Is CLH Worth Buying as Growth Accelerates but Valuation Stays Rich?

CLH’s Growth Case Is Getting Stronger

The Zacks Consensus Estimate for 2026 earnings is $8.79 per share, up from $7.28 in 2025. Projected earnings growth for the current fiscal year is 20.7%, giving CLH a stronger earnings profile as demand remains healthy across its environmental-services businesses.

Estimate revisions reinforce that trend. The full-year earnings estimate has risen 11.8% in the past four weeks. Second-quarter earnings also increased 36.4% year over year to $3.22 per share, while adjusted EBITDA advanced 21.6% to $409 million.

Clean Harbors’ Valuation Leaves Less Room for Error

Growth is not inexpensive. CLH trades at 33.7X forward earnings, above the 25.5X industry level and 20.8X for the S&P 500. Its 15.8X EV/EBITDA multiple also exceeds the industry’s 12.5X and the stock’s five-year median of 11.7X.

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                                                                         Image Source: Zacks Investment Research

                                                                          Image Source: Zacks Investment Research

That premium raises the execution bar. Investors comparing environmental-services names may also consider GFL Environmental Inc. GFL, a North American solid-waste services provider operating across Canada and 18 U.S. states. Waste Connections, Inc. WCN provides non-hazardous waste collection, transfer and disposal services, along with recycling and resource-recovery operations.

CLH’s Cash Flow Supports Growth and Buybacks

Clean Harbors generated $245.5 million of operating cash flow in the first six months of 2026, up from $209.6 million a year earlier. Management also raised 2026 adjusted free cash flow guidance to $520-$580 million, providing additional capacity for growth spending and capital allocation.

Share repurchases remain part of that strategy. CLH bought back $52.1 million of common stock in the first half of 2026. The company also had $408.4 million of cash and cash equivalents and $108.4 million of short-term marketable securities at June 30, 2026.

Clean Harbors Still Faces Competitive and FX Risks

Competition remains a constraint on the investment case. Clean Harbors competes with large national providers and smaller regional firms, which can pressure pricing, raise customer-acquisition costs and affect market share.

Foreign-exchange exposure adds another source of variability. Canadian operations contributed to a $17.7 million foreign-currency translation loss in the first six months of 2026, versus a $24.7 million gain a year earlier. CLH also pays no quarterly dividend, leaving shareholder returns dependent on price appreciation.

CLH’s Rating Mix Favors Patience Over Chasing

The growth case has strengthened, but the valuation leaves limited room for disappointment. Rising earnings estimates, higher cash-flow guidance and continued buybacks support the fundamental picture, while the premium multiples make entry price an important consideration.

CLH currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clean Harbors has a Growth Score of B and Momentum Score of B, both of which point to favorable growth and price-trend characteristics, while its Value Score of C is more neutral. Its VGM Score of B reflects a favorable combined reading across value, growth and momentum. For investors weighing whether to buy now or wait, the rating mix supports patience rather than treating stronger operating momentum as a stand-alone buy signal.

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This article originally published on Zacks Investment Research (zacks.com).

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