NEW YORK (TheStreet) -- Shares of Clean Harbor Inc. (CLH) - Get Report are down -2.28% to $59.60 on Wednesday after the company reported revenue for the 2014 first quarter was $846.7 million, compared to $862.2 million for the same period last year.
The company, which provides environmental, energy and industrial services throughout North America, said net income also declined for the most recent quarter to $9.0 million, or 15 cents per diluted share, from $10.5 million, or 17 cents per diluted share for the 2013 first quarter.
TheStreet Ratings team rates CLEAN HARBORS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLEAN HARBORS INC (CLH) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CLH's very impressive revenue growth greatly exceeded the industry average of 4.6%. Since the same quarter one year prior, revenues leaped by 57.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.95, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.45, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $135.73 million or 48.05% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.01%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: CLH Ratings Report