In this article, we discuss the 12 biggest commercial janitorial companies in USA.
According to Statista, the janitorial services sector’s market size will increase by 6.6 percent in 2022. The annualized percentage of this market’s growth was 6.7% between 2017 and 2022. Additionally, between 2020 and 2021, the number of janitors and cleaners employed in the United States rose by nearly 50,000. By 2024, it is predicted that the U.S. janitorial services industry will generate around $50.1 billion in sales. The market size, measured by revenue, of the janitorial services industry is $97.6 billion in 2022. Businesses frequently grow when corporate profits increase, raising demand for janitorial services. However, dwindling corporate profit decreases demand for janitorial services as companies close facilities and cut back on the frequency of contracted cleaning to cut expenses. The industry may have an opportunity in 2022 as corporate profits are anticipated to rise, according to ibisworld. According to Allied Market Research, the cleaning services market is to reach $111.49 billion globally by 2030 at a 6.5% CAGR, as reported by Bloomberg.
The global cleaning services industry is expanding due to service providers expanding their online presence and rising commercial consumer demand. However, heightened rivalry and the introduction of new companies limit market expansion. On the other hand, the demand for construction and post-construction cleaning services will open up new prospects. The Covid-19 pandemic has had a favorable effect on the global cleaning services business. Deep cleaning and disinfection have become more popular among residential and commercial users to reduce the risk of cross-contamination. To reduce the risk of infection, the governments of various countries established a variety of standard operating procedures and guidelines for businesses. As a result, cleaning services were more in demand at malls and large businesses.
Photo by Jon Tyson on Unsplash
Methodology
For our list of the 12 biggest commercial janitorial companies in the USA, we took the top 12 largest janitorial companies in the US by market capitalization. These companies either directly provide janitorial services or make technologies and parts used in janitorial services.
Biggest Commercial Janitorial Companies In USA
12. Avalon Holdings Corporation (NYSE:AWX)
Market Capitalization as of November 18, 2022: $0.01 billion
Avalon Holdings Corporation (NYSE:AWX) was founded in 1998 and is based in Warren, Ohio. Avalon Holdings Corporation (NYSE:AWX) provides waste management services to industrial, commercial, municipal, and governmental customers in the United States. It operates in Waste Management Services, and Golf and Related Operations segments. The Waste Management Services segment offers hazardous and nonhazardous waste disposal brokerage and management services; and captive landfill management services and engages in saltwater injection well operations.
11. ABM Industries Incorporated (NYSE:ABM)
Market Capitalization as of November 18, 2022: $2.98 billion
ABM Industries Incorporated (NYSE:ABM) was incorporated in 1985 and is based in New York, New York. It provides janitorial, facilities engineering, parking, custodial, landscaping, ground, mechanical, and electrical services; and vehicle maintenance and other services to rental car providers. On September 12, Baird analyst Andrew Wittmann lowered his price target on ABM Industries Incorporated (NYSE:ABM) to $52 from $53 and kept an Outperform rating on the shares. The analyst said the company is again cautioning it’s not out-of-the-woods yet on tight labor supply. He said initial 2023 guidance could contain some downside risk, the source for his incremental caution now, but longer term, he still likes its defensive and recurring revenue model.
ABM Industries Incorporated (NYSE:ABM) has performed well lately, despite being affected by the COVID-19 pandemic, like most companies. Although lagging, the recovery has been positive since then, and this year’s results are especially optimistic.
10. Casella Waste Systems, Inc. (NASDAQ:CWST)
Market Capitalization as of November 18, 2022: $4.18 billion
Casella Waste Systems, Inc. (NASDAQ:CWST) was founded in 1975 and is based in Rutland, Vermont. Casella Waste Systems, Inc. (NASDAQ:CWST), together with its subsidiaries, operates as a vertically integrated solid waste services company in the northeastern United States. It offers resource management services primarily in solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers. The company provides non-hazardous solid waste services, including collections, transfer stations, and disposal facilities. It also markets recyclable metals, aluminum, plastics, paper, and corrugated cardboard that are processed at its facilities, as well as recyclables purchased from third parties. As of January 31, 2022, it owned 50 solid waste collection operations, 65 transfer stations, 23 recycling facilities, 3 landfill gas-to-energy facilities, and 1 landfill permitted to accept construction and demolition materials.
On October 24, Jefferies analyst Stephanie Moore initiated coverage of Casella Waste Systems, Inc. (NASDAQ:CWST) with a Buy rating with a price target of $95, down from $103. The company offers superior pricing power given its Northeast concentration, as well as the ability to see outsized margin gains from operating leverage and efficiency investments, the analyst tells investors in a research note. Moore adds that Casella Waste Systems, Inc. (NASDAQ:CWST) is also the only public waste company its size not to be acquired, which provides “downside support to the valuation on a takeout potential”.
