Clean Harbors (CLH): Evaluating Valuation After Quarterly Revenue Miss and Market Reaction

Clean Harbors (NYSE:CLH) just posted its latest quarterly earnings, revealing revenues were flat year on year and came in below forecasts. This shortfall versus expectations has pushed the stock downward in recent trading.

See our latest analysis for Clean Harbors.

After missing revenue forecasts in its latest quarter, Clean Harbors’ share price has felt the impact, despite a small bounce in recent days. While the most recent results weighed on sentiment, the longer-term picture remains robust, with a three-year total shareholder return of 105% and five-year return over 335%. However, the one-year total return is about -6%. This serves as a reminder that while momentum has faded lately, the company’s track record still speaks to strong value creation over time.

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The recent pullback has left Clean Harbors trading at a notable discount to analyst targets. The key question for investors now is whether this creates a real buying opportunity or if the market is already pricing in future growth.

Most Popular Narrative: 8.7% Undervalued

Clean Harbors' most popular narrative places its fair value at $266.56, roughly 8.7% higher than the last close of $243.38. This positions the company as an intriguing value outlier compared to recent market momentum.

The growing urgency and evolving regulatory landscape around PFAS and hazardous waste management is expected to create a multibillion-dollar opportunity, and Clean Harbors' unique position as the only company with end-to-end PFAS destruction capabilities positions it to capture significant long-term revenue and margin growth as new government and corporate standards take effect.

Read the complete narrative.

Want to know what’s fueling this valuation upside? The narrative hinges on game-changing trends, ambitious margin targets, and a future multiple rarely seen outside high-growth tech. The core forecast depends on several bold assumptions. Ready to see the financial bets and sector shifts driving this thesis?

Result: Fair Value of $266.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, tightening regulations or rapid advances in waste-reducing technologies could limit Clean Harbors’ growth and potentially challenge the positive long-term outlook.

Find out about the key risks to this Clean Harbors narrative.

Build Your Own Clean Harbors Narrative

If you have a different perspective or would like to dig into the numbers yourself, you can build your own take in just a few minutes with Do it your way.

A great starting point for your Clean Harbors research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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