Clean Harbors (CLH): Evaluating Valuation After Recent Share Price Rebound and Evolving Industry Opportunities

Clean Harbors (CLH) shares have shown some movement over the past month, gaining roughly 4%. Investors might be weighing recent financial results as well as the company’s long-term potential in the environmental services sector.

See our latest analysis for Clean Harbors.

Clean Harbors’ share price has been relatively steady this year, recently climbing back above $227 after a strong week and building on optimism around ongoing growth in its environmental services business. However, with a one-year total shareholder return of -12.5%, momentum has cooled in the short term. Its three- and five-year total returns remain highly impressive.

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With steady long-term returns and recent gains in revenue and profitability, investors now face a crucial question: does Clean Harbors still offer untapped value, or are markets already factoring in its future growth?

Most Popular Narrative: 9.1% Undervalued

Clean Harbors’ consensus narrative places fair value well above the latest close. This suggests current prices may not fully account for the company’s projected growth and profitability trajectory.

The growing urgency and evolving regulatory landscape around PFAS and hazardous waste management is expected to create a multibillion-dollar opportunity. 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.

Curious how much this PFAS opportunity is embedded in the numbers? The real shocker lies in future earnings per share and the premium multiple analysts are betting on. Want to uncover the bullish assumptions and bold projections behind this valuation? Check the narrative to see what could send Clean Harbors even higher.

Result: Fair Value of $250.33 (UNDERVALUED)

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

However, ongoing regulatory scrutiny and technological advances in waste treatment could challenge Clean Harbors’ current growth expectations. This may potentially limit future revenue upside.

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

Another View: Peer and Industry Pricing Raises Caution

Looking from a different angle, Clean Harbors trades at 31.3 times earnings, which is higher than both the industry average of 22.6 times and its estimated fair ratio of 25.1 times. In comparison, direct peers have an average ratio of 48.6, making Clean Harbors appear to be a relative bargain. Does this indicate additional potential, or does paying above market norms introduce new risks?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Clean Harbors Narrative

If you have a different take or want to examine the data on your own terms, you can easily build your personalized perspective in just minutes. 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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