Clean Harbors
CLH
$287.98
-8.20%
Clean Harbors, Inc. is a leading provider of environmental and industrial services, operating primarily in the Waste Management industry within the Industrials sector. The company functions as a vertically integrated platform, offering a comprehensive suite of services including hazardous waste collection, transportation, treatment, recycling, and disposal, alongside industrial maintenance and parts cleaning, through its two main segments: Environmental Services and Safety-Kleen Sustainability Solutions. The current investor narrative centers on the company's role as a critical infrastructure player in the waste and environmental services space, with attention driven by its consistent execution, margin resilience, and the strategic value of its integrated model in a regulatory environment that increasingly favors responsible waste handling and circular economy solutions, as evidenced by its sustained revenue growth and strong cash generation.…
CLH
Clean Harbors
$287.98
CLH 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Clean Harbors's 12-month outlook, with a consensus price target around $374.37 and implied upside of +30.0% versus the current price.
Average Target
$374.37
2 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
2
covering this stock
Price Range
$230 - $374
Analyst target range
Analyst coverage for Clean Harbors is limited, with only two analysts providing estimates, indicating this is a mid-cap stock with less pervasive institutional following, which can contribute to higher volatility and less efficient price discovery. The available data shows consensus estimates for EPS averaging $13.24 and revenue averaging $7.65 billion, but a formal consensus recommendation and average price target are not provided in the dataset. The institutional ratings from major firms reveal a mixed but generally neutral-to-positive sentiment; recent actions from Wells Fargo, UBS, Barclays, and Citigroup are all at 'Equal Weight' or 'Neutral', while Truist Securities, Oppenheimer, BMO Capital, and Needham maintain 'Buy' or 'Outperform' ratings. The lack of downgrades in recent months and the presence of several bullish ratings suggest underlying fundamental strength is recognized, but the prevalence of neutral stances from larger banks indicates caution at current valuation levels. The wide dispersion in analyst views (from Neutral to Outperform) signals moderate uncertainty or differing views on the sustainability of the premium valuation.
Bulls vs Bears: CLH Investment Factors
The evidence is balanced but leans slightly bullish due to CLH's strong operational execution, cash flow generation, and powerful price trend. However, the bull case is heavily contingent on the company justifying its premium valuation through sustained growth and margin stability. The single most important tension in the investment debate is whether the company's superior cash flow and market position warrant a sustained premium P/E multiple above 30x, or if margin volatility and a mature growth profile will lead to valuation compression towards sector norms. The resolution of this valuation question will dictate the stock's next major move.
Bullish
- Strong Free Cash Flow Generation: The company generates robust free cash flow, with $441.81 million TTM, providing significant financial flexibility. This strong cash generation funds strategic growth initiatives and substantial share repurchases, directly supporting shareholder returns.
- Powerful Uptrend & Relative Strength: CLH has delivered exceptional price performance, with a 1-year return of +43.27% and a 6-month return of +47.94%, significantly outperforming the SPY. Its 1-year relative strength of +14.23 indicates the move is driven by company-specific fundamentals, not just market beta.
- Solid Revenue Growth & Profitability: Q4 2025 revenue grew 4.79% YoY to $1.50 billion, demonstrating resilience. The company maintains healthy profitability with a Q4 net margin of 5.77% and a trailing twelve-month ROE of 14.24%, indicating efficient capital allocation.
- Strong Balance Sheet & Liquidity: A current ratio of 2.33 provides ample short-term liquidity. While the debt-to-equity ratio of 1.26 indicates leverage, it is manageable given the company's consistent cash flows and profitability, supporting further strategic investments.
Bearish
- Premium Valuation at Historical Highs: The stock trades at a trailing P/E of 31.90x and a forward P/E of 33.31x, a significant premium to typical industrial/waste management peers. This P/E is near the upper end of its own historical range, leaving little room for error.
- Recent Margin Volatility & Pressure: Q4 2025 gross margin of 23.49% declined sharply from 33.32% in Q2 2025, indicating potential cost pressures or unfavorable business mix shifts. This quarterly volatility raises questions about the sustainability of profitability levels.
- Limited Analyst Coverage & Neutral Sentiment: With only two analysts providing estimates, price discovery may be less efficient. Major banks like Wells Fargo, UBS, Barclays, and Citigroup maintain 'Equal Weight' or 'Neutral' ratings, signaling caution at current valuation levels despite fundamental strength.
- Technically Overextended Near 52-Week High: The stock trades at $311.43, just 1.8% below its 52-week high of $316.98. Recent 1-month relative strength of -2.61 versus the SPY suggests momentum may be waning after a massive run-up, increasing near-term correction risk.
