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Clean Harbors (CLH) Benefits From Acquisitions, Debt Ails
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Clean Harbors, Inc. (CLH - Free Report) shares have had an impressive run on the bourse so far this year. The stock has appreciated 34.5% over the past year, outperforming the 3.7% decline of the industry it belongs to.
Image Source: Zacks Investment Research
The company recently reported third-quarter 2021 adjusted earnings per share of $1.19, which outpaced the Zacks Consensus Estimate by 52.6% and increased more than 100% year over year. Total revenues of $926.45 million beat the consensus mark by 9.6% and grew 30.5% year over year.
How is Clean Harbors Doing?
Clean Harbors continues to focus on improving its efficiency and lowering operating costs through advanced technology, process efficiencies and stringent cost management. In 2020, the company managed internalization of maintenance costs, procurement and supply chain improvements, and site consolidations to improve efficiency. Additionally, it eyes strategic investment in businesses, which are likely to increase productivity. By setting up additional service locations near treatment, storage and disposal facilities, the company expects to minimize capital expenditures and increase its market share. This, in turn, is likely to drive additional waste into the company’s existing facilities, thereby increasing capacity utilization and enhancing overall profitability.
The company continues to grow with the help of multiple acquisitions in both new and existing markets. In 2019, Clean Harbors acquired certain assets of a privately-owned business for $10.4 million (to boost its Safety-Kleen segment's core service offerings) and another privately-owned company for $14.9 million in order to expand its environmental services and hazardous materials management services.
Further, it continues to make capital investments to enhance its quality and comply with government and local regulations. A diversified customer base, ranging from Fortune 500 companies to mid-sized and small public and private entities, provides Clean Harbors with stable and recurring revenue sources.
Clean Harbors’ cash and cash equivalent of $646.66 million at the end of third-quarter 2021 was well below its total debt level of $1.55 billion, underscoring that it does not have enough cash to meet this debt burden.
Zacks Rank and Stocks to Consider
Clean Harbors currently carries a Zacks Rank #3 (Hold).
Some other better-ranked stocks in the broader Business Servicessector are Avis Budget (CAR - Free Report) and Cross Country Healthcare (CCRN - Free Report) ), both sporting a Zacks Rank #1, and Charles River Associates (CRAI - Free Report) ), carrying a Zacks Rank #2 (Buy).
Avis Budget has an expected earnings growth rate of 420.6% for the current year. The company has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 744.3% in the past year. The company has a long-term earnings growth of 18.8%.
Cross Country Healthcare has an expected earnings growth rate of 447.8% for the current year. The company has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 201% in the past year. The company has a long-term earnings growth of 21.5%.
Charles River Associates has an expected earnings growth rate of 61.2% for the current year. The company has a trailing four-quarter earnings surprise of 51%, on average.
Charles River’s shares have surged 119.3% in the past year. The company has a long-term earnings growth of 15.5%.
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Clean Harbors (CLH) Benefits From Acquisitions, Debt Ails
Clean Harbors, Inc. (CLH - Free Report) shares have had an impressive run on the bourse so far this year. The stock has appreciated 34.5% over the past year, outperforming the 3.7% decline of the industry it belongs to.
The company recently reported third-quarter 2021 adjusted earnings per share of $1.19, which outpaced the Zacks Consensus Estimate by 52.6% and increased more than 100% year over year. Total revenues of $926.45 million beat the consensus mark by 9.6% and grew 30.5% year over year.
How is Clean Harbors Doing?
Clean Harbors continues to focus on improving its efficiency and lowering operating costs through advanced technology, process efficiencies and stringent cost management. In 2020, the company managed internalization of maintenance costs, procurement and supply chain improvements, and site consolidations to improve efficiency. Additionally, it eyes strategic investment in businesses, which are likely to increase productivity. By setting up additional service locations near treatment, storage and disposal facilities, the company expects to minimize capital expenditures and increase its market share. This, in turn, is likely to drive additional waste into the company’s existing facilities, thereby increasing capacity utilization and enhancing overall profitability.
The company continues to grow with the help of multiple acquisitions in both new and existing markets. In 2019, Clean Harbors acquired certain assets of a privately-owned business for $10.4 million (to boost its Safety-Kleen segment's core service offerings) and another privately-owned company for $14.9 million in order to expand its environmental services and hazardous materials management services.
Further, it continues to make capital investments to enhance its quality and comply with government and local regulations. A diversified customer base, ranging from Fortune 500 companies to mid-sized and small public and private entities, provides Clean Harbors with stable and recurring revenue sources.
Clean Harbors’ cash and cash equivalent of $646.66 million at the end of third-quarter 2021 was well below its total debt level of $1.55 billion, underscoring that it does not have enough cash to meet this debt burden.
Zacks Rank and Stocks to Consider
Clean Harbors currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other better-ranked stocks in the broader Business Servicessector are Avis Budget (CAR - Free Report) and Cross Country Healthcare (CCRN - Free Report) ), both sporting a Zacks Rank #1, and Charles River Associates (CRAI - Free Report) ), carrying a Zacks Rank #2 (Buy).
Avis Budget has an expected earnings growth rate of 420.6% for the current year. The company has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 744.3% in the past year. The company has a long-term earnings growth of 18.8%.
Cross Country Healthcare has an expected earnings growth rate of 447.8% for the current year. The company has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 201% in the past year. The company has a long-term earnings growth of 21.5%.
Charles River Associates has an expected earnings growth rate of 61.2% for the current year. The company has a trailing four-quarter earnings surprise of 51%, on average.
Charles River’s shares have surged 119.3% in the past year. The company has a long-term earnings growth of 15.5%.