CLH - Harsco - Leveraging Its Environmental Solutions To Greater Heights
Investment Thesis
Harsco Corporation (HSC) has been divesting out of some of its lower margin, capital intensive businesses and used the proceeds to invest in companies that complement its remaining divisions, specifically environmental solutions. The new business model has increased operating profit margins from 8.7% in 2017 to 10.8% in 2018 and provided a more sustainable long term future. Management has been executing well, with return on invested capital doubling to about 15% and eight positive quarterly earnings surprises over the last two years.
Based on solid financial results recently and management’s forecast