Heritage-Crystal Clean: Beaten Down, Is It Worth A Buy?

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About: Heritage-Crystal Clean, Inc (HCCI), Includes: CLH
by: Michael Boyd
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Michael Boyd
Long/short equity, contrarian, medium-term horizon, mid-cap
Summary

Domestic-focused small caps are in favor; Heritage-Crystal Clean has been left behind.

At fault are two quarters of muddy results and weak reported earnings. Management maintains that these issues are transitory.

However, buying today puts the company straight into the face of a Q2 2017 comp, a quarter in which Heritage-Crystal Clean reported record EBITDA and margin.

While the market is up this year, results have certainly been mixed among constituents. In particular, domestically-focused small caps have tended to outperform this year. Investors do not want anything that can be touched by