Clean Harbors Inc
CLH
Hazardous Waste Management
Mkt Cap
$8.647BPE
23.89Debt
$2.328BCash
$336MEV
$10.64BFCF
$311.9MP/E Ratio
23.89Debt
$2.328BCash
$336MEV
$10.64BFCF
$311.9MClean Harbors, Inc. provides environmental and industrial services in the United States and internationally. The company operates through two segments: The Environmental Services and The Safety-Kleen Sustainability Solutions. The Environmental Services segment collects, transports, treats, and disposes hazardous and non-hazardous waste, such as resource recovery, physical treatment, fuel blending, incineration, landfill disposal, wastewater treatment, lab chemicals disposal, and explosives management services; and offers CleanPack services, including collection, identification, categorization, specialized packaging, transportation, and disposal of laboratory chemicals and household hazardous waste. This segment also provides industrial maintenance and specialty industrial services; and utilizes specialty equipment and resources that performs field services. The Safety-Kleen Sustainability Solutions segment provides pickup and transportation services for hazardous and non-hazardous containerized waste for recycling or disposal; machine cleaning and maintenance, and disposal and replenishment of clean solvent or aqueous fluids; and vacuum services to remove solids, residual oily water, and sludge and other fluids from customers' oil/water separators, sumps, and collection tanks, as well as removes and collects waste fluids found at large and small industrial locations, including metal fabricators, auto maintenance providers, and general manufacturers. This segment also manufactures, formulates, packages, distributes, and markets lubricants and other automotive products. Clean Harbors, Inc. was incorporated in 1980 and is headquartered in Norwell, Massachusetts.
Sector
DCF
Discounted Cash Flow Valuation of Clean Harbors Inc
Value
Growth
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%
Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $311.9M | $373.1M | $440.3M | $512.3M | $587.9M | $665M | $741.4M | $814.6M | $881.8M | $940.2M | $987.2M | $9.872B |
| DCF | $324.5M | $332.9M | $336.9M | $336.1M | $330.6M | $320.5M | $306.2M | $288.3M | $267.3M | $244M | $2.44B | |
| Value | $5.527B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 40%
Earnings Stability 44%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -0.83% | 1.3% | -1.4% | 3.4% | 2% | 2.9% | 4.3% | 5.3% | 8% | 6.8% |
| ROA | 3% | 5.5% | 1.9% | 3.4% | 4.9% | 5.6% | 6.1% | 6.2% | 10% | 9.5% |
| ROE | -2.2% | 4% | -3.7% | 8.5% | 5.6% | 7.7% | 10% | 13% | 21% | 17% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +4.31%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.98%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +6.08%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.11%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +11.11%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +2.59%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 35.09 | 10.02 | 40.88 | 13.84 | 8.82 | 8.02 | 6.71 | 8.43 | 8.71 | 7.46 |
| Debt Equity | 1.10 | 1.27 | 1.52 | 1.38 | 1.36 | 1.24 | 1.17 | 1.69 | 1.27 | 1.06 |
| MIN | ||||||||||
| Graham Stability | - | - | -110% | - | 100% | 100% | 100% | 100% | 100% | -110% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 7.46.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.80.
What is the Graham’s Stability?
Graham’s Stability measure stands at -1.07.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 6.7% | 12% | 15% | 36% | 4% |
| Net Income | 38% | 33% | 62% | 100% | 28% |
| Stockholders Equity | 8.4% | 10% | 15% | 27% | 4.3% |
| FCF | 11% | 19% | 13% | -7.6% | -6.9% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +11.9%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +4.04%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +32.52%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +27.67%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +10.1%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +4.27%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +18.82%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -6.9%.