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

We came across a bullish thesis on Clean Harbors, Inc., on Beeli Capital’s Substack by Andrew Beeli. In this article, we will summarize the bulls’ thesis on CLH. Clean Harbors, Inc.'s share price was $227.56 as of November 28th. CLH’s trailing and forward P/E were 31.61 and 28.82 respectively according to Yahoo Finance.

Clean Harbors (CLH) is the leading provider of hazardous and environmentally sensitive waste disposal in North America, operating the continent’s largest network of incinerators alongside extensive emergency response, industrial services, and logistics capabilities. Its vertically integrated model—supported by 5,000 drivers and 20,000+ vehicles—allows CLH to handle complex waste streams from semiconductor fabs, hospitals, government munitions programs, and high-profile incidents such as the East Palestine derailment.

CLH also dominates used-oil recycling through its Safety-Kleen Sustainability Solutions (SKSS) segment, which collects, re-refines, and resells oil, though this business is more exposed to global oil prices and carries lower margins than the core environmental services segment. The company’s moat is reinforced by a hard-to-replicate national network of incinerators, landfills, and TSDF facilities—assets that face significant permitting barriers—and by deep regulatory expertise, including leadership in PFAS destruction, an emerging multibillion-dollar remediation market contributing $100–125 million in revenue and growing 20% annually.

CLH competes with major players like Veolia, Waste Management, and Republic Services, but remains the most comprehensive one-stop shop for industrial customers. While organic growth historically trends at low to mid-single digits, elevated PFAS demand and reshoring could provide incremental tailwinds. However, valuation remains a sticking point: with run-rate free cash flow near $400 million against a ~$13.5 billion enterprise value, returns look modest without assuming continued acquisition-driven expansion, higher oil prices, or stronger volume growth.

Risks include slower organic growth, environmental liabilities, and increased competitive intensity if Veolia’s acquisition of NVRI closes. Given these dynamics, the stock appears fundamentally strong but priced for optimism, making it more prudent to wait for more attractive valuations before considering a position.

Previously we covered a bullish thesis on Waste Management, Inc. (WM) by Francesco Ferrari in April 2025, which highlighted the company’s steady compounding, strong margins, and low-volatility returns. The company’s stock price has depreciated approximately by 5.87% since our coverage. This is because near-term expectations didn’t fully play out. The thesis still stands as WM’s fundamentals remain durable. Andrew Beeli shares a similar view but emphasizes CLH’s industrial and regulatory-driven growth profile.

Clean Harbors, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held CLH at the end of the second quarter which was 52 in the previous quarter. While we acknowledge the potential of CLH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.