenue highlights Clean Harbors' ability to capitalize on emerging environmental needs, supporting long-term revenue expansion.
New Contracts
Securing significant contracts for PFAS filtration strengthens Clean Harbors' market position and ensures steady revenue streams over the coming years.
Negative Factors
Industrial and Field Services Decline
Declines in these segments suggest challenges in maintaining growth across all service areas, potentially impacting overall revenue diversity and stability.
Higher Corporate Costs
Rising corporate costs, particularly in insurance and healthcare, could pressure profit margins and reduce financial flexibility if not managed effectively.
Healthcare Cost Challenges
Unexpected increases in healthcare costs can strain profitability and necessitate cost control measures to maintain financial health.
Clean Harbors (CLH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.54B
Dividend YieldN/A
Average Volume (3M)390.20K
Price to Earnings (P/E)35.5
Beta (1Y)0.80
Revenue Growth2.85%
EPS Growth-6.27%
CountryUS
Employees22,796
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)2.21
Shares Outstanding53,431,835
10 Day Avg. Volume257,140
30 Day Avg. Volume390,198
Financial Highlights & Ratios
PEG Ratio4.59
Price to Book (P/B)4.82
Price to Sales (P/S)2.11
P/FCF Ratio35.90
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue2.46
Enterprise Value/Gross Profit7.90
Enterprise Value/Ebitda13.08
Forecast
1Y Price Target
$246.82Price Target Upside-0.27% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)8.01
Revenue Forecast (FY)$6.22B
Clean Harbors Business Overview & Revenue Model
Company DescriptionClean Harbors, Inc. provides environmental and industrial services in North America. The company operates through two segments, Environmental Services and Safety-Kleen Sustainability Solutions. The Environmental Services segment collects, transports, treats, and disposes hazardous and non-hazardous waste, such as resource recovery, physical treatment, fuel blending, incineration, landfill disposal, wastewater treatment, lab chemicals disposal, and explosives management services; and CleanPack services, including collection, identification, categorization, specialized packaging, transportation, and disposal of laboratory chemicals and household hazardous waste. This segment also provides industrial maintenance and specialty industrial services, and utilizes specialty equipment and resources that performs field services. The Safety-Kleen Sustainability Solutions segment offers specially designed parts washers; automotive and industrial cleaning products, such as antifreeze, windshield washer fluid, degreasers, glass and floor cleaners, hand cleaners, absorbents, mats, and spill kits; pickup and transportation services for hazardous and non-hazardous containerized waste for recycling or disposal; and vacuum services to remove solids, residual oily water and sludge, and other fluids from customers oil/water separators, sumps, and collection tanks, as well as remove and collect waste fluids found at metal fabricators, auto maintenance providers, and general manufacturers. This segment also manufactures, formulates, packages, distributes, and markets lubricants; and provides containerized waste, vacuum services, used motor oil collection, and contract blending and packaging services. Clean Harbors, Inc. was incorporated in 1980 and is headquartered in Norwell, Massachusetts.
How the Company Makes MoneyClean Harbors generates revenue primarily through its diverse service offerings, which include waste management, industrial services, and environmental solutions. The company's revenue model is built on a mix of contractual agreements and one-time service fees, enabling it to secure stable income from long-term clients while also capitalizing on project-based work. Key revenue streams include hazardous waste treatment and disposal, industrial cleaning services, and emergency response operations. Additionally, Clean Harbors benefits from strategic partnerships with various sectors such as energy and manufacturing, allowing it to provide tailored solutions that meet specific regulatory and operational needs. The company's focus on sustainability and efficiency further enhances its appeal to clients, contributing to its overall earnings.
Clean Harbors Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The call highlighted strong safety performance, revenue growth, and successful PFAS initiatives. However, challenges in Industrial and Field Services, alongside increased corporate costs, tempered the overall positive sentiment. Despite these challenges, successful strategic initiatives and strong cash flow generation position the company well for future growth.Q3-2025 Updates
Positive Updates
Record Safety Performance
Achieved a TRIR of 0.49, putting the company on track for another record year in safety performance.
Revenue and EBITDA Growth
Total revenue increased to $1.55 billion with a 6% increase in adjusted EBITDA to $320 million. ES segment revenue up 3% and adjusted EBITDA up 7%.
PFAS Market Growth
PFAS-related revenue expected to be $100 million to $120 million this year, up 20% to 25% from a year ago.
Successful PFAS Incineration Study
Completed a successful PFAS incineration study in partnership with the EPA and DoD, confirming the ability to safely destroy PFAS chemicals.
New SDA Unit Announcement
Announced plans for a $210 million to $220 million SDA Unit expected to generate $30 million to $40 million in annual EBITDA upon completion in 2028.
Strong Cash Flow Generation
Record Q3 adjusted free cash flow of $231 million, up $86 million year-on-year.
Negative Updates
Industrial and Field Services Decline
Field Services revenue declined 11% and Industrial Services revenue declined 4% due to slowness in field and industrial services and deferred maintenance by customers.
Higher Corporate Costs
Corporate segment costs were up due to higher insurance expenses and health care costs, impacting profitability.
Healthcare Cost Challenges
Higher-than-anticipated employee healthcare costs impacted financial results, with $6 million affecting the entire company.
