Clean Harbors Intrinsic Value – Clean Harbors’ Estimated Fair Value is US$181, According to 2 Stage Free Cash Flow to Equity Analysis
June 16, 2023
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Clean Harbors ($NYSE:CLH), Inc. is an integrated environmental services company that provides hazardous and non-hazardous waste management services in North America. Their services include collection and disposal, recycling and re-use, treatment and disposal, and environmental management services. According to a 2 Stage Free Cash Flow to Equity analysis, the estimated fair value of Clean Harbors is US$181.
First, the company has a strong competitive position in the industry with a wide service offering and geographically diverse customer base. Second, Clean Harbors has benefited from an increase in demand for their services due to the industrialization of globalization. Third, the company has a solid balance sheet with robust cash flow and low debt. Finally, Clean Harbors has a strong management team that is committed to delivering value to shareholders.
Share Price
Clean Harbors recently saw a slight uptick in its stock price on Thursday, with the stock opening at $155.4 and closing at $157.4, representing a 0.8% increase from its previous closing price of $156.1. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Clean Harbors. More…
| Total Revenues | Net Income | Net Margin |
| 5.3k | 438.83 | 8.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Clean Harbors. More…
| Operations | Investing | Financing |
| 692.85 | -528.02 | -189.68 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Clean Harbors. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.08k | 4.1k | 36.6 |
Key Ratios Snapshot
Some of the financial key ratios for Clean Harbors are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.0% | 38.6% | 12.9% |
| FCF Margin | ROE | ROA |
| 6.3% | 21.9% | 7.0% |
Analysis – Clean Harbors Intrinsic Value
At GoodWhale, we have conducted a comprehensive assessment of the fundamentals of CLEAN HARBORS. After carefully analyzing the company’s financials, we have calculated that its intrinsic value is around $128.3, which is determined by our proprietary Valuation Line. Currently, CLEAN HARBORS’ stock is trading at $157.4, meaning it is being overvalued by 22.7%. This could be due to investors buying up the stock in anticipation of higher profits in the long run. However, with the current fundamentals in mind, investors may want to consider carefully before investing in the company. More…
Peers
Clean Harbors Inc and its competitors, Republic Services Inc, Heritage-Crystal Clean Inc, and Waste Management Inc, are all companies that provide environmental and industrial services. These services can include things like waste management, oil recycling, and chemical cleaning. While all four companies provide similar services, they each have their own unique strengths and weaknesses.
– Republic Services Inc ($NYSE:RSG)
Return on equity (ROE) is a ratio that measures the profitability of a company in relation to the equity that shareholders have invested. The higher the ROE, the more profitable the company is.
Republic Services, Inc. is an industry leader in U.S. non-hazardous solid waste and recycling. They provide integrated, non-hazardous solid waste collection, transfer, disposal, and recycling services to residential, commercial, industrial, and construction customers. As of 2022, Republic Services had a market cap of 41.18B and an ROE of 14.02%.
– Heritage-Crystal Clean Inc ($NASDAQ:HCCI)
Heritage-Crystal Clean Inc is a leading provider of environmental and industrial services. The company has a market cap of 661.49M as of 2022 and a Return on Equity of 16.76%. Heritage-Crystal Clean Inc offers a wide range of services including environmental, industrial, and oilfield services. The company’s environmental services include hazardous waste management, environmental remediation, and environmental consulting. Heritage-Crystal Clean Inc’s industrial services include industrial cleaning, waste management, and environmental consulting. The company’s oilfield services include oilfield waste management, oilfield remediation, and oilfield consulting.
– Waste Management Inc ($NYSE:WM)
Waste Management Inc is an American waste management and environmental services company. It is the largest waste management company in North America, with operations in the United States, Canada, and Mexico. The company has a market cap of 64.5B as of 2022 and a Return on Equity of 28.78%. Waste Management Inc provides waste management and environmental services to residential, commercial, and industrial customers. The company offers a range of services, including collection, transportation, and disposal of waste; recycling and resource recovery; and sustainability services.
Summary
Clean Harbors, Inc. is a leading provider of environmental services and specialty waste management services. Investment analysis of Clean Harbors reveals an estimated fair value of US$181 per share based on a two-stage free cash flow to equity current model. Clean Harbors is expected to continue its positive momentum in the near future, driven by strong demand for its services and a rapidly growing global environmental services space. As such, Clean Harbors appears to be an attractive investment opportunity for those looking for long-term growth potential.
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