$Clean Harbors (CLH.US)$🎯 On July 12, 2023, the current pri...

New data: 2022 Q3 and annual report, 2023 Q1 quarterly report.

In 2023, revenue increased by 35.8%, operating profit increased by 82.5%, and net income increased by 102.6%. This is a very large increase. It is rare that in Q1 of 2023, revenue continued to increase by 11.8%, operating profit increased by 39%, and net income increased by 60%.

Interestingly, while income growth is rapid, interest expenses are also increasing rapidly. In 2023, interest expenses reached 0.11 billion, accounting for 17% of operating profit, which is a heavy burden.

The balance sheet shows that the debt-to-equity ratio in 2022 decreased from 73.2% to 68.6%. The proportion of revenue to inventory is normal, but the total increased by 0.258 billion, fortunately still lower than the net income of 0.41 billion.

Goodwill and other intangible assets amount to 1.924 billion, which is equivalent to the net assets of 1.98 billion. The quality of assets is not high.

Long-term borrowing amounts to 2.41 billion, and the leverage ratio is very high.

The operating net amount has been lower than the investment net amount for the past 5 years, mainly because over 1 billion was invested in mergers and acquisitions in 2021, which requires time to generate shareholder profits.

Currently, the PE ratio is 22.1, and the TTM PE ratio has dropped to 20.8, indicating that the effect of the mergers and acquisitions is very good. It is still advisable to choose carefully (⭐️).