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Clarus Corporation (CLAR)
NASDAQ:CLAR
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Clarus
(NASDAQ:CLAR)
Rating:48Neutral
Price Target:
$3.00
▼( -3.85% Downside)
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
$4.63Price Target Upside48.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Clarus Business Overview & Revenue Model
Company DescriptionClarus 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 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
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 2024.45
Neutral
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.55
Neutral
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.60
Neutral
| 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
Negative
3.12
Price Trends
3.48
Negative
4.01
Negative
4.20
Negative
Market Momentum
-0.10
Negative
40.59
Neutral
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
1.
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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $187.64M | 13.82 | 8.29% | 4.41% | -5.40% | 9.57% | |
62 Neutral | $6.84B | 11.23 | 3.09% | 3.95% | 2.66% | -25.23% | |
59 Neutral | $270.32M | ― | -9.70% | 4.99% | -7.28% | -924.86% | |
53 Neutral | $147.21M | ― | -2.43% | ― | 4.91% | 58.25% | |
48 Neutral | $119.81M | 33.59 | -32.32% | 3.21% | -1.01% | -886.54% | |
46 Neutral | $214.80M | ― | -9.24% | ― | -3.30% | 85.53% | |
42 Neutral | $279.44M | ― | -6.23% | ― | 46.16% | 2.75% |
* Consumer Cyclical Sector Average
Performance Comparison
CLAR
Clarus
3.12
-3.62
-53.71%
ESCA
Escalade
13.61
0.60
4.61%
JOUT
Johnson Outdoors
26.44
-7.10
-21.17%
FNKO
Funko
3.91
-4.74
-54.80%
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.