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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Clean Harbors, Inc. (XNYS:CLH) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
CLH
Name:
CLEAN HARBORS, INC. (XNYS:CLH)
Sector:
- 109258.00K
Industry:
Waste Management
CEO:
Mr. Alan McKim
Total Employees:
18,300
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -62.05% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF CLEAN HARBORS, INC.(CLH) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND WASTE MANAGEMENT INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
116.78
One Month Price Target:
$117.72
Six Month Price Target :
$122.39
Likely Price in One Year's Time:
Ticker:
$128.01
Likely Trading Range Today Under (Normal Volatility)
$116.27
Price Upper limit ($) :
$117.52
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$109.32
This week:
$100.09
This month :
$83.41
Other Primary facts
Market Cap:
6.29B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
54.10M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
23.98%
-33.52%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$151.39
$135.39
$82.17
$98.17
Medium risk (<10%) entry points
Buy Call
Sell Call
$130.19
Buy Put:
Sell Put:
$126.77
$103.33
$106.79
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
CLH
Sharpe Ratio:
2.90%
Comparison:
CLH, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 20.31% higher than the industry
& ratio is 27.43% higher than the market/S&P 500 average
Average Returns/Yield of
CLH
Daily returns:
0.10%
Weekly returns:
0.50%
Monthly returns:
2.01%
Yearly returns:
15.29%
Comparison of returns:
Average annual returns/yield (last 3 years) is 57.98% above industry average
Classification:
CLH, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.88
Statistical test of Returns:
CLH has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.16%
Weekly Volatility:
7.07%
Monthly Volatility:
14.13%
Yearly Volatility:
48.96%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.58%
Volatility in last five trading days has been -81.60% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.39%
Weekly VaR:
-14.29%
Monthly VaR:
-28.58%
How Much Can the price of
CLH
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-24%
Worst case (decline):
>85%
This translates to price declining to:
$88.62
This translates to price declining to:
$17.52
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
CLH is a 101.71% riskier investment compared to the market/S&P 500 & is 72.81% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 18.33% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
CLH
Beta in relation to market/S&P 500--1.43
Expected beta in 1 year's time:
0.955
Expected beta in 3 year's time:
1.351
Unlevered (debt free) Beta:
0.638
Beta in relation to Nasdaq (XNAS):
0.918
Beta in relation to all global stocks::
1.041
Beta Comparison & Analysis
Beta of competitors/peers::
1.084
Beta is 31.96% higher than peers
Average Industry Beta:
1.031
Beta is 38.76% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
13.92%
Sustainable growth rate is 9.34% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.112
Alpha is 120.71% above industry average alpha yield
Alpha is 713% higher than market/& is unsustainably high
Analysis of Cost of Capital of
CLH
Equity cost of capital:
0.130
Equity cost of capital is 26.81% above industry mean WACC
Unlevered (without debt) cost of capital:
5.77%
Before-tax cost of debt:
3.15%
After-tax cost of debt:
2.49%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.49%
WACC is 17.33% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$77.01
Revenue growth rate per share of (3Y):
3.97
Annual revenue growth rate is 85.87% above the industry average
EPS:
$4.15
Expected Annual growth rate of EPS (3Y):
28.46%
Expected future EPS growth rate is 557.38% higher than the Waste Management industry
Free cash flow (FCF) per share:
$2.33
-
-
Debt per share
$48.56
EBITDA per share
$12.86
Valuation Analysis Today of
CLH
P/E Ratio:
20.71
P/E Ratio of Competitors/Peers:
19.2
P/E ratio is 7.86% higher than main peers & is -16.99% lower than the industry
Stock price/value with industry average P/E ratio: $103.54
CLH is 12.79% overvalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
1.52
Price to sales ratio is -37.17% below the industry mean
