Clarus (CLAR) AI Stock Analysis

• Market Cap: $128.65M
• Dividend Yield: 2.98%
• Average Volume (3M): 209.46K
• Price to Earnings (P/E): 33.6
• Beta (1Y): 0.74
• Revenue Growth: -7.66%
• EPS Growth: -413.50%
• Country: US
• Employees: 470
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Leisure
• EPS (TTM): -1.36
• Shares Outstanding: 38,401,825
• 10 Day Avg. Volume: 217,578
• 30 Day Avg. Volume: 209,455
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.55
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.44
• Price Target Upside: 62.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Clarus' overall stock score reflects significant challenges in financial performance due to declining revenues and net losses, despite a strong balance sheet. Technical indicators are weak, indicating negative momentum, though valuation metrics highlight risks with profitability. The earnings call suggests cautious optimism with potential margin improvements, but revenue decline and external uncertainties remain key concerns.

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 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 net losses. However, it maintains a strong balance sheet with low leverage and a high equity ratio. Negative cash flows from operations and free cash flow indicate liquidity concerns.

Income Statement

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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 Price: 3.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 3.35 is below the 20-day moving average (MA) of 3.39, below the 50-day MA of 3.84, and below the 200-day MA of 4.41, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 25.84 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
ESCA	74 Outperform	$205.50M	16.26	7.79%	3.92%	-4.57%	31.28%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%
JOUT	55 Neutral	$251.91M	―	-9.70%	5.36%	-9.98%	-348.96%
AOUT	54 Neutral	$147.21M	―	-2.43%	―	4.91%	58.25%
CLAR	50 Neutral	$128.65M	33.59	-33.68%	2.98%	-7.66%	-413.50%
FNKO	46 Neutral	$226.32M	―	-6.33%	―	-4.22%	90.89%
DOGZ	40 Underperform	$201.02M	―	-6.23%	―	46.16%	2.75%

Clarus Corporate Events

Clarus Strengthens Leadership and Legal Framework

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.