Clean Harbors, Inc. (CLH): A Bull Case Theory

We came crossed a bullish thesis connected Clean Harbors, Inc., on Beeli Capital’s Substack by Andrew Beeli. In this article, we volition summarize the bulls’ thesis connected CLH. Clean Harbors, Inc.'s stock terms was $227.56 arsenic of November 28th. CLH’s trailing and guardant P/E were 31.61 and 28.82 respectively according to Yahoo Finance.

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Clean Harbors (CLH) is the starring supplier of hazardous and environmentally delicate discarded disposal successful North America, operating the continent’s largest web of incinerators alongside extended exigency response, concern services, and logistics capabilities. Its vertically integrated model—supported by 5,000 drivers and 20,000+ vehicles—allows CLH to grip analyzable discarded streams from semiconductor fabs, hospitals, authorities munitions programs, and high-profile incidents specified arsenic the East Palestine derailment.

CLH besides dominates used-oil recycling done its Safety-Kleen Sustainability Solutions (SKSS) segment, which collects, re-refines, and resells oil, though this concern is much exposed to planetary lipid prices and carries little margins than the halfway biology services segment. The company’s moat is reinforced by a hard-to-replicate nationalist web of incinerators, landfills, and TSDF facilities—assets that look important permitting barriers—and by heavy regulatory expertise, including enactment successful PFAS destruction, an emerging multibillion-dollar remediation marketplace contributing $100–125 cardinal successful gross and increasing 20% annually.

CLH competes with large players similar Veolia, Waste Management, and Republic Services, but remains the astir broad one-stop store for concern customers. While integrated maturation historically trends astatine debased to mid-single digits, elevated PFAS request and reshoring could supply incremental tailwinds. However, valuation remains a sticking point: with run-rate escaped currency travel adjacent $400 cardinal against a ~$13.5 cardinal endeavor value, returns look humble without assuming continued acquisition-driven expansion, higher lipid prices, oregon stronger measurement growth.

Risks see slower integrated growth, biology liabilities, and accrued competitory strength if Veolia’s acquisition of NVRI closes. Given these dynamics, the banal appears fundamentally beardown but priced for optimism, making it much prudent to hold for much charismatic valuations earlier considering a position.

Previously we covered a bullish thesis on Waste Management, Inc. (WM) by Francesco Ferrari successful April 2025, which highlighted the company’s dependable compounding, beardown margins, and low-volatility returns. The company’s banal terms has depreciated approximately by 5.87% since our coverage. This is due to the fact that near-term expectations didn’t fully play out. The thesis inactive stands arsenic WM’s fundamentals remain durable. Andrew Beeli shares a akin presumption but emphasizes CLH’s concern and regulatory-driven maturation profile.