Breaking Down Clean Harbors, Inc. (CLH) Financial Health: Key Insights for Investors

As an investor, are you keen to understand the financial stability and growth potential of Clean Harbors (CLH)? In 2024, the company reported a 7% increase in Q4 revenues, reaching $1.43 billion, and a full-year revenue of $5.89 billion. Net income for the year stood at $402.3 million, or $7.42 per diluted share, with adjusted EBITDA growing by 10% to $1.12 billion. But what do these numbers really tell us about the company's financial health and future prospects? Keep reading to unlock key insights into Clean Harbors' performance and strategic initiatives.

Clean Harbors, Inc. (CLH) Revenue Analysis

Understanding Clean Harbors, Inc.'s financial health requires a detailed look into its revenue streams. A breakdown of where the company's money comes from, how quickly it's growing, and how each part of the business contributes is essential for investors. Analyzing these aspects provides insights into the company's stability and potential for future growth. For more information, you might find this resource helpful: Exploring Clean Harbors, Inc. (CLH) Investor Profile: Who’s Buying and Why?

Clean Harbors, Inc. generates revenue from a variety of sources, including:

• Environmental Services: This includes hazardous waste management, disposal, and recycling services.
• Safety-Kleen: This segment focuses on parts cleaning, oil recycling, and related environmental services for automotive and industrial clients.
• Industrial Services: Offering services such as hydro blasting, vacuum services, and facility decontamination.

To assess the health and trajectory of Clean Harbors, it's crucial to examine the year-over-year revenue growth. While specific percentage increases or decreases fluctuate annually, consistent growth indicates a strong market position and effective strategies. For instance, looking at historical trends helps to understand if the company's revenue growth is steady, accelerating, or declining.

Each business segment contributes differently to Clean Harbors' overall revenue. Examining these contributions helps to understand where the company's strengths lie and where there might be opportunities for improvement. The following data illustrates the revenue contribution by segment for the fiscal year 2024, based on the latest available information:

Analyzing significant changes in revenue streams involves identifying factors that have led to increases or decreases in specific segments. This could include new regulations, economic shifts, acquisitions, or changes in customer demand. Understanding these dynamics is crucial for forecasting future performance and making informed investment decisions.

Clean Harbors, Inc. (CLH) Profitability Metrics

Assessing the financial health of Clean Harbors, Inc. (CLH) requires a close examination of its profitability metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. By analyzing these figures, investors can gain a better understanding of Clean Harbors' operational efficiency and overall financial performance. You might also be interested in: Exploring Clean Harbors, Inc. (CLH) Investor Profile: Who’s Buying and Why?

Profitability metrics offer a clear view of how well a company manages its costs and generates profits. These metrics include gross profit margin, operating profit margin, and net profit margin. By tracking these margins over time and comparing them to industry averages, investors can assess the company's competitive positioning and identify potential areas for improvement.

Here's a breakdown of key profitability metrics for Clean Harbors, Inc. (CLH):

• Gross Profit Margin: This ratio measures the percentage of revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit Margin: This ratio reveals the percentage of revenue remaining after deducting both COGS and operating expenses. It reflects the company's profitability from its core business operations.
• Net Profit Margin: This ratio shows the percentage of revenue that translates into net income after all expenses, including interest and taxes, are paid. It represents the company's overall profitability.

Analyzing these profitability ratios over several periods provides valuable insights into the trends and consistency of Clean Harbors' financial performance. Comparing these ratios to industry averages helps to benchmark the company's performance against its peers.

Operational efficiency is a critical component of profitability. Effective cost management and optimized gross margins can significantly impact a company's bottom line. Monitoring these trends helps investors assess how well Clean Harbors manages its resources and sustains its profitability.

For instance, let's consider some hypothetical data (note: this is for illustrative purposes only and should be replaced with actual financial data):

In this example, the increasing margins from 2022 to 2024 suggest improved operational efficiency and cost management. A higher gross profit margin indicates that Clean Harbors is controlling its production costs effectively, while rising operating and net profit margins demonstrate enhanced overall profitability.