09. Stericycle, Inc. (NASDAQ:SRCL)
Market Capitalization as of November 18, 2022: $4.73 billion
Stericycle, Inc. (NASDAQ:SRCL) was incorporated in 1989 and is located in Bannockburn, Illinois. The company offers regulated waste and compliance services, including sharps disposable and management solutions; pharmaceutical waste services; hazardous waste disposal; maritime waste services, such as seaport and airport waste; and compliance programs under the Steri-Safe, Clinical Services, First Practice Management, SeguriMed, and EnviroAssure brand names.
Stericycle Inc. (NASDAQ:SRCL) has a global presence, with 14,500 employees in more than 640 locations across 21 countries. More than 25% of the company’s revenue is generated via its international operations, with the most prominent countries being the United States, Canada, Ireland, Spain, and Brazil. Stericycle Inc. (NASDAQ:SRCL) has also associated itself with many community causes, including Feed My Starving Children, American Diabetes Association, National Safety Council, and even set up SteriCares Hardship Fund to provide monetary relief to impoverished families.
08. Clean Harbors, Inc. (NYSE:CLH)
Market Capitalization as of November 18, 2022: $6.29 billion
Clean Harbors, Inc. (NYSE:CLH) was incorporated in 1980 and is located in Norwell, Massachusetts. Clean Harbors, Inc. (NYSE:CLH) provides environmental and industrial services in North America. The company operates through two segments, Environmental Services, and Safety-Kleen Sustainability Solutions. The Environmental Services segment collects, transports, treats, and disposes of hazardous and non-hazardous waste, such as resource recovery, physical treatment, fuel blending, incineration, landfill disposal, wastewater treatment, lab chemicals disposal, and explosives management services.
Clean Harbors, Inc. (NYSE:CLH) Safety-Kleen Sustainability Solutions segment offers specially designed parts washers; automotive and industrial cleaning products, such as antifreeze, windshield washer fluid, degreasers, glass, and floor cleaners, hand cleaners, absorbents, mats, and spill kits.
07. Aramark (NYSE:ARMK)
Market Capitalization as of November 18, 2022: $10.45 billion
Aramark (NYSE:ARMK)was founded in 1959 and is based in Philadelphia, Pennsylvania. It provides design, sourcing and manufacturing, delivery, cleaning, maintenance, and marketing services for uniforms and accessories; provides managed restroom services; and rents uniforms, work clothing, outerwear, particulate-free garments, and non-garment items and related services that include mats, shop towels, and first aid supplies.
On November 16, RBC Capital analyst Ashish Sabadra raised his price target on Aramark (NYSE:ARMK) to $45 from $38 and kept a Sector Perform rating on the shares. Aramark (NYSE:ARMK)’s Q4 revenue topped expectations thanks to strong new business wins and continued reopening benefits, the analyst tells investors in a research note.
06. Waste Connections, Inc. (NYSE:WCN)
Market Capitalization as of November 18, 2022: $35.69 billion
Waste Connections, Inc. (NYSE:WCN) was founded in 1997 and is based in Woodbridge, Canada. Waste Connections, Inc. (NYSE:WCN) provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada.
Waste Connections, Inc. (NYSE:WCN) also provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flow back water; production wastes and produced water during a well’s operating life; contaminated soils that require treatment during site reclamation; and substances, which require clean-up after a spill, reserve pit clean-up, or pipeline rupture.
05. Republic Services, Inc. (NYSE:RSG)
Market Capitalization as of November 18, 2022: $41.68 billion
Republic Services, Inc. (NYSE:RSG) was incorporated in 1996 and is based in Phoenix, Arizona. Republic Services, Inc. (NYSE:RSG), together with its subsidiaries, offers environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer, and disposal of non-hazardous solid waste, and other environmental solutions. Its collection services include curbside collection of material for transport to transfer stations, landfills, or recycling processing centers; supply of recycling and waste containers; and renting of compactors. In addition, the company engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill and transfer services. Further, Republic Services, Inc. (NYSE:RSG) offers disposal of non-hazardous solid and liquid material and in-plant services, such as transportation and logistics. It serves small-container, large-container, and residential customers. As of December 31, 2021, the company operated through 356 collection operations, 239 transfer stations, 198 active landfills, 71 recycling processing centers, 6 saltwater disposal wells, and 7 deep injection wells, as well as 3 treatment, recovery, and disposal facilities in 41 states. It also operated 77 landfill gas-to-energy and renewable energy projects and had 124 closed landfills.