Company Guidance
In the Clean Harbors' Q3 2025 earnings call, the company provided updated guidance with a revised full-year adjusted EBITDA range of $1.155 billion to $1.175 billion, reflecting a $15 million reduction primarily due to challenges in Industrial and Field Services and increased health care costs. Despite these setbacks, the Environmental Services segment reported a 6% year-over-year adjusted EBITDA growth and a consolidated adjusted EBITDA margin improvement of 100 basis points to 20.7%. The ES segment saw a 3% revenue increase, led by 12% growth in Technical Services and an 8% rise in Safety-Kleen Environmental Services. Incineration utilization was reported at 92%, excluding the ramping Kimball unit, and landfill volumes increased by 40%. The company also highlighted a successful PFAS incineration study and is expecting PFAS-related revenue to grow by 20% to 25% year-over-year, contributing $100 million to $120 million. Additionally, Clean Harbors announced a new $210 million to $220 million SDA Unit project, expected to generate annual EBITDA of $30 million to $40 million upon its 2028 launch. The company remains focused on capital allocation, with $50 million repurchased in Q3, and anticipates ending the year with record free cash flows and a strong balance sheet.Clean Harbors Financial Statement Overview
Summary
Clean Harbors exhibits strong financial performance with impressive revenue growth and profitability metrics. The company has effectively managed its leverage, resulting in a stable balance sheet. Cash flow generation remains robust, supporting future growth initiatives. Continued focus on cost management and maintaining cash flow growth will enhance financial resilience.Income Statement
Clean Harbors has demonstrated strong revenue growth with a 33.5% increase in TTM, supported by solid gross and net profit margins of 31.1% and 6.5% respectively. The EBIT and EBITDA margins are also healthy at 13.95% and 21.47%, indicating efficient operational management. However, slight declines in net income from the previous year suggest room for improvement in cost control.Balance Sheet
The company's balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.09 in TTM, reflecting reduced leverage and improved financial stability. The return on equity is robust at 14.61%, indicating effective use of shareholder funds. However, the equity ratio of 36.8% suggests moderate reliance on debt financing.Cash Flow
Cash flow analysis reveals a positive trajectory with a 17.44% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 0.76 and free cash flow to net income ratio of 0.54 highlight efficient cash management. Continued focus on maintaining cash flow growth will be beneficial.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.96B | 5.89B | 5.41B | 5.17B | 3.81B | 3.14B |
| Gross Profit | 1.85B | 1.82B | 1.66B | 1.62B | 1.20B | 1.01B |
| EBITDA | 1.12B | 1.09B | 989.57M | 997.86M | 647.73M | 544.05M |
| Net Income | 388.36M | 402.30M | 377.86M | 411.74M | 203.25M | 134.84M |
Balance Sheet | ||||||
| Total Assets | 7.54B | 7.38B | 6.38B | 6.13B | 5.65B | 4.13B |
| Cash, Cash Equivalents and Short-Term Investments | 850.37M | 789.83M | 550.80M | 554.64M | 534.30M | 570.96M |
| Total Debt | 260.48M | 3.04B | 2.49B | 2.59B | 2.70B | 1.71B |
| Total Liabilities | 4.76B | 4.80B | 4.14B | 4.21B | 4.14B | 2.79B |
| Stockholders Equity | 2.78B | 2.57B | 2.25B | 1.92B | 1.51B | 1.34B |
Cash Flow | ||||||
| Free Cash Flow | 442.92M | 345.53M | 309.60M | 279.19M | 300.29M | 232.31M |
| Operating Cash Flow | 815.57M | 777.77M | 734.55M | 626.21M | 546.00M | 430.60M |
| Investing Cash Flow | -367.32M | -903.67M | -575.05M | -388.94M | -1.51B | -199.46M |
| Financing Cash Flow | -198.05M | 377.03M | -208.89M | -187.31M | 898.25M | -88.95M |
Clean Harbors Technical Analysis
Positive
247.49
Price Trends
228.34
Positive
232.73
Positive
228.37
Positive
Market Momentum
5.10
Negative
73.35
Negative
90.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLH, the sentiment is Positive. The current price of 247.49 is above the 20-day moving average (MA) of 242.14, above the 50-day MA of 228.34, and above the 200-day MA of 228.37, indicating a bullish trend. The MACD of 5.10 indicates Negative momentum. The RSI at 73.35 is Negative, neither overbought nor oversold. The STOCH value of 90.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.54B | 35.46 | 14.64% | ― | 2.85% | -6.27% | |
76 Outperform | $89.00B | 34.81 | 29.31% | 1.50% | 15.88% | -3.11% | |
72 Outperform | $65.70B | 31.54 | 18.24% | 1.11% | 4.33% | 7.59% | |
69 Neutral | $930.44M | -27.45 | -4.17% | ― | 22.77% | 44.73% | |
69 Neutral | $6.35B | 416.63 | 0.98% | ― | 20.54% | 106.35% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $1.48B | -8.95 | -38.53% | ― | -2.91% | -67.18% |
* Industrials Sector Average
CLH
Clean Harbors
255.59
25.63
11.15%
CWST
Casella Waste
99.95
-8.74
-8.04%
NVRI
Enviri
18.53
10.13
120.60%
RSG
Republic Services
210.85
5.79
2.82%
WM
Waste Management
218.57
14.08
6.89%
MEG
Montrose Environmental Group
25.91
4.15
19.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.