Tag Archives: HCCI

Heritage-Crystal Clean (HCCI), mcap=$836m, price $34.57 vs $28.84

Processes hazardous and non-hazardous waste (60%, non-cyclical) and re-refines of used oil (40% cyclical). Far cheaper than its larger peer $CLH. Although the oil business is cyclical and currently over-earning, it has shown a 15-year CAGR of 33%. Due to continued high energy prices, elevated earnings might persist for longer than investors expect. The appeal of the non-cyclical environmental services business more than off-sets the risks of cyclicality in the oil refining business. Potential acquisition target by a larger solid waste company.