Clarus (CLAR) AI Stock Analysis

Compare

318 Followers

Top Page

Clarus

(NASDAQ:CLAR)

Rating:48Neutral

Price Target:

$3.00

▼( -3.85% Downside)

Clarus faces significant challenges with profitability and operational inefficiencies, reflected in its financial performance and technical indicators. While some positive elements were highlighted in the earnings call, such as exceeding sales expectations and successful inventory management, the overall outlook is cautious due to negative earnings and market uncertainties. The stock's technical downtrend and negative valuation metrics further weigh on its score.

Clarus (CLAR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$119.81M

Dividend Yield3.21%

Average Volume (3M)180.45K

Price to Earnings (P/E)33.6

Beta (1Y)0.73

Revenue Growth-1.01%

EPS Growth-886.54%

CountryUS

Employees470

SectorConsumer Cyclical

Sector Strength75

IndustryLeisure

Share Statistics

EPS (TTM)-0.14

Shares Outstanding38,401,825

10 Day Avg. Volume163,034

30 Day Avg. Volume180,454

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)0.53

Price to Sales (P/S)0.00

P/FCF Ratio-8.82

Enterprise Value/Market Cap0.79

Enterprise Value/Revenue0.10

Enterprise Value/Gross Profit1.12

Enterprise Value/Ebitda-2.03

Forecast

1Y Price Target

$4.63

Price Target Upside48.40% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

Clarus Business Overview & Revenue Model

Company DescriptionClarus Corporation (CLAR) is a designer, developer, manufacturer, and distributor of outdoor equipment and lifestyle products. The company operates through multiple brands, with a focus on high-quality, performance-oriented products in the outdoor and consumer markets. Its core product categories include climbing, skiing, mountain, and other outdoor activities, serving a diverse range of enthusiasts and professionals worldwide.

How the Company Makes MoneyClarus Corporation generates revenue primarily through the sale of its outdoor equipment and lifestyle products across various brands. Key revenue streams include wholesale distribution to retail partners, direct-to-consumer sales via e-commerce platforms, and international sales through a global distribution network. The company leverages strong brand recognition and a loyal customer base to drive sales. Strategic acquisitions and partnerships, along with a focus on innovation and product development, also play significant roles in expanding its market reach and enhancing revenue potential.

Clarus Financial Statement Overview

Summary

Clarus faces profitability and growth challenges with declining revenues and consistent net losses. The balance sheet remains strong with low leverage and high equity ratio, but negative cash flow from operations and free cash flow indicate liquidity concerns. The company needs to focus on improving operational efficiency and revenue growth to enhance financial stability.

Income Statement

Neutral

Clarus has faced declining revenues and profitability issues. The gross profit margin decreased from 34.1% (2023) to 35.1% (2024), and net profit margin remained negative, reflecting challenges in achieving profitability. Revenue growth rate from 2023 to 2024 was -7.6%, indicating a contraction. EBIT and EBITDA margins are negative, with significant operating losses in 2024.

Balance Sheet

Neutral

Clarus exhibits a stable equity base with a high equity ratio of 79.3% in 2024, indicating a strong capital structure. However, the debt-to-equity ratio decreased to 0.008, reflecting reduced leverage. Return on Equity remains negative due to net losses, highlighting profitability challenges.

Cash Flow

Neutral

The company has struggled with negative free cash flow growth and deteriorating operating cash flow. Free cash flow in 2024 turned negative, and the operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the high investing cash flow suggests some liquidity improvements.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
264.31M	286.02M	448.11M	375.79M	224.01M
	Gross Profit
92.62M	97.51M	163.42M	136.93M	77.80M
	EBIT
-70.38M	-21.11M	3.58M	11.24M	-1.59M
	EBITDA
-9.35M	1.49M	12.36M	13.03M	14.62M
	Net Income Common Stockholders
-52.29M	-10.15M	-69.78M	26.09M	5.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.36M	11.32M	12.06M	19.46M	17.79M
	Total Assets
294.09M	495.34M	518.14M	631.83M	280.69M
	Total Debt
16.65M	136.00M	139.03M	141.53M	34.62M
	Net Debt
-28.71M	124.67M	126.97M	122.07M	16.83M
	Total Liabilities
61.00M	203.22M	226.04M	261.66M	76.10M
	Stockholders Equity
233.09M	292.12M	292.11M	370.17M	204.59M
Cash Flow		Free Cash Flow
-14.04M	25.96M	6.36M	-17.69M	23.98M
	Operating Cash Flow
-7.30M	31.92M	14.61M	-304.00K	29.39M
	Investing Cash Flow
165.16M	-11.42M	-7.75M	-178.14M	-35.58M
	Financing Cash Flow
-123.24M	-20.25M	-13.86M	180.68M	22.25M

Clarus Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.12

Price Trends

50DMA

3.48

Negative

100DMA

4.01

Negative

200DMA

4.20

Negative

Market Momentum

MACD

-0.10

Negative

RSI

40.59

Neutral

STOCH

20.57

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLAR, the sentiment is Negative. The current price of 3.12 is below the 20-day moving average (MA) of 3.25, below the 50-day MA of 3.48, and below the 200-day MA of 4.20, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 40.59 is Neutral, neither overbought nor oversold. The STOCH value of 20.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLAR.

