ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Clean Harbors's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.95%.
As of today (2026-06-25), Clean Harbors's WACC % is 9.34%. Clean Harbors's ROIC % is 8.36% (calculated using TTM income statement data).
Clean Harbors earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Clean Harbors (NYSE:CLH) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Clean Harbors's WACC % is 9.34%. Clean Harbors's ROIC % is 8.36% (calculated using TTM income statement data).
Clean Harbors earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Clean Harbors ROIC % Related Terms
Clean Harbors ROIC % Historical Data
* Premium members only.
The historical data trend for Clean Harbors's ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Waste Management subindustry, Clean Harbors's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Clean Harbors ROIC % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Clean Harbors's ROIC % distribution charts can be found below:
* The bar in red indicates where Clean Harbors's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Clean Harbors (CLH) has a ROIC % of 5.95% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Clean Harbors and its competitors.
Is Clean Harbors' ROIC % too high?
Clean Harbors' current ROIC % is 5.95%. The Waste Management industry median ROIC % is 3.53. Clean Harbors' value of 5.95% is 68.6% above this industry median. Overall, Clean Harbors has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Clean Harbors' ROIC % compare to GFL and CWST?
Clean Harbors' ROIC % of 5.95% can be compared against companies in the Waste Management industry. The industry median ROIC % is 3.53. Clean Harbors' value of 5.95% is 68.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Waste Management company?
The median ROIC % among Waste Management companies is 3.53, based on 246 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Clean Harbors's current ROIC % of 5.95% is 68.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Clean Harbors and its competitors. For the Waste Management industry, the median ROIC % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clean Harbors's current ROIC % is 5.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clean Harbors stock overvalued right now?
Based on GuruFocus' analysis, Clean Harbors (CLH) is currently considered Modestly Overvalued. The stock's GF Value™ is $243.43, compared to a current price of $300.28 — trading 23.4% above its estimated fair value. The current ROIC % is 5.95% and 68.6% above the Waste Management industry median of 3.53. Clean Harbors' overall GF Score™ is 87/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Clean Harbors (CLH), the current ROIC % is 5.95% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Clean Harbors (CLH) Overvalued in 2026?
Based on GuruFocus' analysis, Clean Harbors stock appears to be overvalued.
The current stock price of $300.28 is trading 23.4% above its estimated GF Value™ of $243.43.
GuruFocus considers Clean Harbors to be Modestly Overvalued.
Key valuation signals for CLH:
ROIC %: 5.95%
GF Value™: $243.43 vs. price of $300.28 (23.4% above fair value)
Industry Position: 68.6% above the Waste Management median
No single metric tells the full story. See the CLH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clean Harbors Inc is an environmental and industrial services provider that provides parts cleaning and related environmental services to commercial, industrial, and automotive customers. Its business segments are Environmental Services and Safety-Kleen Sustainability Solutions. Environmental Services includes waste collection, transportation, treatment, recycling, and disposal, along with industrial maintenance services. Safety-Kleen Sustainability Solutions provides used oil collection and manufactures base oil, vacuum gas oil, and lubricants. The company generates the majority of its revenues from the Environmental Services segment and operates in the United States, with maximum revenue, and Canada.
87GF Score
Get the complete analysis for CLH
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CLH has been successfully added to your 
