Clarus (CLAR) AI Stock Analysis

• Market Cap: $130.57M
• Dividend Yield: 2.94%
• Average Volume (3M): 141.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 30.34%
• EPS Growth: -1749.06%
• Country: US
• Employees: 470
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.04
• Shares Outstanding: 38,401,825
• 10 Day Avg. Volume: 185,971
• 30 Day Avg. Volume: 141,122
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -12.31
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: -11.34
• 1Y Price Target: $4.50
• Price Target Upside: 32.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $3.00 ▼(-11.50% Downside)

Clarus Corporation's overall stock score is primarily impacted by its financial performance, which shows significant challenges in profitability and cash flow management. Technical analysis indicates weak momentum, and valuation metrics are concerning with a negative P/E ratio. While the earnings call provided some positive insights, macroeconomic challenges and operational inefficiencies continue to weigh heavily on the company's outlook.

Positive Factors

Revenue Growth

The revenue growth indicates a positive trend in market demand and successful product offerings, particularly in the Outdoor segment, which supports long-term business expansion.

Black Diamond Apparel Success

Strong sales growth in the Black Diamond apparel line suggests effective brand positioning and product innovation, enhancing competitive advantage and market share.

Cost Reduction Initiatives

Cost reduction efforts improve operational efficiency, potentially leading to better profitability and financial health, supporting sustainable growth.

Negative Factors

Tariff and FX Impacts

Tariff and FX impacts create cost pressures that can erode margins and profitability, posing a challenge to maintaining competitive pricing and financial stability.

Adventure Segment Margin Erosion

Margin erosion in the Adventure segment indicates pricing pressure and cost challenges, which can impact overall profitability and require strategic adjustments.

Challenges in D2C Channels

Declines in direct-to-consumer sales suggest challenges in digital strategy and consumer engagement, potentially affecting revenue growth and brand loyalty.

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 generates revenue through the sale of its outdoor gear and equipment across various channels, including retail, e-commerce, and international distribution. The company has multiple key revenue streams, including direct sales of climbing gear, skiing equipment, and apparel, as well as partnerships with retailers and distributors that expand its market reach. Additionally, Clarus benefits from brand loyalty and a strong reputation in the outdoor community, which contributes to consistent sales growth. Seasonal peaks during winter and summer sports also significantly influence its earnings, along with ongoing investments in product innovation and marketing efforts.

Clarus Financial Statement Overview

Summary

Clarus faces significant financial challenges, with declining revenues and persistent profitability issues. While the balance sheet shows some improvement in leverage, negative cash flows and profitability metrics highlight the need for strategic adjustments.

Income Statement

Clarus has experienced significant volatility in its revenue growth, with a notable decline in recent years. The gross profit margin has been relatively stable, but the company has struggled with negative net profit margins, indicating ongoing profitability challenges. The EBIT and EBITDA margins have also been negative, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved, indicating a reduction in leverage, which is a positive sign. However, the return on equity remains negative, highlighting ongoing profitability issues. The equity ratio suggests a stable capital structure, but the company needs to address its profitability to enhance shareholder value.

Cash Flow

Clarus has faced challenges in generating positive operating and free cash flows, with recent periods showing negative figures. The free cash flow to net income ratio is high, indicating that cash flow generation is not aligned with reported earnings. The company needs to improve its cash flow management to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	256.43M	264.31M	286.02M	315.25M	265.97M	224.01M
Gross Profit	88.70M	92.62M	97.51M	109.95M	87.87M	77.80M
EBITDA	-10.64M	-9.35M	1.49M	12.09M	13.03M	13.72M
Net Income	-80.82M	-52.29M	-10.15M	-69.78M	26.09M	5.54M
Balance Sheet
Total Assets	283.07M	294.09M	495.34M	518.14M	631.83M	280.69M
Cash, Cash Equivalents and Short-Term Investments	29.51M	45.36M	11.32M	11.98M	19.46M	17.79M
Total Debt	14.99M	16.65M	136.00M	154.65M	159.47M	40.01M
Total Liabilities	57.27M	61.00M	203.22M	226.04M	261.66M	76.10M
Stockholders Equity	225.81M	233.09M	292.12M	292.11M	370.17M	204.59M
Cash Flow
Free Cash Flow	-7.14M	-14.04M	25.96M	6.36M	-17.69M	23.98M
Operating Cash Flow	-664.00K	-7.30M	31.92M	14.61M	-304.00K	29.39M
Investing Cash Flow	-2.36M	165.16M	-11.42M	-7.75M	-178.14M	-35.58M
Financing Cash Flow	-3.88M	-123.24M	-20.25M	-13.86M	180.68M	22.25M

Clarus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.39 is below the 20-day moving average (MA) of 3.47, below the 50-day MA of 3.41, and below the 200-day MA of 3.50, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 20.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLAR.

Clarus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	74 Outperform	$4.90B	22.85	25.91%	1.13%	4.20%	24.12%
ESCA	72 Outperform	$180.14M	14.34	7.42%	4.62%	-4.56%	-2.85%
MODG	64 Neutral	$2.15B	―	-46.95%	―	-3.58%	-12720.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JOUT	60 Neutral	$451.33M	-13.38	-7.78%	3.22%	-0.07%	-31.45%
AOUT	49 Neutral	$102.96M	-18.96	-3.19%	―	2.85%	24.82%
CLAR	45 Neutral	$130.57M	-1.61	-33.17%	2.94%	30.34%	-1749.06%

Clarus Corporate Events

Clarus Corp’s Earnings Call: Mixed Results Amid Challenges

Clarus Corp’s recent earnings call presented a mixed sentiment, highlighting both achievements and ongoing challenges. The company showcased financial improvements, particularly in its Outdoor segment, and successful cost reduction initiatives. However, it continues to grapple with significant challenges, including tariffs, foreign exchange impacts, and margin pressures in its Adventure segment. Despite positive growth signs, the macroeconomic environment remains a formidable challenge.

Clarus Corp Reports Growth Amidst Challenging Market

Clarus Corporation, headquartered in Salt Lake City, Utah, is a global leader in the design and development of equipment and lifestyle products for outdoor enthusiasts, known for its innovative brands like Black Diamond and Rhino-Rack.