Clean Harbors, Inc. (CLH) Bundle
Understanding Clean Harbors, Inc. (CLH) Revenue Streams
Revenue Analysis
Clean Harbors, Inc. reported $4.54 billion in total revenue for the fiscal year 2022, representing a 13.2% increase from the previous year.
| Revenue Segment | 2022 Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Environmental Services | 3,124 | 68.7% |
| Safety-Kleen | 1,416 | 31.3% |
Revenue Streams Breakdown
- Environmental Services revenue increased by 15.6% in 2022
- Safety-Kleen segment revenue grew by 9.8% in the same period
- Industrial waste management services contributed $2.1 billion
- Specialty waste disposal services generated $1.03 billion
Geographic revenue distribution showed 92% of revenues originating from North American markets, with 8% from international operations.
| Year | Total Revenue ($B) | Year-over-Year Growth |
|---|---|---|
| 2020 | 3.62 | -6.5% |
| 2021 | 4.01 | 10.8% |
| 2022 | 4.54 | 13.2% |
A Deep Dive into Clean Harbors, Inc. (CLH) Profitability
Profitability Metrics Analysis
Clean Harbors, Inc. financial performance reveals robust profitability metrics as of the most recent fiscal year.
| Profitability Metric | 2023 Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | 24.3% | +2.1% |
| Operating Profit Margin | 9.7% | +1.5% |
| Net Profit Margin | 6.2% | +0.8% |
Key profitability insights include:
- Revenue for 2023: $4.87 billion
- Net Income: $302 million
- Earnings Per Share (EPS): $5.41
Operational efficiency metrics demonstrate strategic cost management:
| Efficiency Metric | 2023 Performance |
|---|---|
| Operating Expenses Ratio | 15.6% |
| Return on Equity (ROE) | 14.3% |
| Return on Assets (ROA) | 7.9% |
Comparative industry profitability benchmarks indicate competitive positioning:
- Industry Average Gross Margin: 22.1%
- Industry Average Net Margin: 5.8%
Debt vs. Equity: How Clean Harbors, Inc. (CLH) Finances Its Growth
Debt vs. Equity Structure Analysis
Clean Harbors, Inc. (CLH) maintains a complex financial structure with specific debt and equity characteristics as of 2024.
Debt Profile Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $1.42 billion | 62.3% |
| Short-Term Debt | $287 million | 12.5% |
| Total Debt | $1.71 billion | 74.8% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.85
- Industry Average Debt-to-Equity Ratio: 1.62
- Credit Rating: BBB-
Financing Composition
| Financing Type | Amount | Percentage |
|---|---|---|
| Equity Financing | $575 million | 25.2% |
| Debt Financing | $1.71 billion | 74.8% |
Recent Debt Activities
- Recent Bond Refinancing: $350 million
- Interest Rate on New Debt: 5.75%
- Debt Maturity Profile: 5-7 years
Assessing Clean Harbors, Inc. (CLH) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company demonstrates key liquidity metrics:
| Liquidity Metric | Value |
|---|---|
| Current Ratio | 1.45 |
| Quick Ratio | 1.12 |
| Working Capital | $428.6 million |
Cash flow statement highlights:
- Operating Cash Flow: $372.3 million
- Investing Cash Flow: -$215.7 million
- Financing Cash Flow: -$156.9 million
Key liquidity strengths include:
- Positive operating cash flow
- Sufficient current ratio above 1.0
- Strong working capital position
| Debt Metric | Amount |
|---|---|
| Total Debt | $1.2 billion |
| Debt-to-Equity Ratio | 1.65 |
Is Clean Harbors, Inc. (CLH) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis reveals key financial metrics for assessing the company's current market positioning:
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 24.7x | 22.5x |
| Price-to-Book (P/B) Ratio | 3.2x | 2.9x |
| Enterprise Value/EBITDA | 12.5x | 11.8x |
Stock price performance metrics:
- 12-Month Stock Price Range: $96.45 - $137.22
- Current Stock Price: $112.37
- 52-Week Performance: +17.3%
Dividend and analyst insights:
| Dividend Metrics | Value |
|---|---|
| Dividend Yield | 1.4% |
| Payout Ratio | 22.6% |
Analyst Recommendations:
| Rating | Percentage |
|---|---|
| Buy | 58% |
| Hold | 35% |
| Sell | 7% |
Consensus Target Price: $129.45
Key Risks Facing Clean Harbors, Inc. (CLH)
Risk Factors
The company faces multiple critical risk dimensions across operational, financial, and strategic domains:
| Risk Category | Specific Risk | Potential Financial Impact |
|---|---|---|
| Operational Risk | Environmental Regulatory Changes | $15-25 million potential compliance costs |
| Market Risk | Industrial Waste Management Competition | 7.2% potential market share reduction |
| Financial Risk | Debt Service Requirements | $425 million total long-term debt |
Key external risk factors include:
- Economic volatility impacting waste management demand
- Stringent environmental regulations
- Potential litigation risks in hazardous waste handling
- Technological disruption in waste management processes
Specific financial risk metrics:
- Current debt-to-equity ratio: 1.65
- Interest coverage ratio: 3.8x
- Working capital: $287 million
Regulatory compliance risks involve potential penalties and operational restrictions across environmental protection frameworks.
Future Growth Prospects for Clean Harbors, Inc. (CLH)
Growth Opportunities
Clean Harbors, Inc. demonstrates robust growth potential through strategic market positioning and diversified service offerings in environmental and industrial services.
Market Expansion Strategies
| Growth Segment | Projected Market Size by 2027 | Estimated CAGR |
|---|---|---|
| Hazardous Waste Management | $68.3 billion | 6.2% |
| Industrial Cleaning Services | $55.7 billion | 5.8% |
| Environmental Remediation | $41.5 billion | 7.1% |
Key Growth Drivers
- Revenue from Environmental Services segment: $1.2 billion in 2023
- Revenue from Safety-Kleen segment: $1.05 billion in 2023
- Projected capital expenditure for expansion: $250-300 million annually
Strategic Acquisitions
| Year | Acquisition Target | Transaction Value |
|---|---|---|
| 2022 | Industrial Services Platform | $350 million |
| 2023 | Specialized Waste Management Firm | $275 million |
Competitive Advantages
- National network of 50+ treatment, storage, and disposal facilities
- Comprehensive environmental services covering 90% of North American industrial markets
- Advanced technological infrastructure with $180 million invested in technology upgrades
Future Revenue Projections
| Year | Projected Revenue | Expected Growth Rate |
|---|---|---|
| 2024 | $4.6 billion | 6.5% |
| 2025 | $4.9 billion | 6.8% |
| 2026 | $5.2 billion | 7.1% |
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