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Clean Harbors (CLH) Gains From Rising Operational Efficiency
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Clean Harbors, Inc’s. (CLH - Free Report) strategic capital investments, aimed at enhancing operational efficiency, diversifying service portfolios and acquisitions, are poised to propel the company's growth. Rising selling, general and administrative expenses pressurize the bottom line.
CLH has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
CLH has gained 50.3% in the year-to-date period, outperforming its industry’s 6.4% growth in the same time frame and the S&P 500 composites’ 16.4% rise.
Clean Harbors focused on efficiency in 2021 through tech, cost management, and site consolidation. Strategic investments near TSDFs aim to reduce costs, increase market share, and boost profitability by handling more waste in existing facilities.
Clean Harbors has expanded through acquisitions, including the 2022 acquisition of two privately-owned businesses for a combined total of $91.3 million. These acquisitions notably strengthened the waste oil collection and re-refining operations of the Safety-Kleen Sustainability Solutions segment, with a focus on expanding the presence in the southern United States.
In 2021, Clean Harbors completed the purchase of HydroChemPSC from an affiliate of Littlejohn & Co., LLC, for $1.25 billion in cash. This deal is expected to generate multiple cross-selling opportunities. Apart from this, Clean Harbors also acquired a privately-owned business for $22.8 million. The acquisition expands the Safety-Kleen Sustainability Solutions segment's network within the south-central United States.
In 2020, the company acquired a privately-owned business for $8.8 million. This acquisition expands the Safety-Kleen Sustainability Solutions segment's oil re-refining operations to the northeast United States. Thus, acquisitions have been helping Clean Harbors expand its business across multiple lines of services and contributing to its top-line growth, thereby acting as key growth catalyst.
Clean Harbors' ongoing commitment to shareholder value is evident through its consistent share repurchases. In 2022, 2021, 2020, and 2019, the company repurchased shares worth $50.2 million, $54.4 million, $74.8 million, and $21.4 million, respectively. These actions underscore the company's confidence in its business and dedication to creating value for shareholders. Beyond bolstering investor confidence, these initiatives have a favorable impact on earnings per share.
Threats to CLH
Clean Harbors faces seasonal demand fluctuations due to harsh weather, reducing waste volumes and increasing costs in Q1, impacting revenues and risk. The company has a history of slower fourth quarter.
Clean Harbors has been witnessing increasing selling, general and administrative expenses in the past years. The company has incurred $627.4 million in 2022, $538 million in 2021 and $451 million in 2020, indicating 19.3% growth in 2022 and 16.6% growth in 2021.
Clean Harbors' current ratio at the end of second-quarter 2023 was pegged at 2.02, lower than 2.05 reported at the end of the prior quarter. It indicates that the company might have problems meeting its short-term obligations.
CLH currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Here are a few other top-ranked stocks from the Business Services sector:
DocuSign (DOCU - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 25.6%. The current year Zacks Consensus Estimate for revenues indicate an 8.1% increase from the year-ago figure. The consensus mark for earnings is pegged at $2.52 per share, indicating 24.1% year-over-year growth. DOCU currently sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
CRA International (CRAI - Free Report) has beaten the Zacks Consensus Estimate in two of the four trailing quarters and missed on two instances, the earning surprise being 5.1%. The current Zacks Consensus Estimate for revenues indicate an 6.6% increase from the year-ago figure. The consensus mark for earnings is pegged at $5.49 per share, indicating 7.6% year-over-year decline. CRAI has a Zacks Rank of 2 at present.
ABM Industries (ABM - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 2.64%. The current Zacks Consensus Estimate for revenues indicate an 3.5% increase from the year-ago figure. The consensus mark for earnings is pegged at $3.51 per share, indicating 4.1% year-over-year decline. ABM has a Zacks Rank of 2 at present.
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Clean Harbors (CLH) Gains From Rising Operational Efficiency
Clean Harbors, Inc’s. (CLH - Free Report) strategic capital investments, aimed at enhancing operational efficiency, diversifying service portfolios and acquisitions, are poised to propel the company's growth. Rising selling, general and administrative expenses pressurize the bottom line.
CLH has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
CLH has gained 50.3% in the year-to-date period, outperforming its industry’s 6.4% growth in the same time frame and the S&P 500 composites’ 16.4% rise.
Clean Harbors, Inc. Price
Clean Harbors, Inc. price | Clean Harbors, Inc. Quote
Factors in Support
Clean Harbors focused on efficiency in 2021 through tech, cost management, and site consolidation. Strategic investments near TSDFs aim to reduce costs, increase market share, and boost profitability by handling more waste in existing facilities.
Clean Harbors has expanded through acquisitions, including the 2022 acquisition of two privately-owned businesses for a combined total of $91.3 million. These acquisitions notably strengthened the waste oil collection and re-refining operations of the Safety-Kleen Sustainability Solutions segment, with a focus on expanding the presence in the southern United States.
In 2021, Clean Harbors completed the purchase of HydroChemPSC from an affiliate of Littlejohn & Co., LLC, for $1.25 billion in cash. This deal is expected to generate multiple cross-selling opportunities. Apart from this, Clean Harbors also acquired a privately-owned business for $22.8 million. The acquisition expands the Safety-Kleen Sustainability Solutions segment's network within the south-central United States.
In 2020, the company acquired a privately-owned business for $8.8 million. This acquisition expands the Safety-Kleen Sustainability Solutions segment's oil re-refining operations to the northeast United States. Thus, acquisitions have been helping Clean Harbors expand its business across multiple lines of services and contributing to its top-line growth, thereby acting as key growth catalyst.
Clean Harbors' ongoing commitment to shareholder value is evident through its consistent share repurchases. In 2022, 2021, 2020, and 2019, the company repurchased shares worth $50.2 million, $54.4 million, $74.8 million, and $21.4 million, respectively. These actions underscore the company's confidence in its business and dedication to creating value for shareholders. Beyond bolstering investor confidence, these initiatives have a favorable impact on earnings per share.
Threats to CLH
Clean Harbors faces seasonal demand fluctuations due to harsh weather, reducing waste volumes and increasing costs in Q1, impacting revenues and risk. The company has a history of slower fourth quarter.
Clean Harbors has been witnessing increasing selling, general and administrative expenses in the past years. The company has incurred $627.4 million in 2022, $538 million in 2021 and $451 million in 2020, indicating 19.3% growth in 2022 and 16.6% growth in 2021.
Clean Harbors' current ratio at the end of second-quarter 2023 was pegged at 2.02, lower than 2.05 reported at the end of the prior quarter. It indicates that the company might have problems meeting its short-term obligations.
CLH currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Here are a few other top-ranked stocks from the Business Services sector:
DocuSign (DOCU - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 25.6%. The current year Zacks Consensus Estimate for revenues indicate an 8.1% increase from the year-ago figure. The consensus mark for earnings is pegged at $2.52 per share, indicating 24.1% year-over-year growth. DOCU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRA International (CRAI - Free Report) has beaten the Zacks Consensus Estimate in two of the four trailing quarters and missed on two instances, the earning surprise being 5.1%. The current Zacks Consensus Estimate for revenues indicate an 6.6% increase from the year-ago figure. The consensus mark for earnings is pegged at $5.49 per share, indicating 7.6% year-over-year decline. CRAI has a Zacks Rank of 2 at present.
ABM Industries (ABM - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 2.64%. The current Zacks Consensus Estimate for revenues indicate an 3.5% increase from the year-ago figure. The consensus mark for earnings is pegged at $3.51 per share, indicating 4.1% year-over-year decline. ABM has a Zacks Rank of 2 at present.