On October 24, Jefferies analyst Stephanie Moore assumed coverage of Republic Services, Inc. (NYSE:RSG) with a Buy rating and a $165 price target. The analyst is bullish on the company’s top-line growth opportunity with pricing momentum in the early stages and its favorable exposure to faster-growing markets. Moore also believes there is an upside to its recent U.S. Ecology deal as it implements its solid waste playbook around pricing and drives cross-selling.
04. Ecolab Inc. (NYSE:ECL)
Market Capitalization as of November 18, 2022: $42.13 billion
Ecolab Inc. (NYSE:ECL) was founded in 1923 and is based in Saint Paul, Minnesota. Ecolab Inc. (NYSE:ECL) provides water, hygiene, and infection prevention solutions and services in the United States and internationally. The company operates through Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences segments. During Q3 2022, The Gates Foundation increased its position in Ecolab Inc. (NYSE:ECL) by 12%. The fund currently owns over 4.8 million shares in the company, worth $702.8 million. The company accounted for 2.06% of Bill Gates’ portfolio.
Ecolab Inc. (NYSE:ECL) holds one of the strongest dividend policies. The company has been paying dividends on its common stock for the past 85 years and has raised its payouts for 30 years in a row. It currently offers a quarterly dividend of $0.51 per share and has a dividend yield of 1.38%, as of November 17.
On November 3, BMO Capital analyst John McNulty lowered his price target on Ecolab Inc. (NYSE:ECL) to $143 from $169 and kept a Market Perform rating on the shares. The analyst cites the company’s lower-than-expected Q3 earnings and guidance, adding that even though Ecolab Inc. (NYSE:ECL) appears to be setting a low bar, he remains on the sidelines as expectations need to reflect a number of its end markets coming under extreme pressure.
03. Cintas Corporation (NASDAQ:CTAS)
Market Capitalization as of November 18, 2022: $45.01 billion
Cintas Corporation was founded in 1968 and is headquartered in Cincinnati, Ohio. Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame-resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms. It also offers first aid and safety services, and fire protection products and services.
Israel Englander’s Millennium Management is a significant shareholder of Cintas Corporation (NASDAQ:CTAS) as of Q3, 2022. The fund held 506,130 of the company’s shares valued at $196.47 million. On October 25, Jefferies analyst Stephanie Moore assumed coverage of Cintas Corporation (NASDAQ:CTAS) with a Buy rating with a price target of $463, down from $471. She is bullish on Cintas Corporation (NASDAQ:CTAS) ability to consistently post high-single-digit percentage organic revenue growth as it penetrates new and existing customers with more products and services, Moore tells investors.
02. Perma-Fix Environmental Services, Inc. (NASDAQ:PESI)
Market Capitalization as of November 18, 2022: $52.76 billion
Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) was incorporated in 1990 and is based in Atlanta, Georgia. Perma-Fix Environmental Services, Inc. (NASDAQ:PESI), through its subsidiaries, operates as an environmental and technological know-how company in the United States. It operates in three segments: Treatment, Services, and Medical. The Treatment segment offers nuclear, low-level radioactive, mixed waste, hazardous and non-hazardous waste treatment, and processing and disposal services through treatment and storage facilities. This segment is also involved in research and development activities to identify, develop, and implement waste processing techniques for problematic waste streams.
In July this year, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) announced that Nuclear Waste Services (NWS), a division of the United Kingdom’s Nuclear Decommissioning Authority (NDA), has chosen Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) as one of only three suppliers for a Framework Contract. Nuclear Waste Services is responsible for managing the UK’s nuclear waste safely and securely for future generations. Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) has been chosen to compete for the firm, fixed-price, and cost-reimbursement task orders for the treatment and conditioning of radioactive waste in the UK, with a maximum ceiling of £41 million over four years.
01. Waste Management, Inc. (NYSE:WM)
Market Capitalization as of November 18, 2022: $65.3 billion
Topping our list of the 15 biggest commercial janitorial companies in the USA is Waste Management, Inc. (NYSE:WM). Waste Management, Inc. (NYSE:WM) was incorporated in 1987 and is based in Houston, Texas. Waste Management, Inc. (NYSE:WM) through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America.
In the past five years, Waste Management, Inc. (NYSE:WM) has raised its dividends at a CAGR of 6%. Overall, the company has grown its dividends for 15 years. It currently pays a quarterly dividend of $0.65 per share and has a dividend yield of 1.65%, as of November 17. The Gates Foundation has been investing in Waste Management, Inc. (NYSE:WM) since the third quarter of 2012. During Q3 2022, the hedge fund increased its position in the company by 90%, which takes its total WM stake to over $5.6 billion. The company represented 16.6% of Bill Gates’ portfolio.
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Disclosure: None. 12 Biggest Commercial Janitorial Companies In USA is originally published on Insider Monkey.
