Heritage-Crystal Clean, Inc. provides parts cleaning, and hazardous and non-hazardous waste services to small and mid-sized customers in the manufacturing and vehicle maintenance sectors. The company was founded in 2007 and is based in Elgin, Illinois.
HCCI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Heritage-Crystal Clean Inc. To summarize, we found that Heritage-Crystal Clean Inc ranked in the 39th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Heritage-Crystal Clean Inc, consider:
Heritage-Crystal Clean Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 17.11% of tickers in our DCF set.
As a business, Heritage-Crystal Clean Inc experienced a tax rate of about 22% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 86.53% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LAWS, TDG, CSWI, ITW, and PCAR can be thought of as valuation peers to HCCI, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
With us today from the company are the President and Chief Executive Officer, Mr. Brian Recatto; and the Chief Financial Officer, Mr. Mark DeVita. At this time, I would like to turn the call over to Brian Recatto. This morning we will begin with an update on the impact of the pandemic, discuss our second quarter results and share our third quarter outlook.
Heritage-Crystal Clean, Inc. (Nasdaq: HCCI), a leading provider of parts cleaning, used oil re-refining, and hazardous and non-hazardous waste services primarily focused on small and mid-sized customers, today announced results for the second quarter which ended June 13, 2020.