Clean Harbors, Inc. (NYSE:CLH) Valuation and Outlook: Is it a Good Time to Buy?

Clean Harbors, Inc. (NYSE:CLH) shares have seen an 11% price increase over the last few months, inching closer to its yearly highs. Despite this, the stock remains undervalued, with an intrinsic value of $354.21 compared to its current trading price of $248. The company's high beta and expected 57% profit growth over the next two years make it an attractive investment opportunity for value and growth investors.

Clean Harbors, Inc. (NYSE:CLH) has seen a notable 11% price increase over the last few months, bringing its share price closer to its yearly highs. Despite this recent climb, the stock remains undervalued, with an intrinsic value of $354.21 compared to its current trading price of $248 [1]. This discrepancy presents an attractive opportunity for investors seeking both value and growth.

The company's high beta, which measures share price volatility, indicates that its price movements will be exaggerated relative to the market. This characteristic can provide a prime buying opportunity if the market turns bearish, as the company's shares are likely to fall more than the rest of the market [1]. Additionally, Clean Harbors is expected to see a 57% profit growth over the next two years, further bolstering its appeal to growth investors [1].

However, it is essential to consider other factors before making an investment decision. The company's Q2 2025 results, while positive, highlighted the unevenness of its growth story. The Environmental Services segment, the company's backbone, continues to perform well with steady gains and stronger margins. Conversely, Safety-Kleen Sustainability Solutions faces pressure from softer base oil markets, leading to a 19% year-over-year revenue drop [2].

Looking ahead, Clean Harbors' future depends on its ability to execute effectively across three fronts: Environmental Services, Safety-Kleen, and long-term growth pipelines such as PFAS remediation and reshoring. If the company can deliver higher throughput and sustained demand in Environmental Services, it could significantly expand its margins. Similarly, the success of Safety-Kleen will hinge on its ability to offset volatile base oil markets with operational levers and new pricing initiatives [2].

In conclusion, Clean Harbors presents a balanced opportunity for investors seeking a mix of value and growth. The stock's undervaluation, high growth potential, and exposure to long-term growth drivers make it an attractive investment. However, investors should also consider the company's operational risks and management's ability to execute effectively.

References:
[1] https://finance.yahoo.com/news/too-consider-buying-clean-harbors-120019160.html
[2] https://seekingalpha.com/article/4814508-clean-harbors-solid-growth-story-but-shares-look-fully-valued