Education
About Us
Working with TipRanks
Follow Us
Clearfield (CLFD)
NASDAQ:CLFD
Top Page
Clearfield
(NASDAQ:CLFD)
59Neutral
Positive Factors
Financial Performance
Clearfield reported revenue in line with estimates, with significant outperformance on the bottom line.
Market Opportunities
Reduced regulations for government programs and inventory trends should allow CLFD to capitalize on the C25 build season.
Strategic Initiatives
Flexible manufacturing capabilities and a healthy balance sheet allow the company to pivot as needed around new trade policies.
Negative Factors
Guidance
Guidance for F1Q25 revenue/EPS was provided below consensus expectations.
Market Challenges
The company guided for FY2Q revenue of $37-$40M and reiterated FY25 revenue guidance of $170-$185M.
Sales Backlog
Backlog decreased -40% year over year on shortening lead-times.
Clearfield (CLFD) vs. S&P 500 (SPY)
Market Cap
$422.96M
Dividend YieldN/A
Average Volume (3M)115.85K
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth-22.61%
EPS Growth-173.59%
CountryUS
Employees400
SectorTechnology
Sector Strength43
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.63
Shares Outstanding14,131,537
10 Day Avg. Volume86,494
30 Day Avg. Volume115,852
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.63
Price to Cash Flow (P/CF)15.50
P/FCF Ratio21.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$46.00Price Target Upside53.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Clearfield Business Overview & Revenue Model
Company DescriptionClearfield, Inc. manufactures, markets, and sells standard and custom passive connectivity products to the fiber-to-the-premises, enterprises, and original equipment manufacturers markets in the United States and internationally. The company offers FieldSmart, a series of panels, cabinets, wall boxes, and other enclosures. It also provides WaveSmart, which are optical components integrated for signal coupling, splitting, termination, multiplexing, demultiplexing, and attenuation for integration within its fiber management platform; and outdoor cabinet and fiber active cabinet products. The company offers StreetSmart, a portfolio of fiber management products; FieldShield, a fiber pathway and protection method for reducing the cost of broadband deployment; and YOURx platform that consists of hardened terminals, test access points, and various drop cable options for portions of the access network across various fiber drop cable media. It also provides CraftSmart, a line of optical protection field enclosures, including CraftSmart Fiber Protection Pedestals and CraftSmart Fiber Protection Vaults integrated solutions optimized to house FieldSmart products at the last mile access point of the network in above-grade or below-grade installations. The company offers fiber and copper assemblies with an industry-standard or customer-specified configuration; and designs and manufactures custom solutions for in-the-box and network connectivity assemblies specific to that customer's product line. It provides its fiber to anywhere platform for various incumbent local exchange carriers, competitive local exchange carriers, wireless operators, and multiple systems operators and cable TV companies, as well as the utility/municipality, enterprise, and data center markets. The company was formerly known as APA Enterprises, Inc. and changed its name to Clearfield, Inc. in January 2008. Clearfield, Inc. was founded in 1979 and is headquartered in Minneapolis, Minnesota.
How the Company Makes MoneyClearfield generates revenue through the sale of its fiber optic management and connectivity products. The company's key revenue streams include the sale of fiber distribution hubs, optical components, and fiber optic cables. Clearfield's financial performance is driven by its ability to meet the growing demand for high-speed broadband networks, which is propelled by increased data consumption and the expansion of 5G infrastructure. Additionally, the company benefits from its strategic partnerships with broadband service providers and its focus on providing customizable, scalable solutions that cater to a wide range of customer needs within the telecommunications sector.
Clearfield Financial Statement Overview
Summary
Clearfield demonstrates mixed financial performance with a strong balance sheet and cash reserves but faces challenges in income generation and growth consistency. Operational inefficiencies and revenue volatility pose risks, while low debt and a solid asset base provide a foundation for potential recovery.Income Statement
Clearfield's income statement shows a challenging period with declining revenues and profitability. The TTM results indicate a significant net loss, which is a substantial decrease from prior periods. The negative EBIT and EBITDA margins highlight operational inefficiencies or increased costs. Historical annual data suggest revenue volatility and fluctuating profit margins, indicating potential instability in the business environment.55
Neutral
Balance Sheet
The balance sheet is relatively strong with a high equity ratio and substantial cash reserves. The company has a low debt-to-equity ratio, indicating conservative leverage, which suggests financial stability. However, the stockholders' equity has been decreasing, which is a concern for long-term growth potential. Despite this, the overall asset base has grown, reflecting potential for recovery and development.75
Positive
Cash Flow
Clearfield's cash flow statement reveals adequate operating cash flow, but the free cash flow growth is inconsistent. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to net income. However, the negative free cash flow growth in recent periods signals challenges in managing capital expenditures and financing activities effectively.65
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 167.95M | 166.71M | 268.72M | 270.88M | 140.76M | 93.07M | Gross Profit |
| 32.37M | 28.89M | 85.28M | 112.95M | 61.18M | 37.91M | EBIT |
| -19.04M | -23.22M | 37.29M | 63.82M | 25.23M | 8.38M | EBITDA |
| -4.34M | -8.34M | 43.34M | 67.23M | 27.54M | 10.81M | Net Income Common Stockholders |
| -9.09M | -12.45M | 32.53M | 49.36M | 20.33M | 7.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 113.01M | 130.99M | 168.11M | 22.45M | 23.59M | 27.03M | Total Assets |
| 303.23M | 315.27M | 355.52M | 229.13M | 125.91M | 95.30M | Total Debt |
| 20.72M | 18.36M | 22.77M | 36.85M | 2.53M | 2.79M | Net Debt |
| -9.73M | 2.19M | -15.06M | 20.20M | -10.69M | -13.65M | Total Liabilities |
| 35.80M | 39.51M | 40.35M | 81.55M | 22.09M | 12.54M | Stockholders Equity |
| 267.44M | 275.76M | 315.16M | 147.58M | 103.82M | 82.75M |
| Cash Flow | Free Cash Flow | ||||
| 12.32M | 12.66M | 11.63M | -8.15M | 8.86M | 4.85M | Operating Cash Flow |
| 21.55M | 22.22M | 20.01M | 1.00M | 10.90M | 6.66M | Investing Cash Flow |
| 5.59M | -6.90M | -112.25M | -8.20M | -13.60M | -41.13K | Financing Cash Flow |
| -31.12M | -36.91M | 113.42M | 10.65M | -536.00K | -246.73K |
Clearfield Technical Analysis
Negative
29.93
Price Trends
33.28
Negative
32.74
Negative
35.58
Negative
Market Momentum
-0.42
Negative
42.13
Neutral
40.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLFD, the sentiment is Negative. The current price of 29.93 is below the 20-day moving average (MA) of 30.21, below the 50-day MA of 33.28, and below the 200-day MA of 35.58, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 42.13 is Neutral, neither overbought nor oversold. The STOCH value of 40.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLFD.
