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NEW YORK (TheStreet) -- Clean Harbors (CLH - Get Report) has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLEAN HARBORS INC (CLH) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The debt-to-equity ratio is somewhat low, currently at 0.93, 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 1.47, which illustrates the ability to avoid short-term cash problems.
- CLEAN HARBORS INC has improved earnings per share by 23.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CLEAN HARBORS INC reported lower earnings of $1.57 versus $2.38 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $1.57).
- The gross profit margin for CLEAN HARBORS INC is currently lower than what is desirable, coming in at 29.30%. Regardless of CLH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CLH's net profit margin of 3.33% is significantly lower than the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Commercial Services & Supplies industry and the overall market, CLEAN HARBORS INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: CLH Ratings Report