DCF Tool

CLH

Clean Harbors, Inc. – Support Activities for Oil and Gas Operations
Clean Harbors is North America’s leading provider of environmental and industrial services. The Company serves a diverse customer base, including a majority of Fortune 500 companies. Its customer base spans a number of industries, including chemical, energy and manufacturing, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is North America’s largest re-refiner and recycler of used oil and a leading provider of parts washers and environmental services to commercial, industrial and automotive customers. Founded in 1980 and based in Massachusetts, Clean Harbors operates in the United States, Canada, Mexico, Puerto Rico and India.
Analysis Results
Intrinsic Value $149.83
Latest Price $118.75
Relative Value 21% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 7.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 326 306
2023 351 309
2024 379 312
2025 408 315
2026 440 319
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9630 million. This corresponds to a present value of 6540 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1560 million. Adding in the terminal value gives a total present value of 8100 million.

There are presently 54.1 million outstanding shares, so the intrinsic value per share is 149.83.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,741,171,000
Current Cash 534,299,000
Current Liabilities 925,314,000
Current Debt 17,535,000
Non-Cash Working Capital (NCWC) 299,093,000
Change in NCWC -27,061,000
EBIT 347,887,000
Tax Provision 66,468,000
Depreciation and Amortization 298,135,000
Capital Expenditure -245,704,000
Unlevered Free Cash Flow 287,524,455
Current Assets 1,525,722,000
Current Cash 570,958,000
Current Liabilities 636,145,000
Current Debt 7,535,000
Non-Cash Working Capital (NCWC) 326,154,000
Change in NCWC 52,223,000
EBIT 251,336,000
Tax Provision 39,713,000
Depreciation and Amortization 292,915,000
Capital Expenditure -196,256,000
Unlevered Free Cash Flow 343,034,920
Current Assets 1,400,908,000
Current Cash 414,412,000
Current Liabilities 720,100,000
Current Debt 7,535,000
Non-Cash Working Capital (NCWC) 273,931,000
Change in NCWC -54,121,000
EBIT 229,456,000
Tax Provision 50,499,000
Depreciation and Amortization 300,725,000
Capital Expenditure -220,228,000
Unlevered Free Cash Flow 177,665,670
Current Assets 1,202,158,000
Current Cash 279,363,000
Current Liabilities 602,278,000
Current Debt 7,535,000
Non-Cash Working Capital (NCWC) 328,052,000
Change in NCWC 31,391,000
EBIT 182,574,000
Tax Provision 28,846,000
Depreciation and Amortization 298,625,000
Capital Expenditure -198,032,000
Unlevered Free Cash Flow 258,816,910
Current Assets 1,154,056,000
Current Cash 357,578,000
Current Liabilities 503,817,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) 296,661,000
Change in NCWC 15,455,000
EBIT 127,775,000
Tax Provision -42,050,000
Depreciation and Amortization 288,422,000
Capital Expenditure -168,624,000
Unlevered Free Cash Flow 263,028,000
Current Assets 1,092,871,000
Current Cash 306,997,000
Current Liabilities 504,668,000
Current Debt 0
Non-Cash Working Capital (NCWC) 281,206,000
Change in NCWC 61,838,000
EBIT 103,175,000
Tax Provision 48,589,000
Depreciation and Amortization 287,002,000
Capital Expenditure -222,215,000
Unlevered Free Cash Flow 181,211,000
Current Assets 921,196,000
Current Cash 184,708,000
Current Liabilities 517,120,000
Current Debt 0
Non-Cash Working Capital (NCWC) 219,368,000
Change in NCWC -88,251,000
EBIT 219,571,000
Tax Provision 65,544,000
Depreciation and Amortization 274,194,000
Capital Expenditure -262,492,000
Unlevered Free Cash Flow 11,767,219
Current Assets 1,126,433,000
Current Cash 246,879,000
Current Liabilities 572,471,000
Current Debt 536,000
Non-Cash Working Capital (NCWC) 307,619,000
Change in NCWC 97,164,000
EBIT 235,224,000
Tax Provision 66,850,000
Depreciation and Amortization 276,083,000
Capital Expenditure -264,132,000
Unlevered Free Cash Flow 277,489,000
Current Assets 1,171,179,000
Current Cash 322,508,000
Current Liabilities 639,545,000
Current Debt 1,329,000
Non-Cash Working Capital (NCWC) 210,455,000
Change in NCWC -70,764,000
EBIT 220,556,000
Tax Provision 48,319,000
Depreciation and Amortization 264,449,000
Capital Expenditure -286,947,000
Unlevered Free Cash Flow 53,227,590
Current Assets 1,086,793,000
Current Cash 241,614,000
Current Liabilities 569,052,000
Current Debt 5,092,000
Non-Cash Working Capital (NCWC) 281,219,000
Change in NCWC 23,617,000
EBIT 202,204,000
Tax Provision -1,944,000
Depreciation and Amortization 161,646,000
Capital Expenditure -201,443,000
Unlevered Free Cash Flow 186,024,000

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