Clean Harbors
CLH
$310.71
-0.35%
Clean Harbors, Inc. is a leading North American provider of environmental and industrial services, offering hazardous waste collection, treatment, recycling, and disposal, along with parts cleaning and used oil re-refining through its Safety-Kleen segment. As the largest player in the environmental services industry, the company differentiates itself through its extensive network of incineration, landfill, and recycling assets, which creates high barriers to entry. The current investor narrative centers on the company's ability to sustain growth through pricing power, expansion of its sustainability solutions (e.g., re-refined base oil), and the potential for margin expansion as it integrates recent acquisitions and benefits from increased demand for waste management services. Additionally, the stock's strong performance (up 29% over the past year) reflects confidence in its defensive, recession-resistant business model, though investors are closely watching the pace of organic growth and the impact of macroeconomic headwinds on industrial activity.…
CLH
Clean Harbors
$310.71
Investment Opinion: Should I buy CLH Today?
Based on the analysis, Clean Harbors is rated a 'Buy' with a thesis that its defensive business model, strong market position, and consistent cash flow generation justify a premium valuation, though the upside is moderate. The consensus rating is 'Buy' with an average target price of $359.93, implying a 13.9% upside, which aligns with our view that the stock offers a reasonable risk-reward for long-term investors.
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CLH 12-Month Price Forecast
The AI assessment is neutral with medium confidence, reflecting a balanced risk-reward profile. The company's defensive qualities and stable cash flows are positive, but the modest growth and premium valuation limit upside potential. The stock is likely to perform in line with the market over the next 12 months, with the base case of a gradual move toward the average target. An upgrade to bullish would require evidence of accelerating growth, such as revenue growth above 4% or margin expansion, while a downgrade to bearish would be triggered by a significant deterioration in industrial activity or a sharp rise in interest rates.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Clean Harbors's 12-month outlook, with a consensus price target around $359.93 and implied upside of +15.8% versus the current price.
Average Target
$359.93
0 analysts
Implied Upside
+15.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$325 - $390
Analyst target range
The target price range spans from $325.00 (low) to $390.00 (high), representing a spread of $65, or 20% of the average target. This wide range suggests significant uncertainty about the company's future performance, likely due to factors such as the pace of organic growth, potential regulatory changes, and the success of its sustainability initiatives. The high target of $390 implies a forward PE of approximately 27x, which would require either multiple expansion or stronger-than-expected earnings growth. The low target of $325 is only 2.9% above the current price, indicating that some analysts see limited upside, possibly due to concerns about margin compression or a slowdown in industrial activity. Recent institutional ratings have been predominantly positive, with no downgrades in the past three months, and several firms (Citigroup, BMO Capital, Oppenheimer, TD Cowen, Needham, Truist) maintaining Buy or Outperform ratings, suggesting that the bullish sentiment is intact.
Bulls vs Bears: CLH Investment Factors
Clean Harbors presents a balanced investment case with strong defensive characteristics, consistent profitability, and a leading market position, but faces challenges from modest growth, a premium valuation, and high leverage. The bull case is supported by the company's resilient business model, positive analyst sentiment, and sustainability-driven growth opportunities, while the bear case highlights decelerating revenue, limited upside to low targets, and financial risk from debt. Currently, the evidence slightly favors the bull side due to the company's proven ability to generate cash flow and its defensive appeal, but the key tension lies in whether the company can reaccelerate organic growth to justify its premium multiple. If growth remains sluggish, the stock could face multiple compression, while a pickup in volume or successful integration of acquisitions would likely drive the stock toward the higher end of analyst targets.
Bullish
- Defensive business with strong market position: Clean Harbors is the largest environmental services provider in North America, with a network of incineration, landfill, and recycling assets that create high barriers to entry. This defensive positioning supports stable demand even in economic downturns, as waste management is a non-discretionary service.
- Consistent profitability and cash flow generation: The company has maintained positive net income and operating cash flow, with a trailing twelve-month free cash flow of $464 million. Its operating margin of 11.2% and net margin of 6.5% demonstrate efficient cost management and a resilient business model.
- Strong analyst consensus and upside potential: With a consensus rating of 'Buy' and an average target price of $359.93, the stock offers a 13.9% upside from the current price of $315.98. The high target of $390 implies a 23.4% upside, reflecting confidence in the company's growth prospects.