P/B (Price to book value ratio):
3.97
Price to free cash flow: 50.18
Price to free cash flow ratio is -44.33% lower than the industry
Net income growth rate (3Y):
218.94%
Net income growth rate is 253.18% higher than the average industry net income growth rate
Dividend Analysis
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-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
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In-depth Debt & Leverage Analysis
Debt to equity ratio:
164.88%
Net debt to equity ratio:
147.63%
Debt to assets ratio:
45.88%
Net debt to assets ratio:
41.08%
Debt-to-asset ratio is -25.48% below industry average
Ability to repay debt:
Interest coverage ratio:
8.21
Interest coverage ratio is -22.15% less than industry average
Looking forward:
Debt growth rate:
58.07%
Annual debt growth is 447% higher than industry average debt growth rate
Debt repayment rate in last quarter: 0.30%
Analysis of Key Statistics
Correlation of price movement with the market:
0.63
Statistical significance of correlation:
CLH has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.559
Stock price is 12.70% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.559
Correlation of price movement with Nasdaq (^IXIC):
0.025
Covariance of price movement with the market:
0.046
Kurtosis
26.518
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-1.345
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
CLH
Gross Profit Margin Ratio:
123%
Operating Profit Margin Ratio:
9.22%
Operating profit margin is 59.01% higher than the industry
Net Profit Margin Ratio:
123%
Effective Tax Rate:
24.59%
Effective tax rate is 0.60% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
14.24%
Return on equity (ROE) is 22.74% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
3.96%
Return on assets (ROA) is -2.80% lower than the industry
Financial Leverage:
1.8x
Current Ratio:
1.98
Current ratio is 44.52% above industry average
Cash Conversion Cycle (days):
34.3
Cash conversion cycle is -30.98% below industry average
The remaining useful life of property plant & equipment is: 2.6 years
Stock based compensation to net income ratio:
2.52%
In-depth Efficiency Analysis
Revenue generated per employee:
227.7K
Each employee generates -26% less revenue than industry average revenue per employee
EBITDA generated per employee:
38.0K
Each employee generates -37% less EBITDA than industry average revenue per employee
Profit generated per employee:
12.4K
Each employee generates -42% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 6.0K
Each employee generates -203% less free cash flow than industry average revenue per employee
Assets/Capital per employee
214.2K
Each employee generates -203% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
CLH
SIMPSON MANUFACTURING CO., INC. (XNYS:SSD)
GATES INDUSTRIAL CORPORATION PLC (XNYS:GTES)
MSC INDUSTRIAL DIRECT CO., INC. (XNYS:MSM)
ARMSTRONG WORLD INDUSTRIES, INC. (XNYS:AWI)
nVent Electric plc (XNYS:NVT)
Southeast Airport Group (XNYS:ASR)
FTI CONSULTING, INC. (XNYS:FCN)
TRINET GROUP, INC. (XNYS:TNET)
Stantec Inc. (XNYS:STN)
Current Analyst Ratings
Strong buy�8%
Buy�8%
Hold�29%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
4.17B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
2.89B
1.27B
-
-
567.49M
-
322.22M
889.71M
1.73M
84.77M
310.27M
695.83M
384.13M
226.83M
300.79M
73.96M
226.83M
Statement of Cash Flow
Date:
Period:
84.30M
Differed Income Tax :
2.23M
Stock Based Compensation :
5.71M
Change in Working Capital :
- 180508.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
4.33M
Net Cash Provided by Operating Activities:
- 38629.00K
Investments in PP&E:
- 70308.00K
Net Acquisitions:
5.00M
Purchases of Investments:
- 5002.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
339.58M
75.36M
414.95M
1.02B
264.73M
103.35M
1.81B
2.04B
1.22B
633.45M
-
-
25.81M
3.92B
-
5.73B
394.15M
64.64M
42.76M
90.12M
365.23M
914.14M
2.63B
279.21M
3.22B
-
4.13B
544.00K
1.22B
- 162163.0K
-
March 31, 2022 at 6:00:00 AM
3.78B
1.59B
5.73B
-
2.69B
2.4B
10.45M
999.00K
- 58861.00K
- 7969.00K
-
- 3694.00K
-
- 4417.00K
- 16080.00K
579.00K
- 112991.00K
339.58M
452.58M
- 38629.00K
- 70629.00K
- 109258.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
CLH
2023
2024
2025
2026
2027
$133.20
$146.01
$160.05
$175.44
$192.32