Clean Harbors, Inc. (CLH) Debt vs. Equity Structure

Understanding how Clean Harbors, Inc. (CLH) finances its operations and growth involves looking at its debt and equity mix. This reveals insights into the company's financial strategy and risk profile. Let's explore the specifics of Clean Harbors' debt levels, debt-to-equity ratio, and financing activities.

As of the fiscal year 2024, Clean Harbors' financial structure includes a mix of debt and equity. While specific figures fluctuate, examining recent financial statements provides a clearer picture:

• Long-term and Short-term Debt: Clean Harbors utilizes both long-term and short-term debt to fund its operations and investments.
• Debt-to-Equity Ratio: Monitoring this ratio helps to understand the extent to which Clean Harbors is using debt to finance its assets relative to the value of shareholders' equity.
• Recent Debt Activities: Keeping track of any new debt issuances, credit rating changes, or refinancing efforts offers insights into the company's financial management and market perception.

Clean Harbors strategically balances debt and equity to optimize its capital structure. The specifics can be gleaned from their financial reports. Based on the latest available data from their 2024 fiscal year:

• Total Debt: Clean Harbors has a substantial amount of total debt, reflecting its investments in infrastructure and acquisitions.
• Equity: The company's equity reflects the accumulated investments of shareholders and retained earnings.

Clean Harbors' approach to balancing debt and equity is crucial for sustaining growth and managing financial risk. The company's financial strategy aims to maintain a healthy balance that supports operational efficiency and shareholder value. For more insights into Clean Harbors' strategic direction, check out: Mission Statement, Vision, & Core Values of Clean Harbors, Inc. (CLH).

Clean Harbors, Inc. (CLH) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Clean Harbors, Inc. (CLH), assessing these metrics provides valuable insights into its financial stability and risk profile. You might also be interested in Exploring Clean Harbors, Inc. (CLH) Investor Profile: Who’s Buying and Why?

Assessing Clean Harbors, Inc.'s Liquidity:

• Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps in understanding the company’s efficiency in managing its short-term resources.
• Cash Flow Statements Overview: Examining the cash flow statement provides a clear picture of how Clean Harbors, Inc. (CLH) generates and uses cash from its operating, investing, and financing activities.
• Potential Liquidity Concerns or Strengths: Identifying any areas of concern or strength in the company’s liquidity position is crucial for investors.

Let's delve into these aspects with the available data.

Liquidity Positions

The most recent data indicates the following liquidity positions for Clean Harbors, Inc. (CLH):

• Current Ratio (December 31, 2023): 1.43
• Quick Ratio (December 31, 2023): 1.23

A current ratio of 1.43 suggests that Clean Harbors, Inc. (CLH) has $1.43 of current assets for every $1.00 of current liabilities. Similarly, a quick ratio of 1.23 indicates that the company has $1.23 of liquid assets (excluding inventory) to cover each dollar of current liabilities. These ratios indicate a reasonably healthy liquidity position.

Working Capital

As of December 31, 2023, Clean Harbors, Inc. (CLH) reported working capital of $557.5 million. This figure represents the difference between the company's current assets ($1,797.1 million) and current liabilities ($1,239.6 million). Tracking these values over time provides insights into the company's ability to manage its short-term assets and liabilities effectively.

Cash Flow Statement Overview

Analyzing the cash flow statement for the year 2023 provides a deeper understanding of Clean Harbors, Inc.'s cash management:

The cash flow statement reveals that Clean Harbors, Inc. (CLH) generated significant cash from its operations ($781.1 million). However, it used cash for investing ($348.4 million) and financing activities ($244.9 million). The net increase in cash for the year was $186.4 million, reflecting a positive overall cash flow trend.

Potential Liquidity Concerns or Strengths

Strengths:

• Strong cash flow from operating activities indicates the company’s ability to generate cash from its core business.
• Healthy current and quick ratios suggest a solid capacity to meet short-term obligations.

Considerations:

• Significant cash outflows for investing activities may warrant further investigation to ensure these investments generate adequate returns.
• Monitoring working capital trends is essential to ensure efficient management of short-term assets and liabilities.

In summary, Clean Harbors, Inc. (CLH) demonstrates a robust liquidity position supported by healthy cash flow from operations and reasonable current and quick ratios. While investing activities require monitoring, the overall financial health appears stable.

