Clean Harbors Isn't A Clean Enough Prospect To Justify An Upgrade

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(12min)CommentsSummaryClean Harbors remains a 'hold,' as shares are fairly valued relative to peers, despite strong operational performance.Environmental Services drives revenue and margin growth, offsetting persistent declines in the Safety-Kleen Sustainability Solutions segment.Management guides for 2026 EBITDA of $1.20–$1.26 billion and net profit of $410–$461 million, supported by contract wins in PFAS remediation.CLH benefits from regulatory tailwinds but lacks a compelling value case at current multiples, warranting a neutral rating.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Carmen Ruiz alonso/iStock via Getty Images Whenever I rate a company a ‘hold,’ I am making the claim that the stock should perform along the lines of the broader market for the foreseeable future. I would say that my call to downgrade Clean Harbors (This article was written byDaniel Jones36.71K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.