Clearfield Risk Analysis
Clearfield disclosed 25 risk factors in its most recent earnings report. Clearfield 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 0 New Risks
Clearfield Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $8.75B | 114.04 | 2.76% | ― | -7.29% | -64.31% | |
60 Neutral | $2.34B | ― | -3.97% | ― | -20.02% | -193.84% | |
59 Neutral | $422.96M | ― | -3.20% | ― | -22.61% | -173.59% | |
58 Neutral | $21.03B | 10.28 | -16.29% | 2.47% | 4.45% | -23.80% | |
51 Neutral | $1.16B | ― | 17.08% | ― | -28.32% | 73.59% | |
45 Neutral | $710.75M | ― | -123.20% | ― | -19.70% | -70.40% | |
45 Neutral | $1.57B | ― | -90.26% | ― | -12.12% | -469.62% |
* Technology Sector Average
Performance Comparison
CLFD
Clearfield
29.93
-0.53
-1.74%
ADTN
Adtran
8.90
3.40
61.82%
CALX
Calix
35.04
2.61
8.05%
CIEN
Ciena
61.56
12.37
25.15%
INFN
Infinera
6.64
0.14
2.15%
COMM
CommScope Holding
5.37
4.05
306.82%
Clearfield Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -18.98% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. The company achieved revenue growth in the Clearfield segment and has promising long-term prospects, especially with new facilities and strong quoting activity. However, challenges remain, including a net loss, declining sales in the Nestor segment, and potential tariff impacts.Highlights
Revenue Growth in Clearfield Segment
Clearfield segment net sales increased 6% year over year, contributing to the overall 4% increase in consolidated net sales for the first quarter of fiscal 2025.
New Facility in Estonia
The new facility in Estonia is projected to accelerate MicroDuct production from near zero to $7 million for the current fiscal year, enhancing European operations with higher-margin solutions.
Strong Quoting Activity
Significant increase in quoting activity observed, signaling strong customer engagement and positioning Clearfield well for upcoming build seasons.
Optimistic Long-Term Outlook
The company is optimistic about long-term revenue growth, expecting the BEAD program to contribute more meaningfully starting in fiscal 2026.
Lowlights
Net Loss Per Share
Reported a net loss per share of $0.13 for the first quarter of fiscal 2025, though it was smaller than the guidance range.
Decline in Nestor Segment Sales
Nestor segment net sales decreased by 6% year over year, reflecting challenges in the European market.
Impact of Tariffs
Potential cost increases due to tariffs on Mexican and Chinese goods, with ongoing uncertainty about the impact on business operations.
Expected Net Loss in Second Quarter
Anticipation of a net loss per share in the range of $0.16 to $0.21 for the second quarter of fiscal 2025.
Company Guidance
During Clearfield's Fiscal First Quarter 2025 conference call, the company provided guidance reflecting steady progress towards normalized growth. Clearfield reported net sales of $35.5 million, aligning with their guidance range of $33 million to $38 million, and a net loss per share of $0.13, which was better than anticipated. The Clearfield segment's net sales increased 6% year-over-year, while the Nestor segment experienced a 6% decline. Clearfield anticipates annual revenue growth in line with or above industry forecasts at 12.5% for fiscal 2025, particularly due to ongoing reductions in inventory and the transition to the second phase of the EA CAM program. The company remains optimistic about long-term opportunities presented by the BEAD program, expecting it to contribute more significantly to revenue in fiscal 2026. Additionally, Clearfield is actively managing potential impacts from new tariffs on Mexican goods, leveraging dual manufacturing sites for cost optimization. Looking ahead, Clearfield projects second-quarter net sales between $37 million and $40 million, with a net loss per share ranging from $0.16 to $0.21.Clearfield Corporate Events
Executive/Board Changes
Clearfield Director Patrick F. Goepel to Step Down
Neutral
Jan 6, 2025
Patrick F. Goepel, a director at Clearfield, Inc., announced he will not seek re-election to the Board of Directors at the 2025 annual meeting, citing a desire to focus on other business opportunities. His decision is not related to any disagreements with the company’s operations, and his term will conclude at the 2025 shareholder meeting.
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.