Clean Harbors, Inc. (CLH) Valuation Analysis

Determining whether a company is overvalued or undervalued is a critical task for investors. This section assesses Clean Harbors, Inc. (CLH) through key financial ratios and analyst insights to provide a comprehensive valuation perspective.

Is Clean Harbors, Inc. (CLH) Overvalued or Undervalued?

Several metrics can help evaluate whether Clean Harbors, Inc. (CLH) is correctly priced by the market:

• Price-to-Earnings (P/E) Ratio: As of April 2025, Clean Harbors' P/E ratio is approximately 27.45 to 30.9. This indicates the multiple of earnings investors are willing to pay for a share of Clean Harbors stock. The P/E ratio has fluctuated, with a low of 15.0 at the end of 2022. The mean historical P/E ratio of Clean Harbors over the last ten years is 58.45. The current 27.45 price-to-earnings ratio is 53% less than the historical average.
• Price-to-Book (P/B) Ratio: The P/B ratio for Clean Harbors in April 2025 is around 4.20 to 4.41. This ratio compares the company's market value to its book value, with values above 1 suggesting the market values the company more than its assets are worth on paper.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: Clean Harbors' latest EV/EBITDA is 11.72 to 12.6x. Over the past five years, the company's EV/EBITDA has varied, peaking at 12.6x in December 2024 and hitting a low of 9.0x in December 2022. Clean Harbors's EV/EBITDA for fiscal years ending December 2020 to 2024 averaged 11.0x.

Stock Price Trends

Analyzing the stock price movement over the past year provides context on investor sentiment and market dynamics:

• Over the last 12 months, Clean Harbors' stock price has increased by approximately 5.83% to 8.40%.
• The stock's 52-week range is between $178.29 and $267.11.

Here is a snapshot of Clean Harbors' EV/EBITDA over the recent years:

Dividend Yield and Payout Ratios

Dividend metrics are essential for income-focused investors:

• Clean Harbors does not currently pay a dividend. The current dividend yield for Clean Harbors as of April 11, 2025 is 0.00%.
• Consequently, the dividend payout ratio is also 0.00%.

Analyst Consensus

Professional analysts' opinions can offer valuable insights into the stock's potential:

• The consensus rating for Clean Harbors stock is 'Moderate Buy' or 'Strong Buy'.
• The average 12-month price target from analysts is approximately $260.40 to $264.67, with forecasts ranging from a low of $205.00 to a high of $325.00.
• This average price target represents a potential upside of about 25.65% to 27.90% from the current price.

For more insights into Clean Harbors' investors, explore this resource: Exploring Clean Harbors, Inc. (CLH) Investor Profile: Who’s Buying and Why?

Clean Harbors, Inc. (CLH) Risk Factors

Clean Harbors, Inc. (CLH) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in the company's filings and earnings reports.

Industry Competition: The environmental services sector is highly competitive. Clean Harbors competes with numerous national, regional, and local firms. Increased competition could lead to price reductions, decreased profit margins, and loss of market share. To maintain its competitive edge, Clean Harbors must continuously innovate and adapt its services and technologies. This is compounded by the fact that some competitors may have greater financial or technical resources.

Regulatory Changes: As an environmental services company, Clean Harbors is subject to extensive and evolving environmental regulations at the federal, state, and local levels. Changes in these regulations can increase compliance costs, require significant capital expenditures, and potentially limit the company's operations. For example, stricter waste disposal standards or new regulations on chemical handling could necessitate costly upgrades to facilities and equipment.

Market Conditions: Economic downturns can significantly affect the demand for Clean Harbors' services. During recessions, industrial production often decreases, leading to a reduction in the generation of hazardous waste, which in turn lowers the demand for disposal and recycling services. Additionally, fluctuations in commodity prices, particularly oil, can impact the profitability of the company's energy and industrial services segment.

Operational Risks: Clean Harbors' operations involve the handling and disposal of hazardous materials, which inherently carries risks of accidents, spills, and other environmental incidents. Such incidents can result in significant financial liabilities, including remediation costs, fines, and legal claims. The company must maintain robust safety protocols and emergency response plans to mitigate these risks. Furthermore, Clean Harbors relies on a network of facilities and equipment, and any disruptions to these assets, whether due to natural disasters, equipment failures, or other unforeseen events, can negatively impact its operations and financial performance.

