CLH

Clean Harbors, Inc.

Industrial/Transportation


Presented:09/20/2023
Price:$169.26
Cap:$9.17B
Current Price:$255.18
Cap:$13.77B

Presented

Date09/20/2023
Price$169.26
Market Cap$9.17B
Ent Value$11.11B
P/E Ratio22.66x
Book Value$39.01
Div Yield0%
Shares O/S54.15M
Ave Daily Vol332,037
Short Int2.27%

Current

Price$255.18
Market Cap$13.77B
Clean Harbors, Inc. engages in the provision of environmental, energy, and industrial services. It operates through the Environmental Services and the Safety-Kleen Sustainability Solutions segments. The Environmental Services segment consists of the technical services, industrial services, field services, and oil, gas, and lodging businesses. The Safety-Kleen Sustainability Solutions segment includes parts washer services, containerized waste services, vac services, used motor oil collection, and sale of base and blended oil products. The company was founded by Alan S. McKim in 1980 and is headquartered in Norwell, MA.

Publicly traded companies mentioned herein: 3M Co (MMM), Clean Harbors Inc (CLH), Republic Services, Inc. (RSG), Waste Connections, Inc. (WCN), Waste Management, Inc. (WM), 

Highlights

The presenter is long shares of Clean Harbors Inc (CLH), a prominent player in environmental waste management, as he believes the company is well-positioned for growth through industry consolidation and heightened regulatory changes. CLH should be able to elevate its EBITDA margins from 20% to 30% by mirroring the performance experienced by solid waste companies (e.g., WM, RSG, WCN) during a similar consolidation trend. Clean Harbors' strategic ownership of industrial incinerators in North America also gives it a better competitive position as companies increasingly look to outsource these services. Based on the company’s competitive position and changing dynamics in the industry the presenter sees the stock reaching $325-$350 per share on a DD% EBITDA CAGR through 2027, which he then discounts back. 

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Idea Discussion

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