Clean Harbors, Inc. (CLH)

Clean Harbors, Inc. (CLH) Industrial Operations Profile

Clean Harbors, Inc. delivers environmental and industrial services across North America, focusing on hazardous waste management and sustainability solutions. With a comprehensive service portfolio and extensive infrastructure, the company serves diverse industries, providing critical waste disposal and recycling services. Its two segments drive revenue through specialized solutions.

What Is the Investment Thesis for CLH?

Clean Harbors, Inc. presents a compelling investment case driven by its leading position in the environmental services sector and its focus on sustainability. With a market capitalization of $15.59B and a P/E ratio of 38.5, the company demonstrates strong financial health. Key value drivers include increasing regulatory stringency around waste disposal, growing demand for sustainable waste management solutions, and the company's extensive infrastructure and service offerings. The company's gross margin of 30.0% and profit margin of 6.5% reflect its operational efficiency. Upcoming catalysts include potential acquisitions and expansions into new geographic markets, while ongoing risks include economic downturns affecting industrial activity and increased competition in the waste management industry. Investors should monitor the company's ability to maintain its market share and adapt to evolving environmental regulations.

Based on FMP financials and quantitative analysis

CLH Key Highlights

• Market capitalization of $15.59B, reflecting its significant presence in the environmental services market.
• P/E ratio of 38.5, indicating investor expectations for future earnings growth.
• Gross margin of 30.0%, showcasing the company's ability to manage costs effectively.
• Profit margin of 6.5%, demonstrating profitability in a competitive industry.
• Beta of 0.94, suggesting lower volatility compared to the overall market.

Who Are CLH's Competitors?

CLH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CLH's Key Strengths?

• Comprehensive service offerings across environmental and industrial sectors.
• Extensive network of treatment and disposal facilities.
• Strong regulatory compliance and expertise.
• Established customer relationships.

What Are CLH's Weaknesses?

• Exposure to economic cycles affecting industrial activity.
• High capital expenditures for maintaining infrastructure.
• Dependence on regulatory environment and compliance costs.
• Profit margin could be higher.

What Could Drive CLH Stock Higher?

• Potential acquisitions of smaller waste management companies to expand market share.
• Increasing stringency of environmental regulations driving demand for waste disposal services.
• Growing focus on sustainability and recycling boosting demand for Safety-Kleen services.
• Infrastructure bill providing funding for environmental remediation projects.

What Are the Key Risks for CLH?

• Rich valuation — a P/E of 38.5 runs well above the Industrials sector’s ~30x, leaving little room for a miss.
• Economic downturns reducing industrial waste generation and service demand.
• Changes in environmental regulations increasing compliance costs.
• Increased competition from other waste management companies.
• Environmental liabilities and cleanup costs associated with waste disposal operations.

What Are the Growth Opportunities for CLH?

• Expansion of Environmental Services: Clean Harbors can expand its Environmental Services segment by targeting new geographic markets and industries. The increasing stringency of environmental regulations and the growing need for hazardous waste disposal create a significant market opportunity. By investing in additional treatment and disposal facilities, Clean Harbors can capitalize on the rising demand for comprehensive waste management solutions. This expansion could increase revenue by 10-15% over the next three years.
• Growth in Safety-Kleen Sustainability Solutions: The Safety-Kleen segment can grow by expanding its product offerings and service areas. The increasing focus on sustainability and recycling drives demand for services like used motor oil collection and waste fluid recycling. By enhancing its lubricant manufacturing and distribution capabilities, Clean Harbors can capture a larger share of the market for sustainable automotive and industrial products. This could boost the segment's revenue by 8-12% annually.
• Strategic Acquisitions: Clean Harbors can pursue strategic acquisitions to expand its service offerings and geographic reach. Acquiring smaller waste management companies or specialized environmental service providers can provide access to new markets and technologies. This inorganic growth strategy can accelerate the company's expansion and strengthen its competitive position. Successful acquisitions could add 5-10% to the company's overall revenue.
• Technological Innovation: Investing in innovative waste treatment and disposal technologies can improve efficiency and reduce costs. Developing advanced recycling processes and waste-to-energy solutions can enhance the company's sustainability profile and attract environmentally conscious customers. Technological advancements can also improve the safety and effectiveness of hazardous waste management. This focus on innovation can lead to a 3-5% reduction in operating costs.
• Enhanced Customer Relationships: Strengthening relationships with key customers can drive repeat business and increase customer loyalty. Providing customized waste management solutions and exceptional customer service can differentiate Clean Harbors from its competitors. By focusing on customer satisfaction and building long-term partnerships, the company can secure a stable revenue stream and expand its market share. Improved customer relationships can increase customer retention rates by 5-7%.

