Clean Harbors stock snapshot and recent performance
Clean Harbors (CLH) has drawn fresh attention after a strong past 3 months, with the stock recently closing at $297. Over the past year, total return stands at 56.9%.
In the shorter term, the shares show a 2.4% move over the past month, 6.5% over the past week, and 2.4% on a 1-day basis. Year to date, total return also stands at 22.0%.
See our latest analysis for Clean Harbors.
For context, the 22.0% year to date share price return and 56.9% 1 year total shareholder return indicate that momentum has been building rather than fading, as the latest moves extend a much longer upward trend.
If you are looking beyond environmental services and want to see what else is gaining interest, this is a good moment to check out 28 power grid technology and infrastructure stocks
With CLH trading near $297 and an intrinsic value estimate implying a 23.2% discount, the key question is whether the market is still undervaluing its environmental services business or already pricing in future growth potential.
Most Popular Narrative: 1.9% Undervalued
Clean Harbors latest close at $297 sits just under the most widely followed fair value estimate of $302.85, setting up a tight valuation debate.
The analysts have a consensus price target of $302.85 for Clean Harbors based on their expectations of its future earnings growth, profit margins and other risk factors.
We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.
Curious what kind of revenue trajectory, margin lift and earnings multiple are baked into that fair value, and how share buybacks feed into the story? The full narrative lays out the financial blueprint behind this tight gap between model and market price.
Result: Fair Value of $302.85 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you also need to weigh risks like regulatory hurdles around incinerators and landfills, as well as new waste technologies that could gradually reduce demand for legacy services.
Find out about the key risks to this Clean Harbors narrative.
Another angle on valuation
While the narrative and fair value estimate indicate that Clean Harbors is 23.2% undervalued, the current P/E of 40.2x tells a different story. It sits well above the estimated fair ratio of 23.3x and the US Commercial Services average of 22.4x, which raises the risk that expectations are already very full at $297. So which signal do you give more weight to?
To see what the numbers say about this price, it is worth checking the detailed valuation breakdown in the See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Seeing mixed signals on value and risk so far? Use this as a prompt to review the data yourself, move quickly, and weigh the 2 key rewards and 2 important warning signs
Looking for more investment ideas?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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