- Outperformance with lower volatility: The stock has gained 29.2% over the past year, outperforming the S&P 500's 20.5% return, while its beta of 0.856 indicates lower volatility than the market. This combination of strong returns and defensive characteristics is attractive for risk-averse investors.
Bearish
- Modest revenue growth with deceleration: Revenue growth slowed to 1.9% YoY in Q1 2026, down from 4.3% in Q2 2025 and 1.3% in Q3 2025. This deceleration suggests limited volume expansion, with growth primarily driven by pricing rather than organic demand.
- Premium valuation limits upside: The trailing PE of 32.1x and forward PE of 31.8x are significantly higher than the broader market, reflecting a premium for defensive qualities. The small gap between trailing and forward PE implies minimal expected earnings growth, making the stock sensitive to any earnings disappointment.
- High debt levels increase financial risk: With a debt-to-equity ratio of 1.26, the company carries substantial leverage, which could strain cash flows if interest rates remain elevated or if earnings decline. Interest expenses of $42.8 million in Q1 2026 represent a significant fixed cost.
- Limited near-term upside to low analyst target: The low analyst target of $325 is only 2.9% above the current price, indicating that some analysts see minimal upside. This suggests that the stock may be fairly valued or even overvalued at current levels, especially if growth fails to accelerate.
CLH Technical Analysis
Clean Harbors is in a clear long-term uptrend, with the stock up 29.2% over the past year, significantly outperforming the S&P 500's 20.5% gain. The current price of $315.98 sits at 94% of its 52-week range (low of $201.34, high of $335.94), indicating that the stock is trading near its highs, which typically reflects strong momentum and investor optimism, though it also suggests limited upside in the near term without a breakout. The stock's beta of 0.856 indicates it is less volatile than the market, making it a relatively defensive holding within the industrials sector.
Beta
0.86
0.86x market volatility
Max Drawdown
-19.4%
Largest decline past year
52-Week Range
$201-$336
Price range past year
Annual Return
+27.5%
Cumulative gain past year
| Period | CLH Return | S&P 500 |
|---|---|---|
| 1m | -4.8% | +5.5% |
| 3m | +10.6% | +1.7% |
| 6m | +6.0% | +12.2% |
| 1y | +27.5% | +18.6% |
| ytd | +27.6% | +12.8% |
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CLH Fundamental Analysis
Clean Harbors' revenue growth has been modest but positive, with the most recent quarter (Q1 2026) showing revenue of $1.46 billion, up 1.9% year-over-year. However, this represents a deceleration from the prior year's growth rates, as Q2 2025 revenue was $1.55 billion (up 4.3% YoY) and Q3 2025 was $1.55 billion (up 1.3% YoY). The company's Environmental Services segment, which includes waste collection and disposal, remains the primary revenue driver, contributing approximately $1.0 billion in Q1 2026, while Safety-Kleen Sustainability Solutions added $477 million. The modest growth reflects a mature industry and pricing-driven gains rather than volume expansion, which is a key debate for investors.
Quarterly Revenue
$1.5B
2026-03
Revenue YoY Growth
+1.9%
YoY Comparison
Gross Margin
22.3%
Latest Quarter
Free Cash Flow
$464472000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is CLH Overvalued?
Given that Clean Harbors is profitable, the primary valuation metric selected is the price-to-earnings (PE) ratio. The trailing PE is 32.1x, while the forward PE is 31.8x, indicating that the market expects earnings to remain relatively stable in the near term. The small gap between trailing and forward PE suggests that analysts do not anticipate significant earnings growth over the next year, which is consistent with the company's mature industry and modest revenue growth. This is a premium valuation compared to the broader market, reflecting the company's defensive characteristics and strong market position.
PE
32.1x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 8x~45x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks stem from Clean Harbors' elevated debt levels, with a debt-to-equity ratio of 1.26 and interest expenses of $42.8 million in Q1 2026. While the company generates positive free cash flow of $464 million TTM, a significant portion is consumed by debt servicing, limiting financial flexibility. Additionally, the modest revenue growth of 1.9% YoY in Q1 2026 indicates that the company relies on pricing power rather than volume expansion, which may not be sustainable if competition intensifies or if customers resist price increases. The operating margin of 11.2% is respectable but could compress if input costs rise or if the company faces operational disruptions.