What Opportunities Does CLH Have?

• Expansion into new geographic markets.
• Strategic acquisitions to grow service offerings.
• Increasing demand for sustainable waste management solutions.
• Development of innovative waste treatment technologies.

What Threats Does CLH Face?

• Increased competition from other waste management companies.
• Changes in environmental regulations.
• Economic downturns reducing industrial waste generation.
• Potential environmental liabilities and cleanup costs.

What Are CLH's Competitive Advantages?

• Extensive infrastructure of treatment, disposal, and recycling facilities.
• Strong regulatory compliance and expertise in hazardous waste management.
• Established relationships with a diverse customer base.
• Comprehensive service offerings across the environmental and industrial sectors.

What Does CLH Do?

Clean Harbors, Inc., founded in 1980 and headquartered in Norwell, Massachusetts, has evolved into a premier environmental and industrial services provider in North America. The company operates through two primary segments: Environmental Services and Safety-Kleen Sustainability Solutions. The Environmental Services segment specializes in the collection, transportation, treatment, and disposal of hazardous and non-hazardous waste. This includes resource recovery, physical treatment, fuel blending, incineration, landfill disposal, wastewater treatment, lab chemicals disposal, and explosives management. The segment also offers CleanPack services, which involve the specialized handling of laboratory chemicals and household hazardous waste, along with industrial maintenance and field services. The Safety-Kleen Sustainability Solutions segment provides parts washers, automotive and industrial cleaning products, such as antifreeze and degreasers, and offers pickup and transportation services for waste recycling or disposal. This segment also manufactures and distributes lubricants, used motor oil collection, and contract blending and packaging services, catering to metal fabricators, auto maintenance providers, and general manufacturers.

What Products and Services Does CLH Offer?

• Collects, transports, and disposes of hazardous and non-hazardous waste.
• Provides resource recovery, physical treatment, and fuel blending services.
• Offers incineration, landfill disposal, and wastewater treatment solutions.
• Manages lab chemicals and household hazardous waste through CleanPack services.
• Delivers industrial maintenance and specialty industrial services.
• Manufactures and distributes automotive and industrial cleaning products.
• Provides vacuum services for removing solids and fluids from industrial equipment.

How Does CLH Make Money?

• Generates revenue through waste collection, treatment, and disposal fees.
• Sells automotive and industrial cleaning products and lubricants.
• Provides specialized services such as CleanPack and industrial maintenance.
• Offers recycling and resource recovery services for various waste streams.

What Industry Does CLH Operate In?

Clean Harbors, Inc. operates within the waste management industry, which is experiencing growth driven by increasing environmental regulations and a rising focus on sustainability. The North American waste management market is characterized by stringent compliance standards and a growing demand for hazardous waste disposal and recycling services. Clean Harbors competes with companies offering similar environmental and industrial services. The industry is expected to see continued growth, driven by industrial production and environmental awareness.

Who Are CLH's Key Customers?

• Industrial manufacturers generating hazardous and non-hazardous waste.
• Government agencies requiring environmental cleanup and waste management services.
• Automotive service providers using cleaning products and lubricants.
• Laboratories and research facilities needing lab chemical disposal services.

FY2026 estForward Outlook

Wall Street analysts project Clean Harbors, Inc. revenue of about $6.31B for fiscal 2026, with EPS near $8.61. The estimate reflects 3 contributing analysts.

CLH Valuation & Market Position

With a $15.59B market cap, Clean Harbors, Inc. sits in the large-cap segment of the market. Relative to its peer group, CLH's quantitative score of 64/100 is roughly in line with the peer average of 56/100.

ROE 14%Key Financial Metrics

Return on equity for Clean Harbors, Inc. stands at 14.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.2%, showing how much profit it generates from its asset base. CLH trades at a trailing price-to-earnings ratio of 38.46, above the Industrials sector average of ~30x. Its free cash flow yield is 3.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.34 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.6%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 6/9Financial Health

Clean Harbors, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.79 places it in the safe zone, indicating low near-term bankruptcy risk.

Company Profile

Clean Harbors, Inc. operates in the Waste Management industry within the Industrials sector. It is headquartered in Norwell, US. The company is led by CEO Eric W. Gerstenberg. CLH has traded publicly since 1987.

CLH Financials

CLH Latest News

CLH Analyst Consensus

CLH MoonshotScore

What Investors Ask About Clean Harbors, Inc. (CLH) — Industrials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources