Clearfield (CLFD) AI Stock Analysis

• Market Cap: $439.77M
• Dividend Yield: N/A
• Average Volume (3M): 99.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -22.61%
• EPS Growth: -173.59%
• Country: US
• Employees: 400
• Sector: Technology
• Sector Strength: 66
• Industry: Communication Equipment
• EPS (TTM): -0.63
• Shares Outstanding: 14,131,537
• 10 Day Avg. Volume: 82,541
• 30 Day Avg. Volume: 99,336
• 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: 0.80
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 12.15
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $46.00
• Price Target Upside: 47.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Clearfield's overall stock score of 55 reflects a company facing significant challenges. While its balance sheet strength and long-term growth potential are positives, the current financial performance issues, negative valuation metrics, and bearish technical indicators weigh heavily. The mixed sentiment from the latest earnings call adds to the cautious outlook, highlighting the need for strategic improvements and careful navigation of market challenges.

Positive Factors

Financial performance

Clearfield reported revenue in line with estimates, with significant outperformance on the bottom line.

Government funding

Management pointed towards returning government E-ACAM subsidies as a significant growth driver.

Market demand

Community broadband revenue increased 8% year-over-year as management noted the inventory overhang in this segment has predominantly cleared.

Negative Factors

Backlog

Backlog decreased -40% year over year on shortening lead-times.

Guidance

Guidance for F1Q25 revenue/EPS was provided below consensus expectations.

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 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.

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.

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.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
166.71M	268.72M	270.88M	140.76M	93.07M
	Gross Profit
28.89M	85.28M	112.95M	61.18M	37.91M
	EBIT
-23.22M	37.29M	63.82M	25.23M	8.38M
	EBITDA
-8.34M	43.34M	67.23M	27.54M	10.81M
	Net Income Common Stockholders
-12.45M	32.53M	49.36M	20.33M	7.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
130.99M	168.11M	22.45M	23.59M	27.03M
	Total Assets
315.27M	355.52M	229.13M	125.91M	95.30M
	Total Debt
18.36M	22.77M	36.85M	2.53M	2.79M
	Net Debt
2.19M	-15.06M	20.20M	-10.69M	-13.65M
	Total Liabilities
39.51M	40.35M	81.55M	22.09M	12.54M
	Stockholders Equity
275.76M	315.16M	147.58M	103.82M	82.75M
Cash Flow		Free Cash Flow
12.66M	11.63M	-8.15M	8.86M	4.85M
	Operating Cash Flow
22.22M	20.01M	1.00M	10.90M	6.66M
	Investing Cash Flow
-6.90M	-112.25M	-8.20M	-13.60M	-41.13K
	Financing Cash Flow
-36.91M	113.42M	10.65M	-536.00K	-246.73K

Clearfield Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLFD, the sentiment is Neutral. The current price of 31.12 is above the 20-day moving average (MA) of 27.47, above the 50-day MA of 29.24, and below the 200-day MA of 34.29, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 64.42 is Neutral, neither overbought nor oversold. The STOCH value of 88.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLFD.

Clearfield Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILT	71 Outperform	$372.32M	14.98	8.58%	―	14.79%	5.04%
AUDC	67 Neutral	$280.77M	18.93	8.06%	3.81%	-0.90%	80.24%
CRNT	65 Neutral	$209.66M	8.67	16.02%	―	13.54%	278.70%
AVNW	63 Neutral	$234.78M	―	-1.40%	―	20.95%	-121.24%
Sector *	60 Neutral	$10.95B	10.48	-7.05%	2.99%	7.56%	-12.20%
CLFD	55 Neutral	$439.77M	―	-3.20%	―	-22.61%	-173.59%
ADTN	45 Neutral	$630.10M	―	-123.20%	―	-19.70%	-70.40%

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.