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The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.
If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Clean Harbors (NYSE:CLH). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Clean Harbors with the means to add long-term value to shareholders.
Check out our latest analysis for Clean Harbors
How Fast Is Clean Harbors Growing Its Earnings Per Share?
Clean Harbors has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. Thus, it makes sense to focus on more recent growth rates, instead. Clean Harbors' EPS skyrocketed from US$5.66 to US$7.51, in just one year; a result that's bound to bring a smile to shareholders. That's a commendable gain of 33%.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EBIT margins for Clean Harbors remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 16% to US$5.3b. That's encouraging news for the company!
In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.
Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Clean Harbors.
Are Clean Harbors Insiders Aligned With All Shareholders?
Owing to the size of Clean Harbors, we wouldn't expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$601m. This suggests that leadership will be very mindful of shareholders' interests when making decisions!