Clearfield (CLFD) AI Stock Analysis

• Market Cap: $395.52M
• Dividend Yield: N/A
• Average Volume (3M): 117.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -9.94%
• EPS Growth: 30.96%
• Country: US
• Employees: 400
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.65
• Shares Outstanding: 13,839,096
• 10 Day Avg. Volume: 106,629
• 30 Day Avg. Volume: 117,389
• PEG Ratio: 1.88
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 3.20
• P/FCF Ratio: 22.05
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 7.49
• Enterprise Value/Ebitda: 25.14
• 1Y Price Target: $43.50
• Price Target Upside: 52.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.66
• Revenue Forecast (FY): $164.63M

• Rating: 53 Neutral
• Price Target: $30.00 ▲(4.97% Upside)

Clearfield's overall stock score reflects challenges in financial performance and valuation, weighed down by declining revenue and a negative P/E ratio. However, positive earnings call insights and strategic corporate events provide some optimism for future growth.

Positive Factors

Net Sales Growth

The 13% increase in net sales indicates strong demand for Clearfield's products, suggesting effective market positioning and potential for continued revenue growth.

New Product Lines

The introduction of new products can drive future growth by expanding Clearfield's market offerings and addressing emerging customer needs in non-hyperscale data centers.

Strong Cash Position

A robust cash position provides Clearfield with the financial flexibility to invest in growth opportunities and weather economic uncertainties.

Negative Factors

Declining Revenue

The decline in revenue highlights challenges in maintaining market share or pricing power, which could impact long-term financial stability.

Divestiture Write-Down

The significant write-down from the divestiture indicates potential past misallocations of capital, affecting profitability and financial performance.

Government Shutdown Impact

These external factors could lead to short-term revenue volatility and impact Clearfield's ability to meet financial targets, affecting investor confidence.

Clearfield Business Overview & Revenue Model

Company Description

Clearfield, Inc. (CLFD) is a leading provider of fiber management, connectivity, and other telecommunications solutions, primarily serving the broadband industry. The company specializes in innovative products designed to streamline the deployment and management of fiber optic networks, catering to service providers, municipalities, and enterprises. Clearfield's core offerings include optical distribution frames, fiber enclosures, and various connectivity solutions that enhance network performance and reliability.

How the Company Makes Money

Clearfield generates revenue through the sale of its fiber management and connectivity products, which are essential for the deployment of fiber optic networks. The company has a diverse revenue model that includes direct sales to customers, as well as partnerships with distributors and telecommunications companies. Key revenue streams stem from product sales, including optical distribution frames and enclosures, as well as ongoing support services and solutions for network management. Additionally, Clearfield benefits from partnerships with major telecom providers, which helps expand its market reach and drive sales growth.

Clearfield Financial Statement Overview

Summary

Clearfield's financial performance is challenged by declining revenue and profitability, with a negative net profit margin and low EBIT and EBITDA margins. The balance sheet is stable with low leverage, but cash flow management needs improvement to enhance liquidity.

Income Statement

Clearfield's income statement shows a declining trend in revenue with a significant drop of 16.28% in the latest year. The company has struggled with profitability, evidenced by a negative net profit margin of -5.36%. Despite a positive gross profit margin of 33.66%, the EBIT and EBITDA margins are low, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, the return on equity has been negative in recent years, suggesting inefficiencies in generating returns from equity. The equity ratio remains healthy, supporting the company's solvency.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth, but operating cash flow remains positive. The free cash flow to net income ratio is low, indicating potential challenges in converting profits into cash. The company needs to improve cash generation to support operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	150.13M	150.13M	166.71M	268.72M	270.88M	140.76M
Gross Profit	50.54M	50.54M	28.89M	85.28M	112.95M	61.18M
EBITDA	15.06M	14.79M	-8.34M	43.34M	67.23M	28.04M
Net Income	-8.05M	-8.05M	-12.45M	32.53M	49.36M	20.33M
Balance Sheet
Total Assets	306.17M	306.17M	315.27M	355.52M	229.13M	125.91M
Cash, Cash Equivalents and Short-Term Investments	105.98M	105.98M	128.97M	168.11M	22.45M	23.59M
Total Debt	8.76M	8.76M	13.52M	16.48M	36.85M	2.53M
Total Liabilities	50.01M	50.01M	39.51M	40.35M	81.55M	22.09M
Stockholders Equity	256.16M	256.16M	275.76M	315.16M	147.58M	103.82M
Cash Flow
Free Cash Flow	24.71M	24.71M	12.66M	11.63M	-8.15M	8.86M
Operating Cash Flow	29.45M	29.45M	22.22M	20.01M	1.00M	10.90M
Investing Cash Flow	-8.84M	-8.84M	-6.90M	-112.25M	-8.20M	-13.60M
Financing Cash Flow	-14.24M	-14.24M	-36.91M	113.42M	10.65M	-536.00K

Clearfield Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 28.58 is below the 20-day moving average (MA) of 29.15, below the 50-day MA of 31.99, and below the 200-day MA of 34.34, indicating a bearish trend. The MACD of -0.68 indicates Negative momentum. The RSI at 41.46 is Neutral, neither overbought nor oversold. The STOCH value of 8.11 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
BKTI	77 Outperform	$291.75M	23.64	38.74%	―	10.12%	153.04%
GILT	70 Outperform	$758.85M	28.95	6.95%	―	29.67%	41.90%
AVNW	66 Neutral	$267.92M	20.01	5.24%	―	10.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AMPG	58 Neutral	$63.36M	-6.00	-27.13%	―	93.47%	37.19%
CLFD	53 Neutral	$395.52M	-49.29	2.37%	―	-9.94%	30.96%
CRNT	49 Neutral	$190.12M	140.79	0.84%	―	-3.78%	-92.62%

Clearfield Corporate Events

Clearfield Updates Bylaws for Proxy Access Compliance

On December 10, 2025, Clearfield, Inc. announced amendments to its Bylaws to implement proxy access and align with SEC’s universal proxy card rules. These changes allow shareholders owning 3% or more of the company’s stock for at least three years to nominate directors, with provisions ensuring compliance with the Universal Proxy Rules and procedural updates for shareholder meetings.

Clearfield Sells Finnish Subsidiary in Strategic Move

On November 11, 2025, Clearfield, Inc. finalized the sale of its subsidiary, Clearfield Finland Oy, to two employees of Nestor Cables Oy for $1 in cash and $5.8 million in inter-company receivables. This divestiture, part of a management buyout, allows Clearfield to focus on its core business and is expected to enhance profitability and operating margins. The transaction, which will result in a one-time fiscal charge, aligns with Clearfield’s strategy to streamline operations and reduce costs, supporting Build America, Buy America requirements.

Clearfield Appoints New Board Members for Growth

On October 28, 2025, Clearfield, Inc. announced the appointment of Rebecca B. Seidel and Kathleen S. Skarvan to its Board of Directors, effective December 10, 2025. This strategic move aims to enhance the board’s collective strength and support Clearfield’s long-term growth. Both appointees bring extensive experience in their respective fields, with Ms. Seidel having a strong background in MedTech and Ms. Skarvan in high technology and strategic leadership. Their appointments coincide with the retirement of current directors Charles N. Hayssen and Donald R. Hayward, who will step down at the 2026 annual meeting of shareholders. This transition is expected to bolster Clearfield’s strategic direction and operational excellence, potentially impacting stakeholders positively by driving growth and innovation.