Clean Harbors, Inc.
Clean Harbors, Inc. Fundamental Analysis
Clean Harbors, Inc. (CLH) shows weak financial fundamentals with a PE ratio of 38.76, profit margin of 6.48%, and ROE of 14.47%. The company generates $6.1B in annual revenue with moderate year-over-year growth of 8.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CLH's fundamental strength across five key dimensions:
Efficiency Score
WeakCLH struggles to generate sufficient returns from assets.
Valuation Score
WeakCLH trades at a premium to fair value.
Growth Score
ModerateCLH shows steady but slowing expansion.
Financial Health Score
ModerateCLH shows balanced financial health with some risks.
Profitability Score
WeakCLH struggles to sustain strong margins.
Key Financial Metrics
Is CLH Expensive or Cheap?
P/E Ratio
CLH trades at 38.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CLH's PEG of 40.09 indicates potential overvaluation.
Price to Book
The market values Clean Harbors, Inc. at 5.52 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.09 times EBITDA. This signals the market has high growth expectations.
How Well Does CLH Make Money?
Net Profit Margin
For every $100 in sales, Clean Harbors, Inc. keeps $6.48 as profit after all expenses.
Operating Margin
Core operations generate 11.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.47 in profit for every $100 of shareholder equity.
ROA
Clean Harbors, Inc. generates $5.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Clean Harbors, Inc. produces operating cash flow of $870.70M, showing steady but balanced cash generation.
Free Cash Flow
Clean Harbors, Inc. produces free cash flow of $443.83M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $8.31 in free cash annually.
FCF Yield
CLH converts 2.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
40.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How CLH Stacks Against Its Sector Peers
| Metric | CLH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.76 | 26.66 | Worse (Expensive) |
| ROE | 14.47% | 1305.00% | Weak |
| Net Margin | 6.48% | -5148.00% (disorted) | Weak |
| Debt/Equity | 1.26 | 0.82 | Weak (High Leverage) |
| Current Ratio | 2.33 | 10.84 | Strong Liquidity |
| ROA | 5.13% | -1553219.00% (disorted) | Weak |
CLH outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Clean Harbors, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.84%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
326.44%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
95.02%
Industry Style: Cyclical, Value, Infrastructure
High Growth