NYSE:CLH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Clean Harbors, Inc. provides environmental, energy, and industrial services in North America. More Details


Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.9%

CLH

-1.9%

US Commercial Services

-0.8%

US Market


1 Year Return

-26.4%

CLH

7.8%

US Commercial Services

18.0%

US Market

Return vs Industry: CLH underperformed the US Commercial Services industry which returned 6.9% over the past year.

Return vs Market: CLH underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CLHIndustryMarket
7 Day-3.9%-1.9%-0.8%
30 Day5.8%5.2%6.8%
90 Day-5.2%10.9%8.9%
1 Year-26.4%-26.4%9.5%7.8%20.7%18.0%
3 Year6.3%6.3%50.5%40.9%41.5%32.1%
5 Year21.4%21.4%113.4%91.5%84.6%63.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Clean Harbors undervalued compared to its fair value and its price relative to the market?

26.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLH ($56.46) is trading below our estimate of fair value ($76.84)

Significantly Below Fair Value: CLH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CLH is poor value based on its PE Ratio (31.1x) compared to the US Commercial Services industry average (27.3x).

PE vs Market: CLH is poor value based on its PE Ratio (31.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CLH is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CLH is overvalued based on its PB Ratio (2.5x) compared to the US Commercial Services industry average (1.5x).


Next Steps

Future Growth

How is Clean Harbors forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLH's forecast earnings growth (22.7% per year) is above the savings rate (2.2%).

Earnings vs Market: CLH's earnings (22.7% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: CLH's revenue (4.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CLH's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLH's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Clean Harbors performed over the past 5 years?

38.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLH has high quality earnings.

Growing Profit Margin: CLH's current net profit margins (3%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: CLH has become profitable over the past 5 years, growing earnings by 38% per year.

Accelerating Growth: CLH's earnings growth over the past year (19.2%) is below its 5-year average (38% per year).

Earnings vs Industry: CLH earnings growth over the past year (19.2%) exceeded the Commercial Services industry -9.7%.


Return on Equity

High ROE: CLH's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Clean Harbors's financial position?


Financial Position Analysis

Short Term Liabilities: CLH's short term assets ($1.4B) exceed its short term liabilities ($604.9M).

Long Term Liabilities: CLH's short term assets ($1.4B) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: CLH's debt to equity ratio (133.4%) is considered high.

Reducing Debt: CLH's debt to equity ratio has increased from 116.8% to 133.4% over the past 5 years.

Debt Coverage: CLH's debt is well covered by operating cash flow (26.8%).

Interest Coverage: CLH's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Clean Harbors's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if CLH'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 CLH'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?

4.8yrs

Average management tenure


CEO

Alan McKim (65 yo)

40.75yrs

Tenure

US$4,113,899

Compensation

Mr. Alan S. McKim founded Clean Harbors, Inc. in 1980 and has been its Chairman and Chief Executive Officer since 1980 and President since September 2016. Mr. Mckim serves as the Chairman, Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD4.11M) is about average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alan McKim
Founder40.75yrsUS$4.11m6.73%
$ 211.5m
Michael Battles
Executive VP & CFO4.75yrsUS$1.65m0.13%
$ 4.1m
Eric Gerstenberg
Chief Operating Officer5.75yrsUS$3.03m0.15%
$ 4.8m
Robert Speights
Executive VP & Chief Sales Officer2.75yrsUS$1.31m0.042%
$ 1.3m
Brian Weber
Executive Vice President of Corporate Planning & Developmentno dataUS$1.22m0.11%
$ 3.5m
Eric Dugas
Senior VP of Finance & Chief Accounting Officer4.75yrsno data0.041%
$ 1.3m
Sharon Gabriel
Executive VP & Chief Information Officer2yrsno data0.034%
$ 1.1m
James Buckley
Senior Vice President of Investor Relations & Corporate Communications7.5yrsno datano data
Michael McDonald
General Counselno datano datano data
Jeffrey Knapp
Executive VP & Chief Human Resources Officerno datano data0.023%
$ 707.4k
George Curtis
Executive Vice President of Pricing & Proposalsno datano data0.088%
$ 2.8m
Michael Twohig
Executive Vice President of Safety & Risk Management2.83yrsno data0.053%
$ 1.7m

4.8yrs

Average Tenure

52yo

Average Age

Experienced Management: CLH's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan McKim
Founder40.75yrsUS$4.11m6.73%
$ 211.5m
Eugene Banucci
Independent Lead Director4.33yrsUS$251.70k0.040%
$ 1.2m
John Preston
Independent Director25.75yrsUS$210.03k0.029%
$ 899.0k
Thomas Shields
Independent Director21.75yrsUS$225.03k0.045%
$ 1.4m
Edward Galante
Independent Director10.08yrsUS$222.03k0.042%
$ 1.3m
Robert Willett
Independent Director0.83yrUS$69.97k0.0054%
$ 168.4k
Andrea Robertson
Independent Director16.33yrsUS$234.03k0.026%
$ 826.2k
Rodney Marlin
Independent Director11.17yrsUS$210.03k0.069%
$ 2.2m
Lauren States
Independent Director4.58yrsUS$210.03k0.020%
$ 638.6k
John Welch
Independent Director6.33yrsUS$222.03k0.025%
$ 799.5k

10.6yrs

Average Tenure

67yo

Average Age

Experienced Board: CLH's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CLH insiders have only sold shares 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

Clean Harbors, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Clean Harbors, Inc.
  • Ticker: CLH
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$3.141b
  • Shares outstanding: 55.64m
  • Website: https://www.cleanharbors.com

Number of Employees


Location

  • Clean Harbors, Inc.
  • 42 Longwater Drive
  • Norwell
  • Massachusetts
  • 02061-9149
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLHNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1987
CH6DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1987

Biography

Clean Harbors, Inc. provides environmental, energy, and industrial services in North America. The company operates through two segments, Environmental Services and Safety-Kleen. The Environmental Services ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:22
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.