You Can Do Better Than Waste Management. Buy Clean Harbors Instead.
2026-09-30 10:14
•James Halley •The Motley Fool
•••• •• Axe Cap view
Why South Africans Should Look Beyond Waste Management
Clean Harbors beats Waste Management on growth and pricing power, but what does that mean for JSE investors?
Waste management in the US is a mature, slow-growth space dominated by companies like Waste Management (WM), whose recent results show stalled revenue and shrinking profits. Meanwhile, Clean Harbors (CLH), focused on hazardous and industrial waste—particularly PFAS remediation—posted strong double-digit top-line growth and impressive profit gains. Their specialized infrastructure gives them real pricing power, something WM lacks in standard municipal waste. For South African investors, the takeaway isn’t to rush into US environmental plays but to watch the USD/ZAR closely. A stronger dollar could pressure local earnings but also create opportunities in export-oriented sectors like AngloGold Ashanti or MTN that indirectly benefit from greener, global industrial trends. For direct equity exposure to waste management themes, the JSE offers little specialization, so keep your eye on FX moves before jumping into US players. This trade looks clean but is far from risk-free—tightened regulations could shift quickly or costs may catch up. this is just our opinion and not financial advice
Watch USD/ZAR for entry points and consider selective buys in global-facing miners and telcos rather than chasing US waste stocks directly. Avoid WM, as dividend income doesn’t justify stagnant growth, and wait on CLH until currency risks ease.
- USD/ZAR
- AngloGold Ashanti
- MTN
- US regulatory changes easing PFAS focus
- Rand weakening more than expected
6/10
The article argues that Clean Harbors (CLH) is a superior investment compared to Waste Management (WM). Clean Harbors specializes in hazardous waste management and benefits from tightening environmental regulations, particularly around PFAS remediation. The company demonstrated stronger Q2 performance with 12% revenue growth and 35.8% EPS growth, compared to WM's 4% revenue growth and 3% EPS decline. Clean Harbors' specialized infrastructure provides pricing power that municipal waste operators cannot replicate, though it lacks a dividend that WM offers.
Our take is based on reporting first published by The Motley Fool.