Professional
Added to YB: 2024-05-24
Pitch date: 2024-04-18
CLH [bullish]
Clean Harbors, Inc.
+25.41%
current return
Author Info
Merion Road Capital is a fund in Miami focused on value-oriented investing through rigorous fundamental analysis of a company's operations. Follow on Twitter/X.
Company Info
Clean Harbors, Inc. provides environmental and industrial services in the United States and Canada. It operates through two segments: Environmental Services and Safety-Kleen Sustainability Solutions.
Market Cap
$11.6B
Pitch Price
$191.39
Price Target
N/A
Dividend
N/A
EV/EBITDA
9.83
P/E
30.15
EV/Sales
2.34
Sector
Commercial Services and Supplies
Category
value
Merion Road Capital Portfolio Holding: Clean Harbors, Inc.
CLH: Largest US hazardous waste mgmt co. Scarce assets (9 incinerators, 8 landfills), 500+ permits, scale benefits. Enviro Services diverse despite cyclical markets; Safety-Kleen Oil 13% EBITDA, commodity driven. 24.5% EBITDA margin, up 1.6% in 2023 post US Ecology acq by RSG. 10.6x 2025 EBITDA (ex-Oil at 10.8x); steep discount to waste peers at 15x. 500bps margin expansion = 20% EBITDA upside, <9x multiple. Compelling value for market position & barriers to entry. Merion Road Capital made it their largest position.
Read full article (3 min)