Clarus Risk Analysis

Clarus disclosed 47 risk factors in its most recent earnings report. Clarus reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 1 New Risks

Compliance costs related to environmental requirements, including those associated with Per- and Polyfluoroalkyl Substances (PFAS), could negatively impact our financial results. Q4, 2024

Clarus Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESCA	67 Neutral	$187.64M	13.82	8.29%	4.41%	-5.40%	9.57%
Sector *	62 Neutral	$6.84B	11.23	3.09%	3.95%	2.66%	-25.23%
JOUT	59 Neutral	$270.32M	―	-9.70%	4.99%	-7.28%	-924.86%
AOUT	53 Neutral	$147.21M	―	-2.43%	―	4.91%	58.25%
CLAR	48 Neutral	$119.81M	33.59	-32.32%	3.21%	-1.01%	-886.54%
FNKO	46 Neutral	$214.80M	―	-9.24%	―	-3.30%	85.53%
DOGZ	42 Neutral	$279.44M	―	-6.23%	―	46.16%	2.75%

* Consumer Cyclical Sector Average

Performance Comparison

CLAR

Clarus

3.09

-3.65

-54.15%

ESCA

Escalade

13.61

0.60

4.61%

JOUT

Johnson Outdoors

27.49

-6.05

-18.04%

FNKO

Funko

4.06

-4.59

-53.06%

DOGZ

Dogness (International)

21.95

11.44

108.85%

AOUT

American Outdoor Brands

11.56

3.51

43.60%

Clarus Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -10.09%|

Next Earnings Date:Aug 04, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Clarus Corporation's successful navigation of challenging market conditions, with net sales exceeding expectations and positive inventory and operating expense management. However, the company faces significant challenges, including a notable decline in the Adventure segment, margin impacts from tariffs, and the withdrawal of full-year guidance due to economic uncertainty.

Q1-2025 Updates

Positive Updates

Q1 Net Sales Above Expectations

Clarus Corporation reported Q1 net sales of $60.4 million, which were above expectations despite challenging market conditions.

Inventory Management Success

Inventories ended the quarter down 3.5% year over year at $60.6 million, with 74% in best ACE styles, reflecting successful inventory management.

Positive Feedback on Revamped Apparel Line

Strong feedback from partners on the revamped Black Diamond apparel line, supported by new creative direction.

Significant Reduction in Operating Expenses

Operating expenses, excluding restructuring charges, were down 7.3% due to cost structure optimization.

Successful Divestiture of PEEPS Snow Safety Brand

Clarus entered an agreement to sell the PEEPS snow safety brand for €7.8 million, aligning with their business simplification strategy.

Negative Updates

Significant Revenue Decline in Adventure Segment

Adventure segment revenue decreased by 28% due to a significant decline in performance from three specific accounts.

Gross Margin Decline

Gross margin for the quarter was down 80 basis points compared to the prior year, impacted by lower volumes and unfavorable product mix.

Withdrawal of Full-Year Guidance

Clarus withdrew its full-year 2025 guidance due to economic uncertainty and potential impacts from US trade policies.

Impact of Tariffs on Profit Margins

Tariffs, especially the 145% on certain China-sourced products, are expected to impact margins by $3.5 to $4 million.

Adjusted EBITDA Loss

Clarus reported a negative adjusted EBITDA of $800,000, which was short of the guidance for breakeven.

Company Guidance

In the first quarter of fiscal year 2025, Clarus Corporation reported net sales of $60.4 million, surpassing expectations despite a challenging consumer market. The outdoor segment generated $44.3 million in revenue, down 5.7% year-over-year, primarily due to planned declines in the ski business and optimal revenue timing shifts. North America wholesale sales decreased by 7.3%, while Europe digital direct-to-consumer sales rose by 10.7%. Adventure segment revenue fell by 28%, largely from a $5.4 million drop in sales from three major customers. Gross margin decreased to 34.4%, impacted by a higher mix of discontinued merchandise. Adjusted EBITDA was a loss of $800,000. Clarus withdrew its full-year guidance due to economic uncertainty stemming from U.S. trade policies, emphasizing a focus on mitigating tariff impacts and maintaining financial strength.

Clarus Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Clarus Strengthens Leadership and Legal Framework

Positive

Dec 9, 2024

Clarus Corporation has updated its indemnity agreements with key executives, ensuring comprehensive legal protection for them under Delaware law. Additionally, the company has appointed Mark M. Besca, a seasoned financial expert with extensive audit experience, to its Board of Directors, expanding the board from six to seven members. Besca’s appointment aligns with the company’s strategic focus on leveraging seasoned expertise to navigate the financial landscape effectively.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.