City Lodge Hotels (JSE:CLH) Achieves 341% ROCE Growth, Indicating Efficiency Gains
- ROCE Improvement: City Lodge Hotels has achieved a remarkable 341% growth in Return on Capital Employed (ROCE) over the past five years, indicating that the company is generating higher returns from the same capital base, which reflects significant operational efficiency improvements.
- Financial Health Enhancement: The reduction of current liabilities to 12% of total assets signifies a decreased reliance on suppliers and short-term creditors, thereby enhancing financial stability and further supporting profitability improvements.
- Industry Comparison: With a ROCE of 17%, City Lodge Hotels remains competitive within the hospitality sector, where the average is around 20%, indicating a solid market position despite not being the highest performer.
- Future Growth Potential: Given the company's efficiency gains and improved profitability, investor sentiment is optimistic about its future performance, suggesting that if these trends continue, City Lodge Hotels could achieve significant growth ahead.
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- Conference Call Schedule: Clean Harbors will host its Q4 and full-year 2025 financial results conference call on February 18, 2026, at 9:00 a.m. ET, highlighting the company's commitment to transparency and investor communication by discussing financial results and business outlook.
- Executive Participation: The call will feature Co-CEOs Michael L. Battles and Eric W. Gerstenberg, CFO Eric J. Dugas, and SVP of Investor Relations Jim Buckley, ensuring that investors receive comprehensive insights into the company's strategy and financial performance.
- Participation Details: Investors can listen to the live webcast on the company's Investor Relations webpage or dial in at 877.709.8155 or 201.689.8881, with a recommendation to join at least 10 minutes early to ensure smooth access.
- Company Overview: Founded in 1980, Clean Harbors is North America's leading provider of environmental and industrial services, serving a diverse customer base that includes a majority of Fortune 500 companies, showcasing its strong market position across various sectors including chemicals, manufacturing, and government agencies.

- ROCE Improvement: City Lodge Hotels has achieved a remarkable 341% growth in Return on Capital Employed (ROCE) over the past five years, indicating that the company is generating higher returns from the same capital base, which reflects significant operational efficiency improvements.
- Financial Health Enhancement: The reduction of current liabilities to 12% of total assets signifies a decreased reliance on suppliers and short-term creditors, thereby enhancing financial stability and further supporting profitability improvements.
- Industry Comparison: With a ROCE of 17%, City Lodge Hotels remains competitive within the hospitality sector, where the average is around 20%, indicating a solid market position despite not being the highest performer.
- Future Growth Potential: Given the company's efficiency gains and improved profitability, investor sentiment is optimistic about its future performance, suggesting that if these trends continue, City Lodge Hotels could achieve significant growth ahead.

Stock Performance: Clean Harbors (CLH) has seen a 13% increase in stock price over the past month and a 4% rise this year, with a significant 108.49% total shareholder return over the last three years.
Valuation Insights: The stock is currently trading at $239.30, just below analyst targets, with a fair value estimate of $250, raising questions about future growth potential and market pricing.
Growth Drivers: The company's investments in facility expansion, logistics optimization, and sustainability initiatives are expected to enhance operating leverage and margin expansion, contributing to recurring revenue stability.
Valuation Risks: Clean Harbors trades at a higher price-to-earnings ratio compared to industry averages, indicating potential valuation risks if growth or margins do not meet expectations.
Contract Award: Clean Harbors (CLH) has secured $110 million in contracts for PFAS water filtration over a three-year period.
Focus on PFAS: The contracts highlight the growing emphasis on addressing PFAS contamination in water sources.
Contract Announcement: Clean Harbors has secured contracts worth $110 million over three years for PFAS water filtration at Joint Base Pearl Harbor-Hickam.
Collaboration with V2X: The company is partnering with logistics supplier V2X to enhance its regenerative carbon filtration and resin units, which have been operational in Hawaii since 2022.
Water Filtration Responsibility: Clean Harbors will filter approximately 4.2 million gallons of water daily, having designed and installed the filtration system in collaboration with V2X and NAVFAC.
Operational Control: The company maintains full operational control over the filtration system, ensuring its effective management and performance.








