Clarus (CLAR) AI Stock Analysis

• Market Cap: $143.62M
• Dividend Yield: 2.67%
• Average Volume (3M): 206.04K
• Price to Earnings (P/E): 33.6
• Beta (1Y): 0.82
• Revenue Growth: 10.53%
• EPS Growth: -1318.01%
• Country: US
• Employees: 470
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Leisure
• EPS (TTM): -0.22
• Shares Outstanding: 38,401,825
• 10 Day Avg. Volume: 129,927
• 30 Day Avg. Volume: 206,040
• 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: 0.84
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: -10.59
• 1Y Price Target: $4.67
• Price Target Upside: 24.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $4.00 ▲(6.95% Upside)

Clarus's overall stock score is primarily influenced by its financial struggles, with declining revenue and profitability being significant concerns. Technical analysis provides some positive signals, but valuation remains weak due to negative earnings. The earnings call offers a mixed outlook, with strategic improvements offset by external challenges.

Positive Factors

Earnings

Clarus reported Q4 revenue that was higher than expected.

Product Mix

Some positive takeaways include modest year-over-year growth in outdoor (1%) despite the tough macro environment and a favorable product mix in the quarter.

Segment Performance

Most of the upside came from the Adventurer segment with sales of $20.3M above the $17.3M estimate.

Negative Factors

Guidance

Management gave initial FY25 guidance with revenue guided to a range of $250-$260M versus the prior estimate of $285M.

Investigations

The ongoing DOJ and CPSC investigations present potential downside risk, both financial and reputational.

Macroeconomic Pressures

The lower-than-expected guidance reflects continued macroeconomic pressures and weaker-than-expected demand in the Adventure segment.

Clarus Business Overview & Revenue Model

Company Description

Clarus Corporation (CLAR) is a global leader in the outdoor and sporting goods sector, specializing in the design, manufacture, and distribution of premium outdoor products. The company operates primarily through its well-known brands, including Black Diamond Equipment and Sierra Designs, which cater to a diverse range of outdoor enthusiasts by offering equipment and apparel for climbing, skiing, and mountain sports. Clarus is committed to innovation and sustainability, striving to meet the needs of its customers while promoting environmental responsibility in the outdoor industry.

How the Company Makes Money

Clarus generates revenue through multiple key streams, primarily by selling outdoor gear and equipment under its brands. The company’s revenue model is built around direct sales to consumers, wholesalers, and retailers, which allows for a broad distribution of its products. Key revenue streams include sales of climbing gear, skiing equipment, and outdoor apparel, all of which are marketed to both individual consumers and commercial clients such as retailers and outdoor specialty shops. Additionally, Clarus benefits from strategic partnerships with retailers and distributors, which enhance its market reach and brand visibility. The company's focus on high-quality, innovative products helps maintain customer loyalty and drives repeat sales, while seasonal trends in outdoor activities also impact revenue generation.

Clarus Financial Statement Overview

Summary

Clarus is facing financial difficulties with declining revenue, negative profitability, and cash flow issues. However, a strong equity base and low leverage offer some stability.

Income Statement

Clarus has faced significant challenges, as indicated by the declining revenue with a noticeable drop from $315.3M in 2022 to $254.2M in TTM (Trailing-Twelve-Months). Gross profit margin has been decreasing, and net profit margins have turned negative, reflecting ongoing operational difficulties. The TTM shows a negative EBIT and EBITDA margin, further highlighting profitability issues.

Balance Sheet

The balance sheet shows moderate stability with a low debt-to-equity ratio due to reduced debt levels. However, a decreasing equity ratio and a declining return on equity indicate financial strain. The company maintains substantial stockholders' equity, providing some buffer against liabilities.

Cash Flow

Clarus experiences negative operating and free cash flows in the TTM, suggesting cash generation issues. The free cash flow has declined significantly, posing potential liquidity risks. However, the company's cash flow management has previously shown resilience with positive free cash flow in 2023.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	254.70M	264.31M	286.02M	315.25M	265.97M	224.01M
Gross Profit	85.25M	92.62M	97.51M	110.22M	136.93M	77.80M
EBITDA	-11.40M	-9.35M	1.49M	12.09M	13.03M	14.62M
Net Income	-82.36M	-52.29M	-10.15M	-69.78M	26.09M	5.54M
Balance Sheet
Total Assets	286.51M	294.09M	495.34M	518.14M	631.83M	280.69M
Cash, Cash Equivalents and Short-Term Investments	28.47M	45.36M	11.32M	12.06M	19.46M	17.79M
Total Debt	15.89M	16.65M	136.00M	139.03M	141.53M	34.62M
Total Liabilities	61.39M	61.00M	203.22M	226.04M	261.66M	76.10M
Stockholders Equity	225.12M	233.09M	292.12M	292.11M	370.17M	204.59M
Cash Flow
Free Cash Flow	-9.33M	-14.04M	25.96M	6.36M	-17.69M	23.98M
Operating Cash Flow	-3.27M	-7.30M	31.92M	14.61M	-304.00K	29.39M
Investing Cash Flow	-9.99M	165.16M	-11.42M	-7.75M	-178.14M	-35.58M
Financing Cash Flow	-3.60M	-123.24M	-20.25M	-13.86M	180.68M	22.25M

Clarus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.74
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 3.74 is above the 20-day moving average (MA) of 3.42, above the 50-day MA of 3.53, and below the 200-day MA of 3.91, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 82.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLAR.

Clarus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESCA	70 Neutral	$177.93M	14.34	7.66%	4.65%	-6.65%	8.79%
JOUT	67 Neutral	$434.82M	―	-8.33%	3.12%	-3.56%	-407.47%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
AOUT	61 Neutral	$132.04M	―	-0.04%	―	10.55%	99.28%
CLAR	54 Neutral	$143.62M	33.59	-33.87%	2.67%	10.53%	-1318.01%
FNKO	44 Neutral	$172.74M	―	-32.24%	―	-9.07%	-38.09%
DOGZ	41 Neutral	$130.49M	―	-6.23%	―	46.16%	2.75%

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.