Clarus (CLAR) AI Stock Analysis

• Market Cap: $136.33M
• Dividend Yield: 2.82%
• Average Volume (3M): 137.62K
• Price to Earnings (P/E): 33.6
• Beta (1Y): 0.75
• Revenue Growth: -1.01%
• EPS Growth: -886.54%
• Country: US
• Employees: 470
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Leisure
• EPS (TTM): -0.14
• Shares Outstanding: 38,401,825
• 10 Day Avg. Volume: 105,491
• 30 Day Avg. Volume: 137,616
• PEG Ratio: 0.13
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 74.80
• Enterprise Value/Market Cap: 3.12
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -5.91
• 1Y Price Target: $4.63
• Price Target Upside: 30.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $3.50 ▼(-1.41%Downside)

Clarus's overall stock score is primarily impacted by financial performance challenges, including declining revenues and negative profit margins. Technical indicators offer some positive momentum, but valuation remains a concern due to a negative P/E ratio. While the earnings call showed some operational successes, uncertainties and challenges remain significant.

Clarus Business Overview & Revenue Model

Company Description

Clarus Corporation develops, manufactures, and distributes outdoor equipment and lifestyle products focusing on the outdoor and consumer markets in the United States, Canada, Europe, the Middle East, Asia, Australia, New Zealand, Africa, and South America. Its Outdoor segment offers activity-based apparel, such as shells, insulation, midlayers, pants, and logowear; rock-climbing footwear and equipment, including carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gears; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; skincare and other products; and skis, ski poles, ski skins, and snow safety products, such as avalanche airbag systems, avalanche transceivers, shovels, and probes. This segment offers its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment, PIEPS, and SKINourishment brands. The company's Precision Sport segment manufactures bullets and ammunition products for precision target shooting, hunting, and military and law enforcement purposes under the Sierra and Barnes brands. The company sells its products to mountain, rock, ice, and gym climbers; and winter outdoor enthusiasts, trail runners, backpackers, competitive shooters, hunters, and outdoor consumers. Its Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, and accessories under the Rhino-Rack brand; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand. It markets and distributes its products through independent specialty stores and specialty chains, sporting goods and outdoor recreation stores, distributors, and original equipment manufacturers; and independent distributors, as well as through its websites. The company was incorporated in 1991 and is headquartered in Salt Lake City, Utah.

How the Company Makes Money

Clarus Corporation makes money by designing, manufacturing, and selling a diverse range of outdoor and lifestyle products through its various brands. The company's revenue streams include direct sales through retail and e-commerce channels and wholesale distribution to specialty retailers and third-party distributors. Key revenue contributors are its flagship brands like Black Diamond, which caters to outdoor enthusiasts with gear for activities like climbing and skiing, and Sierra Bullets, which provides precision ammunition. Partnerships with retailers and distributors enhance market reach, while strategic acquisitions expand product offerings and consumer base, driving overall earnings.

Clarus Financial Statement Overview

Summary

Clarus is experiencing significant profitability challenges with declining revenues and negative profit margins. Despite a strong equity position, cash flow generation is inconsistent and volatile. Addressing operational inefficiencies and improving revenue generation are crucial for enhancing financial health.

Income Statement

For the TTM, Clarus has experienced a significant decline in total revenue compared to the previous year, indicating a revenue decrease. Gross profit margin stands at 33.3%, which is relatively stable, but the negative EBIT and net income margins reflect operational challenges and profitability issues. Profit margins are under pressure, with a net profit margin of -31.1% and EBIT margin of -26.8%, highlighting significant operational inefficiencies.

Balance Sheet

The balance sheet shows a stable equity position with a high equity ratio of 78.3%, implying a strong capital structure. However, the low debt level results in a low debt-to-equity ratio of 0.008, which might limit leverage opportunities. The return on equity is negative due to net losses, indicating inefficiencies in generating returns for shareholders.

Cash Flow

Clarus's free cash flow is positive, but the growth rate is inconsistent. The operating cash flow to net income ratio suggests cash flow generation challenges. The free cash flow to net income ratio is positive, indicating that the company is generating some level of cash beyond its net losses. However, cash flows remain volatile with significant fluctuations in recent periods.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
255.30M	264.31M	286.02M	315.25M	265.97M	224.01M
	Gross Profit
88.56M	92.62M	97.51M	110.22M	136.93M	77.80M
	EBIT
-70.37M	-70.38M	-21.11M	-106.48M	-12.70M	3.93M
	EBITDA
-9.80M	-9.35M	1.49M	12.09M	13.03M	14.62M
	Net Income Common Stockholders
-79.42M	-52.29M	-10.15M	-69.78M	26.09M	5.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.31M	45.36M	11.32M	12.06M	19.46M	17.79M
	Total Assets
292.84M	294.09M	495.34M	518.14M	631.83M	280.69M
	Total Debt
1.92M	16.65M	136.00M	139.03M	141.53M	34.62M
	Net Debt
-39.40M	-28.71M	124.67M	126.97M	122.07M	16.83M
	Total Liabilities
63.55M	61.00M	203.22M	226.04M	261.66M	76.10M
	Stockholders Equity
229.29M	233.09M	292.12M	292.11M	370.17M	204.59M
Cash Flow		Free Cash Flow
1.22M	-14.04M	25.96M	6.36M	-17.69M	23.98M
	Operating Cash Flow
6.99M	-7.30M	31.92M	14.61M	-304.00K	29.39M
	Investing Cash Flow
-9.63M	165.16M	-11.42M	-7.75M	-178.14M	-35.58M
	Financing Cash Flow
-3.39M	-123.24M	-20.25M	-13.86M	180.68M	22.25M

Clarus Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLAR, the sentiment is Neutral. The current price of 3.55 is above the 20-day moving average (MA) of 3.29, above the 50-day MA of 3.32, and below the 200-day MA of 4.12, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 88.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLAR.

Clarus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESCA	68 Neutral	$190.26M	14.01	8.29%	4.34%	-5.40%	9.57%
Sector *	62 Neutral	$6.88B	11.07	2.77%	4.28%	2.67%	-24.94%
JOUT	61 Neutral	$302.42M	―	-9.70%	4.46%	-7.28%	-924.86%
CLAR	55 Neutral	$136.33M	33.59	-32.32%	2.82%	-1.01%	-886.54%
AOUT	54 Neutral	$143.39M	―	-2.43%	―	4.91%	58.25%
DOGZ	50 Neutral	$377.08M	―	-6.23%	―	46.16%	2.75%
FNKO	49 Neutral	$278.52M	―	-9.24%	―	-3.30%	85.53%

Clarus Corporate Events

Clarus Approves Stock Incentive Plan Changes

On May 29, 2025, Clarus Corporation held its Annual Meeting of Stockholders, where significant decisions were made regarding the company’s governance and stock incentive plans. The meeting saw the approval of the Amended and Restated 2015 Stock Incentive Plan, which introduced changes such as reducing the number of shares available for issuance and removing certain provisions to align with current best practices. Additionally, the election of five director nominees was confirmed, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the year ending December 31, 2025. Furthermore, the company approved Executive Chairman Warren B. Kanders’ request to increase his beneficial ownership to up to 32.9% of the company’s outstanding shares, subject to certain conditions.

The most recent analyst rating on (CLAR) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Clarus stock, see the CLAR Stock Forecast page.