Clean Harbors Inc
Find Ratings ReportsCLEAN HARBORS INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. CLEAN HARBORS INC has strong liquidity. Currently, the Quick Ratio is 1.62 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.38% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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| Income Statement | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Net Sales ($mil) | 752.79 | 697.51 |
| EBITDA ($mil) | 122.49 | 114.05 |
| EBIT ($mil) | 48.54 | 38.1 |
| Net Income ($mil) | 25.88 | 3.97 |
| Balance Sheet | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 446.37 | 352.92 |
| Total Assets ($mil) | 3806.28 | 3692.38 |
| Total Debt ($mil) | 1734.3 | 1631.88 |
| Equity ($mil) | 1100.94 | 1116.34 |
| Profitability | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Gross Profit Margin | 30.95 | 31.18 |
| EBITDA Margin | 16.27 | 16.35 |
| Operating Margin | 6.45 | 5.46 |
| Sales Turnover | 0.75 | 0.8 |
| Return on Assets | -0.48 | 0.64 |
| Return on Equity | -1.67 | 2.14 |
| Debt | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Current Ratio | 1.99 | 2.15 |
| Debt/Capital | 0.61 | 0.59 |
| Interest Expense | 22.9 | 23.17 |
| Interest Coverage | 2.12 | 1.64 |
| Share Data | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Shares outstanding (mil) | 57.15 | 57.5 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.45 | 0.07 |
| Book value / share | 19.26 | 19.42 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 299270.0 | 283495.0 |
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 2.80 indicates a discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 6.13. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, CLEAN HARBORS INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
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Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CLH NM | Peers 33.55 | CLH 12.02 | Peers 19.88 | |||||||||||||||||||||
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Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. CLH's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CLH is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
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| CLH 44.40 | Peers 26.88 | CLH NA | Peers 1.46 | |||||||||||||||||||||
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Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. CLH is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
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Earnings Growth |
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| CLH 2.80 | Peers 6.13 | CLH -178.04 | Peers 128.98 | |||||||||||||||||||||
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Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CLH is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, CLH is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
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| CLH 1.08 | Peers 2.71 | CLH -2.61 | Peers 14.68 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CLH is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. CLH significantly trails its peers on the basis of sales growth |
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