Clearfield (CLFD) AI Stock Analysis

• Market Cap: $433.23M
• Dividend Yield: N/A
• Average Volume (3M): 190.61K
• Price to Earnings (P/E): 1743.3
• Beta (1Y): 1.29
• Revenue Growth: 5.72%
• EPS Growth: N/A
• Country: US
• Employees: 400
• Sector: Technology
• Sector Strength: 89
• Industry: Communication Equipment
• EPS (TTM): 0.11
• Shares Outstanding: 13,806,049
• 10 Day Avg. Volume: 300,802
• 30 Day Avg. Volume: 190,614
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.01
• Enterprise Value/Ebitda: 92.04
• 1Y Price Target: $46.20
• Price Target Upside: 47.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 51 Neutral
• Price Target: $34.00 ▲(8.35% Upside)

Clearfield's overall stock score reflects a mixed financial performance with strong revenue growth but concerns over profitability and cash flow. The earnings call provided positive insights into segment growth and margin improvements, but technical analysis and valuation metrics are weak, limiting the stock's attractiveness.

Positive Factors

Financial Performance

CLFD delivered solid F3Q25 results as revenue and EPS beat consensus by 5% and $0.07, respectively.

Inventory and Backlog

Customer inventories have normalized, and backlog grew by 31%, indicating a positive inflection.

Market Position

Strong Large Regional segment sales benefited from a significant customer pull-in, indicating a robust market position.

Negative Factors

Community Broadband Sales

CLFD core Community Broadband sales declined by 5% year-over-year, impacted by BEAD delays and lack of planning for business as usual.

Earnings Guidance

F4Q guidance was below consensus by 3% in revenue and $0.06 in EPS, signaling potential challenges ahead.

Clearfield Business Overview & Revenue Model

Company Description

Clearfield, 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 Money

Clearfield generates revenue primarily through the sales of its fiber management and connectivity products. The company's revenue model is built on selling a wide range of hardware and accessories, including optical network terminals, fiber distribution panels, and various enclosures designed for network installations. Key revenue streams include direct sales to telecommunications service providers, utilities, and other organizations involved in building out fiber networks. Additionally, Clearfield benefits from partnerships with major telecommunications companies, which often involve joint projects and collaborations that can lead to significant contract revenues. The increasing demand for high-speed internet and the ongoing expansion of fiber optic networks, driven by advancements in technology and the need for reliable communication infrastructure, further contribute to Clearfield's earnings.

Clearfield Financial Statement Overview

Summary

Clearfield is facing declining revenues and profitability pressures, but maintains strong financial stability with a solid balance sheet and effective cash management. The company has a high equity ratio and low debt-to-equity ratio, enhancing its liquidity position despite operational challenges.

Income Statement

The income statement shows a challenging period for Clearfield with declining revenue and profitability. The TTM data reveals a negative EBIT and net income, indicating operational difficulties. However, there is a slight improvement in gross profit margin compared to the previous year, suggesting potential stabilization in cost management.

Balance Sheet

Clearfield's balance sheet remains strong with a high equity ratio and a low debt-to-equity ratio, indicating solid financial stability. The substantial increase in cash and cash equivalents enhances liquidity, providing a buffer against operational losses. The return on equity is currently negative due to net losses, which is a concern.

Cash Flow

The cash flow statement highlights positive free cash flow and a strong operating cash flow to net income ratio, suggesting effective cash management despite net losses. However, the free cash flow growth rate is modest, reflecting limited cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	132.59B	166.71M	268.72M	270.88M	140.76M	93.07M
Gross Profit	37.62B	28.89M	85.28M	112.95M	61.18M	37.91M
EBITDA	5.56M	-8.34M	43.34M	67.23M	27.54M	10.81M
Net Income	200.00K	-12.45M	32.53M	49.36M	20.33M	7.29M
Balance Sheet
Total Assets	314.71B	315.27M	355.52M	229.13M	125.91M	95.30M
Cash, Cash Equivalents and Short-Term Investments	117.23B	130.99M	168.11M	22.45M	23.59M	27.03M
Total Debt	20.81B	21.28M	22.77M	36.85M	2.53M	2.79M
Total Liabilities	50.23B	39.51M	40.35M	81.55M	22.09M	12.54M
Stockholders Equity	264.48B	275.76M	315.16M	147.58M	103.82M	82.75M
Cash Flow
Free Cash Flow	22.70M	12.66M	11.63M	-8.15M	8.86M	4.85M
Operating Cash Flow	31.88M	22.22M	20.01M	1.00M	10.90M	6.66M
Investing Cash Flow	-7.16M	-6.90M	-112.25M	-8.20M	-13.60M	-41.13K
Financing Cash Flow	-16.23M	-36.91M	113.42M	10.65M	-536.00K	-246.73K

Clearfield Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 31.38 is below the 20-day moving average (MA) of 39.95, below the 50-day MA of 40.77, and below the 200-day MA of 34.66, indicating a bearish trend. The MACD of -2.66 indicates Positive momentum. The RSI at 28.33 is Positive, neither overbought nor oversold. The STOCH value of 10.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLFD.

Clearfield Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILT	74 Outperform	$505.03M	22.44	7.49%	―	19.67%	12.32%
AUDC	64 Neutral	$292.95M	21.72	7.32%	3.88%	-0.93%	3.10%
CRNT	63 Neutral	$170.57M	12.53	8.61%	―	5.06%	29.66%
Sector *	61 Neutral	$36.32B	7.30	-7.27%	1.96%	7.76%	-6.42%
ADTN	56 Neutral	$707.66M	―	-53.68%	―	3.52%	81.33%
AVNW	54 Neutral	$274.45M	―	-1.32%	―	12.39%	-123.62%
CLFD	51 Neutral	$433.23M	1,743.33	0.07%	―	5.72%	―

Clearfield Corporate Events

Clearfield Director Patrick F. Goepel to Step Down

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.