Clean Harbors
CLH
$303.74
-0.89%
Clean Harbors is an environmental and industrial services provider, offering waste collection, treatment, recycling, and disposal, along with industrial maintenance and used oil collection and re-refining. As a market leader in the North American waste management industry, the company operates through two segments: Environmental Services and Safety-Kleen Sustainability Solutions. The current investor narrative centers on the company's ability to sustain growth amid a moderating macroeconomic environment, with attention on margin trends in its Safety-Kleen oil business and the potential for regulatory tailwinds from increased environmental compliance. Recent quarterly results showed modest revenue growth of 1.9% year-over-year, with the market closely watching the trajectory of industrial demand and pricing power.…
CLH
Clean Harbors
$303.74
CLH 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Clean Harbors's 12-month outlook, with a consensus price target around $330.07 and implied upside of +8.7% versus the current price.
Average Target
$330.07
0 analysts
Implied Upside
+8.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$305 - $356
Analyst target range
Clean Harbors is covered by 14 analysts, with a consensus recommendation of 'Buy' (mean rating 1.67 on a 1-5 scale). The average price target is $327.14, implying approximately 5.3% upside from the current price of $310.58. The distribution shows 8 Buy, 5 Hold, and 1 Sell, indicating a generally bullish but cautious sentiment. The target range spans from $305 (low) to $350 (high), with the low target suggesting a potential 1.8% downside and the high target implying 12.7% upside. The wide spread of $45 (14.7% of the average target) reflects moderate uncertainty about the company's growth trajectory. Recent ratings from firms like Citigroup (Buy), BMO Capital (Outperform), and Needham (Buy) reinforce positive sentiment, while Barclays and UBS maintain Equal Weight/Neutral stances, indicating some caution on valuation or near-term headwinds.
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Bulls vs Bears: CLH Investment Factors
Clean Harbors presents a balanced investment case with strong free cash flow, a healthy balance sheet, and a dominant market position in environmental services. The bull case is supported by regulatory tailwinds and analyst optimism, while the bear case highlights decelerating revenue growth, margin compression, and a premium valuation relative to peers. Currently, the bull case has slightly stronger evidence given the company's cash flow generation and market leadership, but the key tension is whether the company can re-accelerate revenue growth and stabilize margins to justify its 32x P/E. If growth remains sluggish or margins continue to compress, the stock could de-rate toward the industry average P/E of 22x, representing significant downside. Conversely, if regulatory tailwinds boost demand and margins recover, the stock could reach the analyst high target of $350.
Bullish
- Market Leader with Recurring Revenue: Clean Harbors is the largest environmental services provider in North America, with a diversified customer base across commercial, industrial, and automotive sectors. Its waste collection, treatment, and disposal services generate recurring revenue, providing stability even in economic downturns.
- Strong Free Cash Flow Generation: The company generated $464.5 million in free cash flow over the trailing twelve months, representing a robust free cash flow yield of approximately 3.7% relative to its market cap. This cash flow supports share repurchases ($25 million in Q1 2026) and potential debt reduction.
- Healthy Balance Sheet and Liquidity: With a current ratio of 2.33 and debt-to-equity of 1.26, Clean Harbors maintains a solid financial position. The manageable leverage and ample liquidity reduce bankruptcy risk and provide flexibility for strategic investments.
- Analyst Consensus Buy with Upside: The stock has a consensus rating of 'Buy' (mean 1.67 on 1-5 scale) from 14 analysts, with an average price target of $327.14, implying 5.3% upside from the current price of $310.58. The high target of $350 suggests potential 12.7% upside.
Bearish
- Decelerating Revenue Growth: Revenue growth slowed to 1.9% YoY in Q1 2026, down from 8.3% in Q2 2025. This deceleration suggests softening industrial demand and could pressure earnings if the trend continues.
- Gross Margin Compression: Gross margin fell to 22.3% in Q1 2026 from 28.6% in Q1 2025, a decline of 630 basis points. This compression may be due to mix shifts or cost inflation, and if sustained, it could erode profitability.
- Premium Valuation Relative to Peers: The trailing P/E of 32.1x is 46% above the estimated industry average of 22x. While the premium may be justified by higher ROE (14.2% vs. 12%), it leaves limited margin of safety and increases vulnerability to multiple compression.
- Limited Near-Term Upside to Analyst Targets: The average analyst target of $327.14 implies only 5.3% upside, and the low target of $305 suggests potential 1.8% downside. This narrow risk/reward profile may not compensate for the premium valuation.
