NasdaqGS:HCCI

Stock Analysis Report

Executive Summary

Heritage-Crystal Clean, Inc., through its subsidiary, Heritage-Crystal Clean, LLC, provides parts cleaning, and hazardous and non-hazardous containerized waste services to small and mid-sized customers in the vehicle maintenance and manufacturing services industries in North America.

Rewards

Trading at 18.3% below its fair value

Earnings are forecast to grow 62.86% per year

Risk Analysis

Profit margins (3%) are lower than last year (6%)



Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Heritage-Crystal Clean's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HCCI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

HCCI

2.1%

US Commercial Services

1.5%

US Market


1 Year Return

8.2%

HCCI

22.4%

US Commercial Services

20.1%

US Market

Return vs Industry: HCCI underperformed the US Commercial Services industry which returned 22.4% over the past year.

Return vs Market: HCCI underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

HCCIIndustryMarket
7 Day-0.2%2.1%1.5%
30 Day-5.1%3.8%1.4%
90 Day-0.4%9.1%8.7%
1 Year8.2%8.2%26.9%22.4%22.7%20.1%
3 Year82.9%82.9%67.4%56.2%50.1%40.5%
5 Year128.1%128.1%106.4%84.3%73.1%54.1%

Price Volatility Vs. Market

How volatile is Heritage-Crystal Clean's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Heritage-Crystal Clean undervalued compared to its fair value and its price relative to the market?

18.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HCCI ($28.17) is trading below our estimate of fair value ($34.48)

Significantly Below Fair Value: HCCI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HCCI is poor value based on its PE Ratio (50x) compared to the Commercial Services industry average (26.4x).

PE vs Market: HCCI is poor value based on its PE Ratio (50x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: HCCI is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: HCCI is overvalued based on its PB Ratio (2.5x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is Heritage-Crystal Clean forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

62.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCCI's forecast earnings growth (62.9% per year) is above the savings rate (1.7%).

Earnings vs Market: HCCI's earnings (62.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HCCI's revenue (5.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HCCI's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HCCI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Heritage-Crystal Clean performed over the past 5 years?

48.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCCI has high quality earnings.

Growing Profit Margin: HCCI's current net profit margins (3%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: HCCI's earnings have grown significantly by 48.8% per year over the past 5 years.

Accelerating Growth: HCCI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HCCI had negative earnings growth (-45.6%) over the past year, making it difficult to compare to the Commercial Services industry average (0.2%).


Return on Equity

High ROE: HCCI's Return on Equity (5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Heritage-Crystal Clean's financial position?


Financial Position Analysis

Short Term Liabilities: HCCI's short term assets ($150.0M) exceed its short term liabilities ($75.8M).

Long Term Liabilities: HCCI's short term assets ($150.0M) exceed its long term liabilities ($106.4M).


Debt to Equity History and Analysis

Debt Level: HCCI's debt to equity ratio (11%) is considered satisfactory.

Reducing Debt: HCCI's debt to equity ratio has reduced from 12.4% to 11% over the past 5 years.

Debt Coverage: HCCI's debt is well covered by operating cash flow (148.3%).

Interest Coverage: HCCI's interest payments on its debt are well covered by EBIT (24.8x coverage).


Balance Sheet

Inventory Level: HCCI has a high level of physical assets or inventory.

Debt Coverage by Assets: HCCI's debt is covered by short term assets (assets are 5.1x debt).


Next Steps

Dividend

What is Heritage-Crystal Clean's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HCCI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HCCI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HCCI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HCCI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HCCI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.9yrs

Average board tenure


CEO

Brian Recatto (54yo)

3yrs

Tenure

US$2,438,430

Compensation

Mr. Brian J. Recatto has been the Chief Executive Officer and President of Heritage-Crystal Clean, Inc. since February 01, 2017. Mr. Recatto has served as Chief Executive Officer and President at OMNI Ener ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD2.44M) is about average for companies of similar size in the US market ($USD2.47M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Brian Recatto
CEO, President & Director3yrsUS$2.44m2.16% $14.1m
Bruce Bruckmann
Independent Non-Employee Director16.1yrsUS$95.00k0.52% $3.4m
Fred Fehsenfeld
Chairman of the Board0yrsUS$95.00k11.13% $72.7m
Charles Schalliol
Independent Non-Employee Director11.9yrsUS$140.00k0.22% $1.4m
Carmine Falcone
Independent Non-Employee Director11.9yrsUS$140.00k0.0086% $55.9k
Robert Willmschen
Independent Non-Employee Director11.9yrsUS$110.00k0.21% $1.3m
Paul Schumacher
Director2.2yrsUS$115.00k0.067% $438.9k

11.9yrs

Average Tenure

68yo

Average Age

Experienced Board: HCCI's board of directors are seasoned and experienced ( 11.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Heritage-Crystal Clean, Inc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Heritage-Crystal Clean, Inc
  • Ticker: HCCI
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$653.151m
  • Shares outstanding: 23.19m
  • Website: https://www.crystal-clean.com

Number of Employees


Location

  • Heritage-Crystal Clean, Inc
  • 2175 Point Boulevard
  • Suite 375
  • Elgin
  • Illinois
  • 60123
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCCINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2008

Biography

Heritage-Crystal Clean, Inc., through its subsidiary, Heritage-Crystal Clean, LLC, provides parts cleaning, and hazardous and non-hazardous containerized waste services to small and mid-sized customers in the vehicle maintenance and manufacturing services industries in North America. It operates in two segments, Environmental Services and Oil Business. The Environmental Services segment offers parts cleaning, containerized waste management, vacuum truck, antifreeze recycling, and field services. The Oil Business segment engages in the collection of used oil, the sale of recycled fuel oil, and used oil filter removal and disposal activities, as well as the re-refining of used oil into lubricant base oil and other products. This segment also collects and disposes waste water. As of March 05, 2019, the company operated through 89 branches serving approximately 90,000 customer locations. Heritage-Crystal Clean, Inc. was incorporated in 2007 and is headquartered in Elgin, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:29
End of Day Share Price2020/02/14 00:00
Earnings2019/09/07
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.