Financial Risks: Maintaining financial stability is critical. Clean Harbors manages its financial risks through various strategies, but challenges remain. These include:

• Debt Levels: High levels of debt could constrain the company's ability to invest in growth opportunities or respond to competitive pressures.
• Interest Rate Fluctuations: Changes in interest rates could increase borrowing costs, affecting profitability.
• Credit Market Conditions: Access to capital markets is essential for funding operations and strategic initiatives. Unfavorable credit market conditions could limit the company's financial flexibility.

Strategic Risks: Strategic risks involve the company's ability to execute its long-term plans and adapt to changing market dynamics. This includes:

• Integration of Acquisitions: Clean Harbors has grown through acquisitions, and successfully integrating these acquisitions is crucial for realizing synergies and achieving financial targets.
• Technological Changes: The environmental services industry is subject to technological advancements, and Clean Harbors must invest in and adopt new technologies to remain competitive.
• Labor relations: Clean Harbors employs a large workforce, and maintaining positive labor relations is essential for avoiding disruptions to operations.

Clean Harbors, Inc. (CLH) mitigates risks through comprehensive strategies, as detailed in their reports. These strategies are designed to address specific operational, financial, and strategic challenges. Investors can gain further insights into Clean Harbors, Inc. (CLH) by reading Exploring Clean Harbors, Inc. (CLH) Investor Profile: Who’s Buying and Why?.

Clean Harbors, Inc. (CLH) Growth Opportunities

Clean Harbors, Inc. (CLH) demonstrates strong potential for future growth, driven by several key factors. These include strategic acquisitions, market expansion, and innovative service offerings.

Here’s a detailed look at the elements propelling Clean Harbors, Inc. (CLH) forward:

• Acquisitions: Clean Harbors, Inc. (CLH) has a history of expanding its capabilities and market reach through strategic acquisitions. These acquisitions often bring new technologies, specialized expertise, and access to new geographic markets.
• Market Expansion: The company is well-positioned to benefit from the increasing demand for environmental services. Tighter environmental regulations and growing corporate focus on sustainability are expected to drive market expansion.
• Service Innovations: Clean Harbors, Inc. (CLH) continually invests in new technologies and service offerings to meet the evolving needs of its customers. This includes developing more efficient and sustainable waste management solutions.

Clean Harbors, Inc. (CLH) reported a revenue of $5.48 billion for the fiscal year 2024. Looking ahead, analysts predict continued revenue growth, with estimates suggesting a rise to approximately $5.8 billion in fiscal year 2025. This growth is underpinned by increasing demand for environmental services and the full integration of acquired businesses.

Earnings estimates also paint a positive picture. The company's earnings per share (EPS) is projected to increase, reflecting improved operational efficiencies and higher revenue. Strategic initiatives, such as expanding the company’s service network and optimizing its waste management processes, are expected to further enhance profitability.

Clean Harbors, Inc. (CLH) is actively pursuing several strategic initiatives and partnerships that are expected to drive future growth:

• Sustainability Solutions: Focusing on providing comprehensive sustainability solutions to help businesses reduce their environmental impact.
• Digital Transformation: Implementing digital technologies to improve operational efficiency and enhance customer service.
• Strategic Partnerships: Collaborating with other companies and organizations to expand its service offerings and market reach.

Clean Harbors, Inc. (CLH) possesses several competitive advantages that position it favorably for future growth:

• Extensive Service Network: Clean Harbors, Inc. (CLH) operates a vast network of facilities and service locations, providing a significant competitive edge in terms of geographic coverage and service capabilities.
• Broad Range of Services: Clean Harbors, Inc. (CLH) offers a comprehensive suite of environmental and industrial services, making it a one-stop shop for customers with diverse needs.
• Strong Reputation: Clean Harbors, Inc. (CLH) has built a strong reputation for reliability, expertise, and safety, which helps it attract and retain customers.

Here is a summary of key financial projections and growth strategies for Clean Harbors, Inc. (CLH):

For more insights into Clean Harbors, Inc. (CLH) and its investor profile, check out: Exploring Clean Harbors, Inc. (CLH) Investor Profile: Who’s Buying and Why?