CLH Technical Analysis
Clean Harbors is in a powerful, sustained uptrend, evidenced by a 1-year price change of +43.27% and a 6-month surge of +47.94%. The stock closed at $311.43, which places it at approximately 96% of its 52-week high of $316.98, indicating it is trading near the top of its annual range and reflecting strong bullish momentum and potential overextension. The short-term momentum remains robust but shows signs of consolidation; the stock gained +7.37% over the past month and +19.82% over the past three months, though the 1-month relative strength of -2.61 versus the SPY suggests it has slightly lagged the broader market's recent surge of +9.98%. This divergence could signal a healthy pause or rotation after a significant run-up, rather than a trend reversal. Key technical levels are clearly defined, with immediate resistance at the 52-week high of $316.98 and support at the 52-week low of $201.34. A confirmed breakout above $317 would signal a continuation of the bullish trend, while a breakdown below the recent consolidation zone around $280-$290 would suggest a deeper correction. With a beta of 0.94, the stock exhibits slightly lower volatility than the overall market, which is notable given its strong price appreciation and suggests the moves are driven by fundamental performance rather than speculative sentiment.
Beta
0.92
0.92x market volatility
Max Drawdown
-19.4%
Largest decline past year
52-Week Range
$201-$317
Price range past year
Annual Return
+29.7%
Cumulative gain past year
| Period | CLH Return | S&P 500 |
|---|---|---|
| 1m | -3.9% | +11.4% |
| 3m | +9.8% | +8.3% |
| 6m | +38.5% | +9.4% |
| 1y | +29.7% | +31.3% |
| ytd | +18.3% | +7.6% |
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CLH Fundamental Analysis
Clean Harbors demonstrates a solid revenue trajectory, with Q4 2025 revenue of $1.50 billion representing a year-over-year growth of 4.79%. The multi-quarter trend shows revenue has been stable in the $1.43-$1.55 billion range, indicating mature, steady growth rather than explosive acceleration, with the business proving resilient. The company is consistently profitable, posting a Q4 2025 net income of $86.59 million, which translates to a net margin of 5.77%. Profitability metrics show some quarterly variability, with gross margin at 23.49% in Q4, down from 33.32% in Q2 2025, reflecting potential mix shifts or cost pressures, but the operating margin remained healthy at 10.57%. The balance sheet and cash flow position is strong, underpinned by robust free cash flow generation. The company reported trailing twelve-month free cash flow of $441.81 million, providing ample internal funding for growth and shareholder returns, as seen in significant stock repurchases. The debt-to-equity ratio of 1.26 indicates a leveraged but manageable capital structure, supported by a strong current ratio of 2.33 and a return on equity of 14.24%, showcasing efficient use of shareholder capital.
Quarterly Revenue
$1.5B
2025-12
Revenue YoY Growth
+0.04%
YoY Comparison
Gross Margin
+0.23%
Latest Quarter
Free Cash Flow
$441807000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is CLH Overvalued?
Given a positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. Clean Harbors trades at a trailing P/E of 31.90x and a forward P/E of 33.31x based on estimated EPS; the minimal gap suggests the market expects earnings growth to be roughly in line with current levels. Compared to sector averages, the stock trades at a premium; its trailing P/E of 31.9x is significantly above typical industrial/waste management peers, and its Price-to-Sales ratio of 2.07x and EV/EBITDA of 13.29x also suggest an elevated valuation. This premium is likely justified by the company's market-leading position, integrated business model, and superior profitability and cash flow generation relative to many peers. Historically, the current trailing P/E of 31.90x is near the upper end of its own range over the past several years, which has typically fluctuated between the high teens and mid-30s. Trading near historical highs implies the market is pricing in optimistic expectations for continued execution and margin stability, leaving little room for operational missteps.
PE
31.9x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 8x~53x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: The primary financial risk is margin volatility, as evidenced by the Q4 2025 gross margin compressing to 23.49% from 33.32% just two quarters prior. While the debt-to-equity ratio of 1.26 is manageable, it introduces interest expense sensitivity in a rising rate environment, with Q4 interest expense at $45.9 million. Revenue growth, while positive at 4.79% YoY in Q4, is mature and could decelerate, making it difficult to support the current premium earnings multiple if growth stalls.
Market & Competitive Risks: The paramount market risk is valuation compression. CLH trades at a trailing P/E of 31.9x and an EV/EBITDA of 13.29x, a significant premium to sector averages. Any shift in market sentiment away from growth or a single earnings miss could trigger a rapid de-rating. The stock's beta of 0.94 suggests it is not a defensive haven, and its strong outperformance (1-year relative strength of +14.23) makes it vulnerable to profit-taking and sector rotation. Competitive pressures could also intensify, pressuring pricing and margins further.
Worst-Case Scenario: The worst-case scenario involves a combination of margin pressure persisting, revenue growth slowing below 2%, and a broader market downturn compressing valuation multiples. This could trigger analyst downgrades from the current neutral/bullish mix to outright sells. A realistic downside could see the stock re-test its 52-week low of $201.34, representing a potential loss of approximately -35% from the current price of $311.43. The historical max drawdown of -19.45% suggests the stock can experience significant corrections even within its uptrend.