Yahoo Finance Has Clean Harbors, Inc. (NYSE:CLH) Improved Earnings Growth In Recent Times?
When Clean Harbors, Inc. (NYSE:CLH) released its most recent earnings update (31 December 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Clean Harbors has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see CLH has performed.
See our latest analysis for Clean Harbors
Were CLH's earnings stronger than its past performances and the industry?
CLH's trailing twelve-month earnings (from 31 December 2019) of US$98m has jumped 49% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 45%, indicating the rate at which CLH is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is only because of an industry uplift, or if Clean Harbors has seen some company-specific growth.
In terms of returns from investment, Clean Harbors has fallen short of achieving a 20% return on equity (ROE), recording 7.7% instead. Furthermore, its return on assets (ROA) of 4.3% is below the US Commercial Services industry of 6.0%, indicating Clean Harbors's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Clean Harbors’s debt level, has increased over the past 3 years from 3.3% to 6.6%.
What does this mean?
Clean Harbors's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Clean Harbors has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Clean Harbors to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CLH’s future growth? Take a look at our free research report of analyst consensus for CLH’s outlook.
Financial Health: Are CLH’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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