Clean Harbors (CLH): Evaluating Valuation Following Major Refinancing and Analyst Undervaluation Signals

Clean Harbors (CLH) recently made headlines with a major refinancing move. The company issued $745 million in senior notes and secured $1.26 billion in new term loans. This shift is boosting the company’s financial flexibility while reinforcing growth prospects.

See our latest analysis for Clean Harbors.

Clean Harbors’ big refinancing move comes as the company’s stock momentum has been base-building in recent months, with the latest share price at $233.95. While the year-to-date share price return is modest at 1.94%, total shareholder return over the past five years stands out at an impressive 298%. This highlights both long-term staying power and renewed optimism for growth as investors weigh the company’s improved balance sheet and future earnings outlook.

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With the recent refinancing and signs of accelerated earnings growth, investors may be wondering if Clean Harbors is trading at a rare discount or if the market has already priced in the company’s brighter future.

Most Popular Narrative: 12.2% Undervalued

The most widely followed narrative suggests Clean Harbors has more room to run. Its fair value estimate sits well above the latest closing price, setting up a fascinating debate about the drivers of growth and the path to higher valuations.

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.

Want to know which performance levers analysts are betting on? There’s one key variable that could supercharge margins and make today’s price look cheap. The specific revenue targets and future profit assumptions in this narrative might surprise you. Uncover the growth blueprint and see what’s fueling the high expectations behind this target.

Result: Fair Value of $266.56 (UNDERVALUED)

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

However, tighter regulations or rapid innovation in waste reduction technology could challenge Clean Harbors’ current growth path and could alter these bullish assumptions.

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

Another View: Looking Through the Lens of Multiples

While analyst price targets and fair value estimates suggest Clean Harbors is undervalued, looking at its price-to-earnings ratio paints a more cautious picture. The company trades at 32.6 times earnings, higher than the U.S. Commercial Services industry average of 27.2 times and also above its own fair ratio of 28.4. This gap could hint at elevated valuation risk if market expectations reset. Is the optimism already priced in, or is there still room to run?

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

Build Your Own Clean Harbors Narrative

If you see things differently or want to dig deeper on your own, you can explore the data and craft your own Clean Harbors story in just a few 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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