CLH Technical Analysis
Clean Harbors is in a sustained uptrend, with the stock up 35.7% over the past year, significantly outperforming the S&P 500's 18.4% gain. The current price of $310.58 sits at 98% of its 52-week range (high $316.98, low $201.34), indicating strong momentum and positioning near the upper end of its historical band. This level suggests the stock is pricing in positive expectations, though it also raises the risk of a pullback if catalysts disappoint. Short-term momentum is mixed: the stock gained 8.1% over the past month but only 3.3% over the past three months, showing a deceleration from the longer-term trend. The one-month relative strength versus the S&P 500 is a strong +7.8%, but the three-month relative strength is slightly negative at -1.4%, hinting at a potential loss of near-term momentum. The stock's beta of 0.87 indicates it is less volatile than the market, which may appeal to risk-averse investors. Key support lies at the 52-week low of $201.34, while resistance is at the 52-week high of $316.98. A breakout above $316.98 would signal a continuation of the uptrend, while a breakdown below recent support near $280 could indicate a shift to a range-bound or corrective phase.
Beta
0.86
0.86x market volatility
Max Drawdown
-19.4%
Largest decline past year
52-Week Range
$201-$317
Price range past year
Annual Return
+31.5%
Cumulative gain past year
| Period | CLH Return | S&P 500 |
|---|---|---|
| 1m | +1.7% | +0.8% |
| 3m | -1.7% | +3.5% |
| 6m | +17.0% | +7.2% |
| 1y | +31.5% | +16.5% |
| ytd | +24.8% | +8.4% |
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CLH Fundamental Analysis
Revenue growth has been modest but positive, with Q1 2026 revenue of $1.46 billion, up 1.9% year-over-year from $1.43 billion in Q1 2025. However, the growth rate has decelerated from the 8.3% YoY growth seen in Q2 2025, suggesting a softening demand environment. Segment data shows Technical Services ($448M) and Industrial Services ($303M) as the largest contributors, while Safety-Kleen Oil ($139M) is a smaller but potentially volatile segment tied to oil prices. The company's profitability remains solid, with net income of $63.2 million in Q1 2026 and a trailing net margin of 6.5%. Gross margin compressed to 22.3% in Q1 2026 from 28.6% in Q1 2025, likely due to mix shifts or cost pressures, though operating margin held at 8.1%. The company has a healthy balance sheet with a current ratio of 2.33 and manageable debt-to-equity of 1.26. Free cash flow over the trailing twelve months was $464.5 million, providing ample liquidity for internal investments and share repurchases ($25M in Q1 2026). Return on equity stands at 14.2%, indicating efficient capital use.
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?
Since Clean Harbors is profitable with net income of $63.2 million in Q1 2026, the primary valuation metric is the P/E ratio. The trailing P/E is 32.1x, while the forward P/E is 32.3x, implying the market expects stable earnings growth. The gap between trailing and forward P/E is negligible, suggesting limited near-term growth expectations are priced in. Compared to the waste management industry, Clean Harbors trades at a premium: its P/E of 32.1x is above the industry average of 22x (estimated), a 46% premium. This premium may be justified by its higher ROE (14.2% vs. industry ~12%) and strong market position, but it also leaves less room for error. Historically, the stock's P/E has ranged from 8x (mid-2022) to 60x (Q1 2026), with the current 32x near the middle of that range. This suggests the valuation is not extreme but reflects a balanced view of growth and risk.
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 & Operational Risks: Clean Harbors faces margin pressure, with gross margin declining from 28.6% in Q1 2025 to 22.3% in Q1 2026, a 630 bps drop. This could be due to cost inflation or unfavorable mix, and if sustained, it would compress net margins (currently 6.5%). The company's debt-to-equity of 1.26 is manageable but not negligible, and interest expense of $42.8 million in Q1 2026 consumes a portion of operating income ($118.9 million). Revenue growth decelerated to 1.9% YoY, indicating potential demand softness in industrial end markets. Free cash flow of $464.5 million TTM provides a cushion, but if growth stalls, the premium valuation becomes harder to justify.
Market & Competitive Risks: The stock's P/E of 32.1x is at a 46% premium to the industry average of 22x, making it vulnerable to multiple compression if growth disappoints. With a beta of 0.87, the stock is less volatile than the market but still sensitive to macro slowdowns. Competitive threats from other waste management firms like Waste Management and Republic Services could pressure pricing. Regulatory changes could also impact costs, though environmental regulations generally benefit Clean Harbors. The stock's 52-week high of $316.98 is only 2% above the current price, suggesting limited upside unless catalysts emerge.
Worst-Case Scenario: In a severe recession, industrial activity could decline sharply, reducing waste volumes and pressuring pricing. Revenue could contract by 10-15%, and margins could compress further due to fixed costs. The stock could fall to its 52-week low of $201.34, representing a 35% decline from the current price of $310.58. This scenario would likely involve multiple quarters of earnings misses and analyst downgrades, with the P/E potentially contracting to the industry average of 22x or lower.
