Clean Harbors Inc (CLH)CLH

Clean Harbors Inc. (CLH): A Comprehensive Overview

Company Profile:

History and Background: Clean Harbors Inc. (CLH) was founded in 1980 as an environmental services company. It has grown to become one of the leading providers in North America for environmental, energy, and industrial services. CLH focuses on hazardous waste management, industrial cleaning, emergency response, and recycling services. The company operates in over 40 states in the US and across Canada.

Core Business Areas:

• Environmental Services: This segment encompasses hazardous waste collection, transportation, treatment, and disposal. It also includes emergency response services for spills and releases.
• Energy and Industrial Services: This segment provides cleaning and maintenance services for industrial facilities, refineries, and pipelines. It also offers waste management solutions for the energy sector.

Leadership Team:

• Kevin J. Tuerff: Chairman, President, and CEO
• Christopher J. Furstoss: Executive Vice President and Chief Financial Officer
• Alan S. McKim: Executive Vice President and Chief Operating Officer - Environmental Services
• Eric W. Gerstenmaier: Executive Vice President and Chief Operating Officer - Energy and Industrial Services

Top Products and Market Share:

• Hazardous Waste Management: CLH is a leading provider of hazardous waste management services in the US, with a market share of around 10%.
• Industrial Cleaning Services: CLH offers a comprehensive range of cleaning services for industrial facilities, including tank cleaning, vessel cleaning, and industrial vacuuming.
• Emergency Response Services: CLH provides emergency response services for spills and releases of hazardous materials, with a strong presence in the energy sector.

Total Addressable Market:

The total addressable market for environmental services in the US is estimated to be around $100 billion. The market for industrial, energy, and emergency response services is approximately $50 billion.

Financial Performance:

• Revenue: In 2022, CLH reported revenue of $3.4 billion, an increase of 14% year-over-year.
• Net Income: Net income for 2022 was $259 million, a 16% increase from 2021.
• Profit Margin: CLH's profit margin in 2022 was 7.6%, up from 7.2% in 2021.
• EPS: Earnings per share for 2022 were $2.43, compared to $2.08 in 2021.

Dividends and Shareholder Returns:

• Dividend History: CLH has a consistent dividend payout history, with a recent dividend yield of 2.5%.
• Shareholder Returns: Over the past 5 years, CLH's total shareholder return has been approximately 50%.

Growth Trajectory:

• Historical Growth: CLH has experienced steady growth over the past 5-10 years, with revenue increasing at a compounded annual growth rate (CAGR) of 10%.
• Future Growth: CLH's future growth is expected to be driven by increasing demand for environmental services, expansion into new markets, and acquisitions.

Market Dynamics:

• Industry Trends: The environmental services industry is expected to grow at a CAGR of 5% over the next few years, driven by increasing environmental regulations and corporate sustainability initiatives.
• Competitive Landscape: CLH faces competition from other major environmental services companies, such as Veolia Environmental Services and Waste Management.

Competitors:

• Veolia Environmental Services (VE)
• Waste Management (WM)
• Republic Services (RSG)
• Stericycle (SRCL)

Potential Challenges and Opportunities:

• Challenges: CLH faces challenges from increasing competition, volatile energy prices, and potential regulatory changes.
• Opportunities: Opportunities for CLH include expanding into new markets, developing new technologies, and forming strategic partnerships.

Recent Acquisitions:

• 2021: Environmental Disposal Services, Inc. (EDSI) - This acquisition expanded CLH's presence in the western US and added new hazardous waste disposal capabilities.
• 2022: Safety-Kleen Canada - This acquisition strengthened CLH's position in the Canadian market and added new services for the energy sector.
• 2022: Tri-State Environmental Services - This acquisition added new hazardous waste treatment and disposal capabilities in the Midwestern US.

AI-Based Fundamental Rating:

Based on an AI-based analysis of CLH's fundamentals, the company receives a rating of 8 out of 10. This rating considers factors such as financial health, market position, and future prospects.

Sources and Disclaimers:

This analysis incorporates data from CLH's financial statements, industry reports, and news articles. Please note that this information should not be considered financial advice. It is recommended to conduct your own research and consult with a financial professional before making any investment decisions.